Missed ITR deadline? Don’t lose your TDS refund

Missing the ITR filing deadline does not guarantee the loss of your tax refund. However, there are specific rules, fees, and conditions that apply if you file late. You may still be able to claim your TDS refund even after missing the deadline, but there are certain conditions and potential consequences to consider.

TDS stands for Tax Deducted at Source, which is an advance tax that is deducted from your income for tax tracking purposes. Taxpayers who have no income tax liability or whose liability is less than the TDS amount can file an ITR to receive a refund of the TDS deducted. For example, if the income tax liability is Rs 700 but Rs 1,000 is deducted as TDS, you can claim a refund of Rs 300.

There are various scenarios where you might be able to claim a TDS refund even after missing the deadline. For instance, NRI property sellers can get the TDS refunded if they have no income tax liability or the TDS amount exceeds their liability. Similarly, retired senior citizens earning less than Rs 12 lakh but more than Rs 1 lakh from FD interest can also claim a refund if their circumstances meet the criteria.

To claim a TDS refund after missing the deadline, you can file a belated return under section 139(4) by December 31 of the assessment year. However, this can attract interest and a late-filing fee of Rs 1,000 or Rs 5,000, depending on your total income. If the belated-return window has passed, you may need to apply for condonation of delay, subject to the approval of tax authorities and certain conditions.

If the deadline for filing a belated return has also passed, you can still request condonation of delay by demonstrating a reasonable cause for the delay and providing evidence of genuine hardship. Once your application is approved, you can file the tax return and claim a refund. It is recommended to keep relevant documents such as Form 16, Form 26AS, and Annual Information Statement (AIS) ready when making the application.

Keep in mind that filing a belated return after the deadline can result in financial consequences such as late-filing fees and interest. The late-filing fee under Section 234F is Rs 1,000 for total income up to Rs 5 lakh and Rs 5,000 for higher income. Interest may also be payable on the total income minus advance tax, withholding tax, and other eligible tax credits. Additional interest may apply for failing to pay advance tax or for deferment of advance-tax instalments.

Filing a belated return may also impact other tax benefits, such as carry-forward losses and deductions or exemptions. In some cases, continued or willful non-compliance could lead to prosecution proceedings under the Income-tax Act.