Income Tax Return: If TDS (Tax Deducted at Source) is deducted from your salary every month, it is not necessary that the entire tax remains with the government. Many times the company deducts more TDS than required based on estimated income. However, if your tax liability is less or not at all, then there is no need to panic at such a time.

You can get your TDS refund back by filing Income Tax Return (ITR). TDS money does not come into your account automatically, but for this you have to complete some important processes. Let us know what is the complete method of claiming TDS refund.

Do these important things before claiming refund

• First of all check Form 26AS from Income Tax Portal.
• After this, ensure that the deducted TDS has been deposited with the government.
• Take Form 16 from your company, which contains complete information about salary and TDS.
• File ITR only after matching both the documents properly.

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When will I get the refund and how to check?

• First pre-validate the bank account in which you want to take refund and keep it linked to PAN.
• Refunds will be sent to your bank account within 2 to 4 weeks after ITR is e-verified.
• You can check the status of refund online by visiting the Income Tax Portal.
• If there is any error in your bank account or documents, your refund may be delayed.

Why is it important to file ITR?

• To get refund of TDS, it is very important to file Income Tax Return (ITR) within the prescribed date.
• While filing ITR, enter your income, tax saving investments and other important information correctly.
• The system automatically calculates your tax and decides how much refund you get.
• After filing ITR, do not forget to e-verify it, because it is necessary to do it.

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Income Tax Appellate Tribunal (ITAT), Delhi, in a ruling, said that when a seller sells a property and reports Long Term Capital Gain (LTCG) by reporting the entire sale amount in Assessment Year (AY) 2022-23 and claims TDS in the year of sale itself, he should get credit of TDS. This will be considered true even if the buyer has mistakenly deposited this TDS in the wrong year.

This decision was given while hearing a case. In this, an NRI had sold some of his property in AY 2022-23. However, the buyer paid TDS in AY 2023-24, due to which the Income Tax Department refused to give TDS credit to the seller. 20 percent TDS was deducted from the seller, which amounted to approximately Rs 20.99 lakh.

What is Form 71?

Under Form 71, the Income Tax Department helps the seller to get its refund by rectifying the mistake of delay in depositing TDS by the buyer. If TDS has been deposited in the wrong financial year, then with the help of this form it is transferred to Form 26AS of the correct year and the TDS amount is credited. If you want, you can file Form 71 by visiting the official website of the Income Tax Department.

What is the matter?

The person selling the property sold a property for Rs 94.06 lakh in September 2021. The buyer deducted TDS of Rs 20,99,240, but deposited it in the wrong assessment year 2023-24. Whereas when the seller filed his Income Tax Return (ITR) for Assessment Year (AY) 2022-23 on July 27, 2022, he showed taxable income of Rs 4.86 lakh.

Out of this income of Rs 4.86 lakh, Rs 4.64 lakh was income from house property. Whereas the income from other sources was Rs 32,115. He also claimed long term capital loss of Rs 5.55 lakh and TDS credit of Rs 21.6 lakh. This means that if he had got TDS credit, he would have got a tax refund.

Without TDS credit his tax payable was Rs 12,301. While processing his income tax return, the Centralized Processing Center of the Income Tax Department allowed TDS credit of Rs 60,872 against his claim of Rs 21.6 lakh. The CPC did not allow TDS credit of Rs 20.99 lakh which was deducted and deposited by the buyer on the sale of the property.

What did the court say?

The seller filed an appeal before the CIT (A), which was dismissed. Subsequently, he filed an appeal in ITAT Delhi. On November 12, 2025, the court ruled in his favor and said that capital gains are taxable in the same year in which the property transaction takes place. In such a situation, the Income Tax Department should follow the Matching Principle and credit them the TDS of that year.

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