TDS Refund form: There’s good news for millions of salaried individuals and small-income earners across India. If your income is below the taxable limit and you’re tired of filing Income Tax Returns (ITR) just to get your TDS refund, a major relief might be on the way.
The government is proposing a big change in the upcoming Income Tax Bill 2025, which aims to replace the tedious ITR process with a simple, one-page form—especially for those whose income falls below the taxable threshold.
Why This Change Matters
Imagine this: You earn a modest salary. Your total income is tax-free. But your employer deducted TDS (Tax Deducted at Source) because they didn’t get the full documents on time. Now, to get your own money back, you’re forced to file ITR, navigate confusing portals, wait weeks for refunds—and often, pay someone to file it.
This burden could soon be lifted.
What the New Proposal Says
As per a report by Hindustan Times, a select committee reviewing the Income Tax Bill 2025 has recommended a more people-friendly approach. They believe that:
This form will be based on the taxpayer’s Form 26AS (which shows all TDS entries) and allow them to request a refund in a few easy steps.
What Will Happen Now Instead of Filing ITR?
Here’s how the new system is expected to work:
- A new simple refund claim form will be introduced
- It will pull data directly from Form 26AS
- You will not be required to file a full ITR
- CBDT (Central Board of Direct Taxes) is working on designing this easy form
- The process will be faster and more accessible, especially for senior citizens and low-income earners
This could benefit a large number of employees, especially those with income below ₹5 lakh annually, who often file ITRs only for refunds.
Example: A Real-Life Relief
Let’s say you earn ₹4.2 lakh annually, and your company deducts ₹10,000 TDS due to missing documents. Today, you need to file a complete ITR just to get that ₹10,000 back.
But under the new rules, you’ll be able to simply fill a refund claim form, verify your TDS details through Form 26AS, and the refund will be processed—no ITR, no CA, no stress.
Major Relief for Salaried Employees and Pensioners
If your annual income is up to ₹12.75 lakh under the new tax regime and all tax paperwork is in place, you don’t have to pay any tax. But often, people end up paying TDS due to minor errors or delays in document submission. Now, they won’t need to file a full return just to get their rightful refund.
This is especially beneficial for:
- Low-income salaried workers
- Senior citizens
- Pensioners
- Housewives with small savings
- Freelancers with fluctuating income
More Transparency, More Accountability
The draft bill also proposes better digital rights and data access:
IT officials will be allowed to access electronic records—such as devices, ledgers, or expense trackers—to ensure transparency.
The new tax law will define clear digital audit rules to reduce harassment and increase efficiency.
When Will This Rule Be Applicable?
The Income Tax Bill 2025 is expected to be tabled in Parliament during the Budget Session (2025–26).
Once passed, the new system may come into effect from April 1, 2026.
This comes after a special task force submitted 285 suggestions for simplifying India’s income tax laws—making the tax process smoother, especially for honest taxpayers with limited income.