Their can be reasons where TDS from your source of income will exceed the actual tax to be deducted as per the provisions applicable to you. Followings are some of the these situations where such things may happen;
- Non submission of Investment proof to employer
At the beginning of the year, most of the employees will declare their investments to get less IT deduction. At the end of the year, these employees are required to submit IT proof to their employer for all the declared investments. But due to some reason these employees may or may not provide proof of their investments resulting in to higher IT deduction from salary.
- Interest on housing loan
Unknowingly it may happen that, the interest portion of the home loan has not been disclosed to your employer or you do not know that such things should be disclosed for lower IT deduction. In that case the employer will deduct tax at a higher rate that will result in to higher IT deduction.
If you are an LIC agent or a commission agent or self employed person then it may happen that the person paying you such income will deduct TDS which you are not eligible to pay or may deduct it at a higher rate.
- Loss in business
You might have paid tax by thinking that there will be profits from your business but it may happen that at the end of the year there will be a loss which was unexpected to you. In those types of situations you can claim the tax amount that has been paid by you earlier as a refund.
- Non submission of 15H/15G
If you are not eligible for IT deduction then you may submit form 15G/15H to the bank for not deducting tax from your interest on saving account. 15G can be submitted by non-senior citizens of India and 15H for senior citizen of India. If you have not submitted then you might end up paying higher tax to the government. If it happens to you then claim refund from IT department.
In these type of situations TDS deducted will be deposited by the payer on your behalf and a certificate for such deduction will be given to you as a proof of such deduction.
Such higher deduction can be claimed as refund. IT department has speed up the process of issuing refund online. So if you are a victim of any of these above cases then please make sure that you file your ITR in time to get refund of tax.