TDS Refund: Good News! No Need to File ITR for TDS Refund Anymore, Government is Bringing a New Rule

WBPAY13 hours agoLast Updated: July 21, 2025

TDS Refund: There is great news for taxpayers. You may no longer need to file a long and complicated Income Tax Return (ITR) just to claim a Tax Deducted at Source (TDS) refund. The government is preparing to introduce a new rule to simplify this process, which will be a huge advantage, especially for small taxpayers.

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What is the new rule?

Following the recommendation of a parliamentary committee, the government has decided on this change in its review of the Income Tax Bill 2025. According to the new rule, taxpayers will be able to claim their TDS refund by simply filling out a straightforward form. This process will be entirely based on the TDS data available in Form-26AS. The Central Board of Direct Taxes (CBDT) is responsible for creating this simplified form and process.

Who will benefit the most?

The biggest beneficiaries of this new rule will be small taxpayers whose income is below the taxable limit but have had TDS deducted for various reasons. For example, sometimes banks or employers deduct TDS due to non-submission of necessary documents. For such taxpayers, filing an ITR just to get a refund was a hassle. With the new rule, they will easily get their money back.

Advantages of the new rule

Simple Process: Instead of a lengthy ITR form, a simple form will need to be filled out.
Time-Saving: It will save time by eliminating the complex ITR filing process.
Hassle-Free: It will be much more convenient for small taxpayers to get their TDS refund.
Faster Refunds: With a simpler process, it is expected that refunds will also be processed faster.

When can this rule be implemented?

Although the government has agreed to this proposal, it is still in the implementation phase. It will be effective only after the CBDT creates the new form and its related procedures. It is expected that this change will be introduced as part of the Income Tax Bill 2025 and may be implemented from the next financial year.

This new rule is a big step for taxpayers and a significant effort by the government towards ‘ease of doing business’ and simplifying the tax system. Now, it remains to be seen how effective this new process will be and how much taxpayers will benefit from it.