Refund under TDS / TCS

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....199 of Income Tax Act, 1961 Introduction The TDS/TCS mechanism is intended to facilitate collection of tax at source and grant credit to the deductee or collectee. However, situations may arise where tax is deducted or collected in excess of the amount legally payable, or tax is deposited inadvertently. The Income-tax Act, 2025 provides different mechanisms for claiming such refunds dep....

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.... • excess TDS on contractual or professional payments; • excess TCS collected by the seller. 2. Refund to the Deductor or Collector Refund to the deductor or collector is not a normal consequence of TDS/TCS compliance. It is generally permissible only where tax has been deposited in excess or under circumstances prescribed by the Rules. The Income-tax Rules, 2026 sp....

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.... the prescribed electronic processing mechanism. Processing of refund The refund claim is made electronically in the prescribed form. The Income-tax Department verifies- • amount deposited; • TDS/TCS statements; • challan particulars; • availability of credit; and • correctness of the claim, before issuing the r....

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....m in prescribed cases through Form 26B Rule 219(6) permits refund claim in Form No. 139 Nature of refund Limited to excess payment or specified circumstances Limited to excess payment or specified circumstances Processing Electronic processing by the Income-tax Department Electronic processing under the Income-tax Rules, 2026 Overall impact Ref....