Summary: Missing the deadline for filing your Income Tax Return (ITR) doesn’t mean you forfeit your Tax Deducted at Source (TDS) refund. Taxpayers, including NRIs with higher TDS rates, can claim refunds by declaring the missed year’s income in the current ITR. To proceed, add the relevant income to this year’s return and input the corresponding TDS credit details in Schedule TDS of your ITR. Mention the financial year when TDS was deducted while filing. This workaround is suitable for individuals with no taxable income in the missed year. Taxpayers with taxable income should file a condonation of delay request with their Assessing Officer if substantial TDS amounts are involved, but approvals are typically granted only for genuine cases. The process accommodates TDS claims for up to four years, as allowed by the system. Accurate details matching your Form 16/16A are essential to ensure processing. This alternative method is beneficial for cases with missed filings but should be considered only when regular filing isn’t an option. Always aim to file ITRs within the due date to avoid complications.
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How to Claim TDS Refund for Missed ITR Filing
If you have missed filing your Income Tax Return (ITR) within the allowed time and have TDS credit, there is a way to claim your refund.
Disclaimer: This is not the proper method to follow as per tax laws. However, if you had no taxable income for the year you missed filing, this workaround may be used without much concern.
For those with taxable income, the proper method is to file a condonation of delay request with your Assessing Officer. Once approved, you can file the return. However, officers usually approve such requests only if there is a significant TDS amount involved (e.g., ₹50,000 or more) and a genuine reason for the delay.
This alternative approach is particularly helpful for NRIs who have interest income subject to higher TDS rates.
Steps to Claim TDS Credit in Your Current ITR
- Add Missed Income to This Year’s Return:
Include the income for which TDS was deducted in the year you missed filing in the current year’s income. - Claim the TDS Credit:
Enter the TDS credit in Schedule TDS of your ITR. Ensure that:- You mention the financial year for which the TDS was deducted in the column “Fin. Year in which deducted.”
- For example, if you are claiming TDS deducted in FY 2023-24, enter the starting year, i.e., “2023.”
- Process and Refund:
By entering the proportionate income and the corresponding TDS credit, your return will be processed without disallowance of the credit, and the refund (if any) will be issued.
Key Points to Remember
- You can claim TDS credit for multiple years, as allowed by the system.
- Based on personal experience, TDS credit for up to four years has been successfully processed with refunds.
- This method works best for cases where taxable income is absent for the missed year.
Example of TDS Schedule Entry
To make it easier to understand, here is an example of the TDS Schedule filled out correctly:
Details of Tax Deducted at Source (TDS) on Income [As per Form 16A issued or Form 16B/16C/16E furnished by Deductor(s)]
Sl. No. |
TDS Credit Relating to Self/ Other Person |
PAN of Other Person (if TDS Credit Relates to Other Person) |
Aadhaar of Other Person (if TDS Credit Relates to Tenant/ Buyer) |
TAN of Deductor |
Financial Year in Which Deducted |
TDS B/F |
TDS of the Current Financial Year (Deducted During FY 2023-24) |
Deducted in the Hands of Spouse or Any Other Person (as per Rule 37BA(2)) |
TDS Credit Being Claimed This Year (If Corres-ponding Income is Being Offered for Tax This Year. Not Applicable if TDS is Deducted u/s 194N) |
Corres-ponding Receipt/ Withdra-wals Offered |
Gross Amount |
Head of Income |
TDS Credit Being Carried Forward |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
1 |
Self |
9577F |
0 |
52,877 |
0 |
52,877 |
0 |
1,69,450 |
Income from Other Sources |
0 |
|||
2 |
Self |
0969D |
0 |
44,564 |
0 |
44,564 |
0 |
1,42,818 |
Income from Other Sources |
0 |
|||
3 |
Self |
0969D |
2022 |
47,270 |
0 |
0 |
47,270 |
0 |
1,51,490 |
Income from Other Sources |
0 |
||
4 |
Self |
0969D |
2022 |
43,377 |
0 |
0 |
43,377 |
0 |
1,39,003 |
Income from Other Sources |
0 |
||
5 |
Self |
0969D |
2021 |
52,965 |
0 |
0 |
52,965 |
0 |
1,69,704 |
Income from Other Sources |
0 |
Ensure that the details in the TDS Schedule are accurate and match the TDS certificate (Form 16/16A).
This method is a lifesaver for taxpayers, especially NRIs, who may have higher TDS deductions but no taxable income in India. While this workaround is helpful, it’s always better to file returns within the stipulated time to avoid complications.
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GST Amendments 128A