How to Claim TDS Refund: A new confusion is arising in front of the youth of the country regarding tax. Especially for those employed people whose salary is below the tax limit, there is no deduction like PF, yet TDS is deducted.
How to file Income Tax Return: There are lakhs of youth in the country whose annual income is less than Rs 7 lakh and there is no deduction like PF (Provident Fund) in their job. In such a situation, a question comes again and again in their mind that is it necessary for them to file ITR (Income Tax Return)? Let’s understand it in simple words.
If your income is less than Rs 7 lakh, then in the new tax system you get complete exemption, that is, no tax has to be paid. But if TDS has been deducted in your salary, then it is necessary to file ITR to get it back. Without filing ITR, you will not get a refund.
What is TDS
TDS means Tax Deducted at Source. When you receive salary, interest, commission, rent or any payment, the paying company or organization deducts some part of that amount and sends it directly to the Income Tax Department. This is called TDS. For example – if your salary is 50,000 and as per the rules, 2,000 tax is deducted on it, then the company will give you 48,000 and send 2,000 to the government. If your total income is less than the tax limit, then you can get that deducted tax back in the form of refund by filing ITR.
Financial planner Bhavana Singh says that non-deduction of PF does not mean that the tax rules change for you. Filing ITR builds your financial credibility, whether it is to take a loan, apply for a visa, or avail any government facility.
