Filing Your ITR in 2025? Check These 8 Hidden Refund Opportunities Before Submitting

🧾 Introduction:

The income tax return (ITR) filing season for Financial Year 2024–25 (Assessment Year 2025–26) is now open. While many taxpayers rush to meet the deadline of July 31, 2025 (extended until 15th September 2025), several often miss out on tax refunds they are eligible to claim.

These refunds usually arise from Tax Deducted at Source (TDS) or Tax Collected at Source (TCS) on transactions like car purchases, foreign remittances, cash withdrawals, or interest on deposits—even when one’s actual tax liability is lower.

Before you file your ITR this year, make sure to check whether you fall into any of these 8 commonly overlooked refund situations.

💡 8 Refund Opportunities to Watch While Filing ITR for FY 2024–25

🔹 1. Car Purchase – 1% TCS

Buying a car over ₹10 lakhs triggers a 1% TCS collection by the dealer. If your total tax liability is less, you may be eligible for a refund. This amount is reflected in Form 26AS.

🔹 2. Foreign Remittance – 5% TCS

If you sent more than ₹7 lakhs abroad under the Liberalised Remittance Scheme (LRS)—for travel, education, or gifts—banks deduct 5% TCS. Depending on your income, you may be entitled to a full or partial refund.

🔹 3. High-Value Cash Withdrawal – 2% TDS

Withdrawals exceeding ₹1 crore in a financial year attract 2% TDS under Section 194N. If your total income doesn’t justify this much tax, you can claim a refund by filing your return.

🔹 4. Inoperative PAN – 20% TDS

If your PAN was not linked with Aadhaar and became inoperative, TDS of 20% may have been deducted on FD interest. Once PAN is operative, you can claim the excess tax deducted by filing your ITR.

🔹 5. NRO Account Interest – 30% TDS (for NRIs)

NRIs earning interest on NRO accounts are subject to 30% TDS, even if their income is below the basic exemption limit. Filing an ITR is the only way to claim this refund.

🔹 6. Freelancers & Professionals – Section 44ADA

Professionals opting for presumptive taxation under Section 44ADA may have had 10% TDS deducted on gross receipts. If their final tax liability is lower (or nil), the difference is refundable.

🔹 7. Senior Citizens / Homemakers – FD Interest

Banks deduct TDS on fixed deposit interest even if total income is below the taxable limit. If Form 15G/15H wasn’t submitted, you can claim the refund while filing ITR.

🔹 8. Property Sale – 1% TDS
If you sold a property and reinvested the capital gains (under Section 54 or others), you may still be eligible for a refund of the 1% TDS deducted by the buyer—provided you file your return on time.

📝 Essentials for ITR Filing – AY 2025–26

  • Download Form 26AS and AIS from the Income Tax portal
  • Gather bank interest certificates, Form 16 (if salaried), or books of account (if applicable)
  • Reconcile TDS/TCS entries from high-value transactions
  • Ensure PAN and Aadhaar are linked
  • Use the correct ITR form based on your source of income

📅 ITR Filing Deadline: July 31, 2025 ( Extended until 15th Sepetember 2025)

Filing your return is not just about tax payment—it ensures your eligibility for refunds, avoids penalties under Section 234F, and helps maintain a clean financial record.

Even if you’re not liable to pay taxes, you should still file your return if any TDS or TCS has been deducted. It’s the only way to claim what’s rightfully yours.