Question 1

Why do content creators get large TDS refunds?

Accepted Answer

Brands deduct 10% TDS (Section 194J) on the gross payment, regardless of the creator's actual tax liability. However, under Section 44ADA, only 50% of income is taxable if total receipts are under Rs 50 lakh. This means if you earn Rs 10 lakh, TDS deducted is Rs 1 lakh (10%), but your taxable income is only Rs 5 lakh (50% presumptive). For income up to Rs 7 lakh under new regime, tax is zero with rebate 87A. Result: Full Rs 1 lakh TDS becomes refundable!

Question 2

What is Form 16A and why is it important for claiming TDS refund?

Accepted Answer

Form 16A is a TDS certificate issued by brands showing TDS deducted and deposited. It's crucial because: (1) It proves TDS was actually paid to the government, (2) The information must match your Form 26AS for refund processing, (3) Without it, you cannot claim TDS credit in ITR. Brands must issue Form 16A within 15 days of filing quarterly TDS return. If missing, email the brand's finance team requesting the certificate. Check Form 26AS to verify all TDS entries appear correctly.

Question 3

How long does it take to get a TDS refund after filing ITR?

Accepted Answer

Typically 2-4 months for straightforward cases. Timeline: (1) E-verify ITR immediately using Aadhaar OTP/Net Banking, (2) Processing starts within 1-2 weeks, (3) Intimation under Section 143(1) issued within 1-2 months, (4) Refund credited within 15-30 days of intimation. Delays occur if: Form 26AS doesn't match ITR claims, bank account isn't pre-validated, PAN-Aadhaar not linked, or case selected for scrutiny. File early (April-July) for fastest processing.

Question 4

What should I do if TDS appears in Form 26AS but I don't have Form 16A?

Accepted Answer

If TDS reflects in Form 26AS, you can claim it in ITR even without Form 16A certificate in hand. The IT Department validates claims against Form 26AS, not your physical certificates. However: (1) Keep requesting Form 16A from brands for your records, (2) Screenshot Form 26AS entries as proof, (3) If there's a mismatch and refund is denied, you'll need Form 16A to file a rectification. Form 16A is also needed if your case is selected for scrutiny.

Question 5

Can I apply for lower TDS certificate to avoid excess deductions?

Accepted Answer

Yes! Apply for Form 13 (lower/nil TDS certificate) through TRACES if you consistently receive refunds. Requirements: (1) Estimated income and tax calculation for the year, (2) Previous years' TDS refund history, (3) Details of all income sources. Processing takes 15-30 days. Once approved, share the certificate with brands who will deduct TDS at your actual tax rate (could be 0% if income is below taxable limit). This improves cash flow significantly instead of waiting months for refund.

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