How you can claim back excess TDS

If you were unable to make tax-saving investments or failed to inform your employer on
time, you can get back the excess tax deducted if you act now.

If you were not able to submit your investment on time, you can do so before the salary and deductions are
computed for March. Your company will adjust the excess TDS and you may be spared further tax deduction in
the last month of the financial year. Similarly, if you have not exhausted your tax-saving limit under Section
80C till now, you can still do so. If you submit the proof before the next salary cycle, any excess TDS deducted
from your salary will be adjusted in the salary for March.

1. Getting a refund:
Even though you will be able to get the tax adjusted and avoid another hefty TDS in the March salary. The only
way you can get it is by filling your tax returns. Now that the CBDT has made it mandatory for taxpayers to
quote their bank account number and the banks IFSC code in the tax form, refunds are much quicker. If the
tax refund gets delayed due to any reason, the taxpayer is entitled to a 6% interest on the amount which will
start accruing from the first month of the assessment year. However, no interest is payable if the refund
amount is less than 10% of the tax payable during the year.

2. Right size your TDS:
Many of these problems can be avoided by making tax planning from the starting of the new financial year
instead of leaving it for the last minute. You should be aware of all the deductions you are eligible for and
inform your employer well in advance. So, TDS is just equal to the tax which is supposed to pay for the year.
There are many deductions that an employer would incorporate in the Form 16 if you inform on time. (See table)

Deductions that can be included in the Form 16 if employer is informed
Section Deduction for Maximum deduction (in rupees)
80C School fees of children 1 lakh
80C Principal payment of home loan 1 lakh
80D Medical Insurance 15,000
80DD Expenses on handicapped departments 50,000 (1lakh, if disability severe)
80DDB Expenses incurred for specified diseases 40,000 (60,000- for senior citizens)
80E Interest paid on educational loan Full amount
80G Donations to specified institutions 50-100% of amount
80TTA Interest on savings bank account 10,000
80U Disability of taxpayer 50,000 (1lakh, if disability severe)

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