Taxation laws allow the assesse to claim refunds for excess tax paid to the government during a financial year. A tax refund applicable to employees falls under the following:
Tax Deduction at Source at a rate higher than the actual tax payable.
The companies ask their employees to submit a proof of their tax returns & savings investment so that such savings and investment can be set off against the tax that is deducted.
Section 237 and 245 of Income Tax Act, 1961 deals with provisions relating to refund of taxes and any such refunds arise on an assesse satisfying to the assessing officer that the amount of tax paid by the assesse for any year exceeds the amount of tax payable by him.
There are no specific forms to be filled for claiming tax deduction as the same can be done while filing the income tax returns.
A TDS refund should be claimed in 4-6 months and any refund to be received shall have an interest coverage of 6% per annum if the refund payable is more than 10% of the total payable for that year.