ITR Filing FY 2024-25: Must You File If TDS Is Deducted?

Tax Deducted at Source or TDS is the tax that is deducted before making a payment to the recipient. (AI image)

It’s tax season again. Taxpayers are busy gathering their documents to file their income tax returns. This year, you have until September 15, 2025, to file.

Do You Need to File ITR If TDS Has Been Deducted?

Many people wonder if they need to file an income tax return if TDS has already been deducted. The answer is simple: yes, you still need to file your ITR.

What is TDS?

TDS stands for Tax Deducted at Source. It is a tax that the government collects directly from various income sources. These sources can include your salary, interest earnings, or rental payments. The tax is deducted before you receive the payment and is then sent to the government.

Common Misconceptions About TDS

Amarpal Chadha, a Tax Partner at EY India, explains a common misconception. Many people think that if TDS has been deducted or if their employer has issued a Form 16, they don’t need to file an ITR. This is not true.

Why You Still Need to File ITR

• TDS does not confirm your tax liability: TDS is often deducted at a prescribed rate. This rate may not match your actual tax liability.
• Legal requirements: Filing an ITR is mandatory if your total income exceeds the basic exemption limit. It is also required if you have foreign income or assets, or have undertaken high-value transactions.
• Refunds and losses: You need to file an ITR if you want a refund of excess TDS. It is also necessary if you intend to carry forward losses.

Important Points to Remember

Chadha also mentions that the law requires you to file an income tax return if the total of TDS and tax collected at source exceeds the specified limit.

Additional Resources

• ITR filing FY 2024-25: Several changes in Form 16! Top things salaried taxpayers shouldn’t miss
• ITR Filing FY 2024-25: Have you got an Income Tax notice? Don’t ignore it! Top types of tax notices & actions required