How to Get Maximum of Your TDS Refunds

The policy of TDS (Tax Deducted at Source) was proposed to deduct certain tax amount from the income of the taxpayers just as he receives such income from a particular source. This was done to simplify tax compliances for the taxpayers.TDS is deducted on different income sources of the taxpayer like Fixed deposit interest income, share trading income, commission income, brokerage income, etc.. In most cases, the taxpayer’s TDS is deducted more than his applicable income tax slab for which he has to claim a refund of TDS deducted.

For Instance, the tax slab applicable on the taxpayer is 5% and TDS deducted on his income is 10%, if the actual tax amount is less than the TDS deductions, then the taxpayer has to claim the additional taxes paid to the government as per the difference of his tax slab applicable and file the required tax amount to the government. There are certain investment avenues and policies which can help a taxpayer to save most of his taxes and claim the maximum of his tax refunds from the government.

Taxgoal as a leading tax consulting firm online helps you receive the maximum of your TDS refunds online. Taxgoal holding expertise of industry known tax professionals and legal experts provides you the right advisory and time-bound solutions to all common tax problems. The agency basis a motive of simplifying taxation for its clients and build the most resulting tax solutions.

TDS Deductions

Some common reasons for which TDS is deducted from the taxpayers (Salaried / Self Employed) income:

1. TDS on rental income of a taxpayer from renting plant/machinery or some land/building.

2. TDS on income from securities.

3. TDS on lottery income.

4. TDS on proceeds from Immovable property.

5. TDS on investment schemes etc.

 

Confirming TDS deductions

TDS deductions are linked to the PAN of the taxpayer. A taxpayer can assess details of all TDS deductions on his account by checking a statement available at the TRACES Portal of the tax department. Once TDS has been deducted and deposited by the deductor, it is submitted to the department by him filling the TDS returns. As the TDS returns are submitted, the TDS amount is reflected in the TDS statement - Form 26AS of the taxpayer.

Best Practices to follow for Maximum TDS Refunds

Excess TDS deducted from taxpayers’ accounts can be claimed back from the Income Tax Department by income tax return filing. A taxpayer is eligible to claim a refund of tax if the actual tax liability of the taxpayer is less than the tax deducted on his account.  Here’re are some ways with which you can save a big part of your income from huge TDS deductions and claim the maximum refunds of taxes from the government.

1. Claim deductions by providing Investment Proofs: Salaried Employees are required to get TDS deducted on their salary income from their employers. They can claim a reduction in TDS deduction through providing them proofs of their investments to their employers which eligible to be claimed as deductions and exemptions under Section 80C and Section 10 of the IT Act. Investment proofs like proof of amount paid towards, NPS (National Pension Scheme) , PPF (Public Provident Fund ), Tax saving ELSS Funds, etc.

This will reduce the taxable income of the taxpayer and hence less TDS shall be charged.

2. Claim exemption on leave travel allowance: Assure that your employer has adjusted for exemption of your leave travel allowance before charging TDS on your salary income. LTA is exempted for employees up to a certain limit under Section 10(5).

3. Use Form 15G and Form 15h for declaration of incomes: If TDS is deducted from certain income sources of the taxpayers and if it is his only income source, then such a taxpayer can apply for non-deduction of TDS on such income by filing a Form 15G and Form 15H. Want to know more about these forms and other tax saving options,

4. Donations: Donations made in cash exceeding value Rs 2000 made with digital mode or other modes of payment are eligible for tax exemption under Section 80GGA of the Income Tax Act, 1961. So, donations can be availed as an alternative option to save taxes or save income from TDS Deductions.

5. Use Form 13 for Speculative Incomes: In case income from lottery tickets or some brokerage is received, submission of Form 13 to the Income Tax Assessing Officer can help the taxpayer to avail lower or no TDS deduction on such income.

6. Distribution of Fixed Deposit Investment: An effective saving TDS deduction on fixed deposit interest income can be by doing distribution of the FD amount among the family members and HUF and availing FD interest in their name.

How Tax goal helps you in claiming maximum TDS Refunds?

Consultants their Tax goal provides the required knowledge of investments and advisory on effective options for the taxpayer to save some part of their income from TDS deductions. We provide the right way of doing taxes and claiming the most out of their estimated tax liability. To our associates, we provide advisory on TDS refunds, tracking the status of refunds, way of going through delayed refunds, and assistance on all income tax queries.

File TDS returns or claim the most demanded TDS refund services in Delhi of us at support@taxgoal.in