TDS Refund: You will have to provide these important documents to get TDS refund, apply online like this

TDS Refund: According to the Income Tax Act, people paying more than 50 thousand rupees per month as house rent have to deduct TDS and deposit it with the government through Form-26QC. This TDS is deducted from the amount of rent payable annually.

TDS Refund: Due to the new rules of Income Tax Deduction (TDS) on rent and technical glitches on the IT portal, there is a state of confusion among landlords and tenants. Due to this, they are facing a lot of difficulty in filing income tax returns for the financial year 2025 and getting refund. Additional necessary documents are also being sought from them.

Rules changed, information not received

According to the Income Tax Act, people paying house rent of more than 50 thousand per month have to deduct TDS and deposit it with the government through Form-26QC. This TDS is deducted from the amount of rent payable annually. In return, the landlord gets Form-16C (TDS Certificate).

The problem arose here

Earlier the rate of TDS on rent was five percent, which was reduced to 2 percent from October 1, 2024. But most of the tenants did not get information about this. As a result, a large number of tenants deducted tax as per the old rate and deposited it through Form-26QC.

Problems of landlords also increased

Landlords have also faced problems due to the technical flaw in the TRACE system. When they are matching Form-26AS and AIS, they are seeing only 2 percent TDS deduction (credit), whereas the deduction is at the rate of five percent. Due to this, they are facing difficulty in filing income tax returns. For landlords, TDS credit ensures that they have already paid tax to the government.

Refund process

In view of this problem, the Income Tax Department is sending emails to tenants. In these, they have been asked to claim refund online through Form 26B. In some cases, additional documents are also being sought.

  • How to fill the applicationLogin to the TRACE website. Click on ‘Request for Refund’ under the ‘Statements/Forms’ tab.
  • Then select the option ‘I have paid additional tax by mistake’. Add the relevant challan 26QC and fill in the information.
  • The refund amount that can be claimed in Form 26B will be auto-populated. Add the bank account details to which you want the refund.
  • E-verify the form using digital signature or Aadhaar-based OTP and submit it online.

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