Forgot to claim TCS in ITR? Don’t worry at all, you can still get a full tax refund; Know the step-by-step process

Many times, while filing Income Tax Return (ITR), taxpayers forget to claim credit of Tax Collected at Source (TCS) inadvertently or due to data mismatch in Form 26AS and Annual Information Statement (AIS). If you have also not included TCS deducted on foreign travel packages, money sent under Liberalized Remittance Scheme (LRS) or purchase of a car worth more than ₹ 10 lakh in your original return, then your hard-earned money is not going to be lost. Under the Income Tax Act, taxpayers have the right to claim missed tax credits and refunds by amending their returns within the prescribed time limit.

What is TCS and when is it deducted?

Tax Collected at Source (TCS) is the tax collected by the seller or service provider from the buyer on certain high-value transactions and deposited directly with the Central Government. TCS is deducted ranging from 1% to 20% mainly on booking foreign travel tour packages, sending money for study or treatment abroad, purchasing foreign currency and purchasing a car costing more than ₹ 10 lakh. This is not an additional tax or penalty, but an advance tax credit credited to your PAN, which you can deduct from your total tax liability or get back as a refund.

The most efficient way to get back the missed TCS: Revised Return (Section 139(5))

Under Section 139(5) of the Income Tax Act, 1961, if any information is missing or wrongly entered in the original return, then he can file a ‘Revised Return’.

• Deadline: Revised returns can be filed without any penalty till December 31 of the assessment year.

• Eligibility: Taxpayers who had filed the original return within the prescribed deadline of July 31 can easily modify it.

Step-by-step procedure to claim TCS refund through revised ITR

1. Check Form 26AS and AIS: First of all, log in to the e-Filing Portal and go to ‘View Form 26AS’ and ‘AIS’ to ensure that the TCS deducted by the seller or bank is correctly visible on your PAN card.

2. Go to e-File section: Click on ‘e-File’ > ‘Income Tax Returns’ > ‘File Income Tax Return’ on the portal.

3. Select Filing Type: After selecting the relevant assessment year, select the option ‘Revised Return u/s 139(5)’ in the filing section.

4. Fill in the details of the original return: Enter the Acknowledgment Number of the originally filed ITR and the date of original filing.

5. Add Credit to Schedule TCS: Go to the ‘Taxes Paid’ tab and open the ‘Details of Tax Collected at Source (TCS)’ schedule. Here enter the TCS amount recorded in Form 27D or 26AS, Collector’s TAN and the total amount deducted.

6. Tax Calculation and Refund: The system will automatically deduct TCS credit from your total tax liability. If your total tax liability is nil or less, the excess TCS amount will appear on the screen as a refund.

7. E-Verification: E-verify the amended return instantly through Aadhaar OTP, Net Banking or Demat account.

What to do if ITR has been processed and notice under Section 143(1) has come?

If your original ITR has already been processed by the Income Tax Department and you have received an intimation order under Section 143(1), you still have options. You can go to the ‘Services’ tab of the e-filing portal. Rectification Request under Section 154 Can file. In this, by choosing the option of ‘Tax Credit Mismatch Correction’, the missing TCS details can be submitted for re-processing.

It is very important to pre-validate the bank account

The refund amount is transferred directly to your bank account. Therefore, ensure that your bank account is active, PAN-linked and pre-validated in the income tax portal profile. If the bank account name or details do not match the PAN, there may be unnecessary delay in refund.