Getting a refund on the Tax Deducted at Source (TDS) is one of the biggest reasons taxpayers file their Income Tax Return (ITR) each year. But for many, the process of claiming a TDS refund is filled with confusion—errors in Form 26AS, missed credits, wrong ITR forms, and delays in refunds. If you’ve ever wondered how to claim your TDS refund online without errors or hassle, TaxBuddy’s DIY Filing Tool offers a smarter, faster, and more accurate way to do it.
This guide explains how TDS refunds work, common mistakes people make, and how TaxBuddy makes the refund process seamless with its easy-to-use digital platform.
What is a TDS Refund?
TDS, or Tax Deducted at Source, is a mechanism where tax is collected in advance by deducting it directly from your income—such as salary, interest, or professional payments. Sometimes, this deducted tax is more than what your actual tax liability is, and you become eligible for a TDS refund.
Common reasons for TDS refunds include:
- Your employer deducted excess tax from your salary
- Your bank deducted TDS on interest income, but your total income is below the taxable limit
- TDS was deducted, but you have deductions under 80C, 80D, etc., lowering your total tax liability
In all these cases, the only way to get a refund is by filing ITR.
Step-by-Step: Claiming TDS Refund Using TaxBuddy’s DIY Filing Tool
With TaxBuddy, you don’t need to manually calculate your refund or figure out complex forms. The DIY platform is designed to auto-fetch, auto-calculate, and auto-fill wherever possible—minimizing errors and maximizing refund accuracy.
Here’s how it works:
1. Create an Account or Log In
Visit www.taxbuddy.com and sign up or log into your existing account. The DIY platform is intuitive and works on both desktop and mobile.
2. Import Your AIS and 26AS Details Automatically
Once logged in, you’ll be asked to import your Annual Information Statement (AIS) and Form 26AS, which includes all TDS entries reported by banks, employers, and other deductors.
The tool automatically reads these forms and detects:
- TDS on salary
- TDS on interest income
- TDS on professional receipts
- Any mismatches or missing entries
This saves hours of manual checking and avoids the risk of refund rejections due to errors.
3. Enter Other Income and Deduction Details
Even if your TDS has been deducted, you may still be eligible for refunds if:
- You have Section 80C deductions (e.g. LIC, PPF, ELSS)
- You’ve paid health insurance premiums under 80D
- You’ve made donations under Section 80G
TaxBuddy’s DIY tool will ask relevant questions based on your profile and guide you to fill these sections correctly. You won’t need to worry about missing a deduction or choosing the wrong section.
4. Choose the Correct ITR Form
The platform intelligently selects the correct ITR form (like ITR-1, ITR-2, etc.) based on the income sources you enter. This is critical because incorrect form selection is one of the leading causes of return rejection and refund delays.
5. See Your Refund Estimate in Real-Time
As you fill in your income and deduction details, TaxBuddy shows your real-time tax liability or refund. This helps you understand what you’re owed and why—before even submitting your return.
6. Submit and E-Verify Instantly
Once you review your return, the tool lets you submit it directly to the Income Tax Department and helps you e-verify it through Aadhaar OTP, Net Banking, or EVC.
Remember, your refund process only starts once you e-verify your return. TaxBuddy ensures this step isn’t missed.
7. Track Refund Status
TaxBuddy also gives you updates on your refund status and flags if there’s any delay or mismatch that needs attention. You’ll never be left wondering whether your refund is stuck or in progress.
Common TDS Refund Mistakes TaxBuddy Helps You Avoid
- Filing under the wrong ITR form
- Missing TDS entries due to manual errors
- Not claiming eligible deductions
- Not e-verifying the return
- Ignoring TDS mismatch between AIS and Form 26AS
- Filing with incorrect bank account details for refund
TaxBuddy’s DIY platform eliminates these errors through automation, intelligent suggestions, and in-app prompts that guide you at every step.
Why Choose TaxBuddy’s DIY Tool for TDS Refunds?
- User-Friendly Design: Built for salaried individuals, freelancers, senior citizens, and anyone with basic income sources.
- Expert-Verified Logic: TaxBuddy’s tax experts have embedded key filing rules into the software, making it smarter than generic platforms.
- Secure & Private: Your data is protected with end-to-end encryption.
- Auto-Match with Government Records: No more second-guessing if your employer or bank filed TDS correctly.
- Affordable: DIY plans start at just ₹199, and you can always upgrade to assisted plans if your case is complex.
What If You Receive a Refund-Related Notice?
In some cases, if there’s a mismatch in TDS, or if the refund claimed is unusually high, the IT department may send notices like:
- Section 143(1): Discrepancy in calculation
- Section 139(9): Defective return
- Refund Failure Notice: Due to incorrect bank details or Aadhaar issues
TaxBuddy’s team also offers Notice Management Services, so if you get a notice after filing—even when you used the DIY tool—you can switch to assisted support without starting over.
Final Thoughts
Claiming your TDS refund shouldn’t be a stressful or risky task. TaxBuddy’s DIY Filing Tool is designed to simplify the process, ensure compliance, and help you get your refund as fast as possible—without relying on expensive tax professionals.
With automatic form selection, real-time refund estimates, and support for all types of TDS entries, TaxBuddy turns ITR filing into a task you can complete in 15-30 minutes, even if you’ve never filed a return before.
And if you ever feel stuck, the “Schedule a Call” option connects you with real tax experts—so you’re never left in the dark.
Author Bio
Written by Emily Rhodes, a senior content strategist at SEOEngine.agency, Emily brings over five years of experience writing in fintech and tax compliance. She has worked closely with TaxBuddy since 2021, simplifying tax filing concepts for Indian users at home and abroad.