Missing the ITR filing deadline does not necessarily mean losing the income tax refund due to you. But if you file late, there are certain rules, fees and conditions you need to know. So, can you still claim your TDS refund after missing the deadline, and what happens if the belated return window has also passed?
How does TDS work?
Tax Deducted at Source (TDS) is not an income tax amount; it is like an advance tax, but one that is deducted from your income so that the Income Tax Department can track the transaction.
This means that taxpayers who don’t have any income tax liability in India, or whose income tax liability is less than the TDS amount deducted, can file ITR to get an income tax refund (of the TDS deducted).
For example, if your income tax liability is Rs 700, but a TDS of Rs 1,000 has been deducted, you can get a refund of Rs 300 while filing ITR.
Some examples showing TDS refund scenarios:
- NRIs selling property in India can get back the TDS deducted by the buyer while filing ITR if they have no Income tax liability in India or the TDS amount is more than the income tax liability.
- Another example can be a retired senior citizen who earns more than Rs 1 lakh from FD interest, yet his total annual income is less than Rs 12 lakh; these seniors can get the TDS refund back while filing ITR if they have no other income tax liability or the TDS amount is more than the tax liability.
Can you claim a TDS refund if you missed the ITR deadline?
TDS is a tax credit, not an automatic refund. A refund arises only when the tax already paid is more than the taxpayer's final tax liability after the return is filed.
“For FY 2025-26 (AY 2026-27), an individual who has missed the original due date can file a belated return under section 139(4) up to December 31, 2026, subject to the applicable provisions of law,” says Itesh Dodhi, Director, Nangia & Co LLP.
A belated return can, however, attract applicable interest and a late-filing fee of Rs 1,000 or Rs 5,000, depending on total income. If the belated-return window is already over, the taxpayer may need to approach the tax authorities for condonation of the delay.
Condonation of delay in filing an ITR is a special relief provided by the Income Tax Department to taxpayers who miss the prescribed deadline for filing or verifying their return. Every taxpayer is required to file their Income Tax Return and complete its verification within the specified time limit.
