Last Date to claim Income Tax Refunds of Salary TDS Deductions for Last Finacial Year ends on 31st December!

The final date to claim Income Tax refunds for Salary Tax Deducted at Source ( TDS ) deductions for the last financial year ( April 2023 - March 2024 ) is December 31, 2024. File your Income Tax Return (ITR) by this date to avoid the forfeiture of any refunds due for excess TDS deducted from your salary.

Understanding TDS Refunds

A TDS refund happens when the tax deducted from your income exceeds your actual tax liability for the financial year. For example, if your income falls into a lower tax slab than the rate at which TDS was deducted, or if your income is below the taxable threshold, the excess amount is refundable upon filing your ITR.

Get a Handbook on TDS Including TCS as Amended up to Finance Act 2024, Click Here

Verify Your TDS Online

Check your TDS details are accurate before filing your ITR. Here’s how to check your TDS online:
Visit the Income Tax Portal: Register if you’re a new user or log in with your credentials.
Use Your PAN Details: Create an account using your PAN and set a secure password.
Access Form 26AS: Go to your tax credit statement.
Redirect to the TRACES Portal: View TDS details, advance tax payments and other credits.
This simple verification process helps confirm whether the TDS deducted has been credited to your account.

Important Details for Salaried Individuals

For salaried individuals, Here's a quick guide to the applicable forms and the requirements:
ITR-1 (SAHAJ): Suitable for resident individuals with total income up to Rs. 50 lakh from:
Salary or pension.
One house property.
Other sources such as interest or dividends.
Agricultural income (up to Rs. 5,000).
Exclusions: ITR-1 cannot be used by individuals with income exceeding Rs.50 lakh, foreign assets, directorship in a company, or deferred tax liabilities on ESOPs.
ITR-2: Applicable for individuals with income from multiple house properties or capital gains and no income from business or profession.
ITR-4 (SUGAM): For those with total income up to ₹50 lakh, including presumptive income from business or profession.

Get a Handbook on TDS Including TCS as Amended up to Finance Act 2024, Click Here

Documents to Keep Handy

To file your income tax return accurately and on time, the following forms and statements are essential:
Form 16: Provided by your employer, detailing your salary, TDS, and exemptions.
Form 26AS: A statement of taxes deducted and deposited.
AIS (Annual Information Statement): A detailed summary of income, investments, and transactions.
In addition, you may need Form 12BB to declare exemptions such as HRA and deductions under Section 80C to your employer, and Form 10E for claiming relief under Section 89 in case of salary arrears.

Tax Regime Selection

Taxpayers must decide between the old tax regime (offering exemptions and deductions such as HRA, Section 80C, and housing loan interest) and the new tax regime under Section 115BAC, which provides simplified tax slabs but limited deductions.

Get a Handbook on TDS Including TCS as Amended up to Finance Act 2024, Click Here

Why File Before December 31st?

For most taxpayers, the deadline to file their original ITR was July 31, 2024, but the Income Tax Act allows individuals who missed this date to file a belated return or make corrections via a revised return until three months before the end of the assessment year. This translates to a hard deadline of December 31, 2024, for claiming any refunds for the financial year 2023-24.
Refunds: If your employer deducted excess TDS from your salary, filing your ITR before the deadline ensures you can claim your refund.
Compliance: December 31st is the last date for filing belated or revised returns for the financial year 2023-24. After this, no claims for refunds or corrections will be entertained.
Avoid Penalties: Filing late not only leads to loss of refunds but may also attract penalties.

Get a Handbook on TDS Including TCS as Amended up to Finance Act 2024, Click Here

How to Claim Your Refund

When filing your ITR:
Provide Bank Details: Ensure your bank account number and IFSC code are accurate.
Report All Income and Deductions: Double-check your data to avoid discrepancies.
Automatic Refund: Once your ITR is verified and approved, the refund will be processed and credited to your bank account.
As the clock ticks closer to December 31st, taxpayers are urged to file early to avoid last-minute errors and system delays. Your Income Tax refund is your hard-earned money; don’t let it go unclaimed.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates