How to Claim Google Ads TDS Refund in India

Google Ads is a popular advertising platform used by businesses in India to promote their products and services. As per Indian tax regulations, Google deducts TDS (Tax Deducted at Source) on payments made to Indian advertisers. However, in certain cases, businesses may be eligible for a TDS refund. In this guide, we will walk you through the process of claiming a Google Ads TDS refund in India.

1. Understand TDS on Google Ads Payments:

Tax Deducted at Source (TDS) is a mechanism through which the Indian government collects taxes at the time of payment. In the case of Google Ads, Google deducts TDS on payments made to Indian advertisers at the specified rates as per Indian tax laws. The current TDS rate applicable for advertising services is 2% for individuals and 5% for non-individuals.

2. Determine Eligibility for TDS Refund:

To claim a TDS refund on Google Ads payments, you need to meet certain criteria. Generally, the following situations may make you eligible for a refund:

• Lower TDS liability under Double Taxation Avoidance Agreement (DTAA): If your country of residence has a DTAA with India, which provides for a lower TDS rate than the standard rate mentioned above, you may be eligible for a refund of the excess TDS deducted.
• Non-taxable income or tax exemption: If your income from Google Ads is exempt from tax or falls below the taxable income threshold, you can claim a refund of the entire TDS amount.
• Loss under the head "Income from Business or Profession": If your business incurs a loss, you can claim a refund of the TDS deducted on Google Ads payments.

3. Gather Required Documents:

To claim a TDS refund, you need to gather the following documents:

• Form 16A: Google provides Form 16A, which is a TDS certificate issued by Google, reflecting the TDS deducted on your payments. Ensure that you have the latest and correct Form 16A for the relevant financial year.
• Bank Statement: Obtain a copy of the bank statement showing the TDS deduction made by Google.
• DTAA Certificate (if applicable): If you are eligible for a lower TDS rate under a DTAA, obtain a DTAA certificate from the tax authorities in your country of residence. This certificate will be required to support your claim for a TDS refund.
• Other Relevant Documents: Depending on your specific circumstances, you may need additional supporting documents such as tax exemption certificates or proof of loss under the head "Income from Business or Profession."

4. Prepare the TDS Refund Application:

Once you have gathered the necessary documents, follow these steps to prepare the TDS refund application:

• Visit the Traces website: Go to the TRACES (TDS Reconciliation Analysis and Correction Enabling System) website of the Income Tax Department of India (https://www.tdscpc.gov.in/) and register as a taxpayer.
• Fill out Form 26B: Generate and download Form 26B from the TRACES website. This form is used to claim a TDS refund.
• Fill in the required details: Fill in the necessary information in Form 26B, such as your personal details, PAN (Permanent Account Number), TAN (Tax Deduction and Collection Account Number), TDS certificate details (Form 16A), and the amount of TDS to be claimed as a refund.
• Attach supporting documents: Attach the relevant supporting documents, such as Form 16A, bank statement, DTAA certificate (if applicable), and any other documents required to substantiate your claim.
• Submit the application: Submit the filled-out Form 26B and supporting documents to the appropriate TDS refund processing center mentioned on the TRACES website.

5. Track the TDS Refund Status:

After submitting the TDS refund application, you can track its status online through the TRACES website. The website provides a facility to monitor the progress of your refund application and any updates from the income tax authorities.

6. Follow Up if Required:

In some cases, the income tax authorities may require additional information or documentation to process your refund claim. If you receive any communication from the tax department regarding your application, respond promptly and provide the requested information.

7. Receive the TDS Refund:

Once your TDS refund claim is processed and approved by the income tax authorities, the refund amount will be credited to your bank account through the Electronic Clearing System (ECS) or a physical refund check will be issued to you.

8. Consult a Tax Professional:

If you find the TDS refund process complex or have specific queries related to your circumstances, it is advisable to consult a tax professional or a qualified Chartered Accountant. They can provide personalized guidance and ensure that you comply with all legal requirements.

Remember, the TDS refund process can take time, and it is important to maintain accurate records and follow up with the income tax authorities if required. Be patient and persistent throughout the process.

In conclusion,

claiming a Google Ads TDS refund in India involves understanding the eligibility criteria, gathering the necessary documents, preparing the TDS refund application, and tracking the refund status. By following the steps outlined in this guide and seeking professional assistance when needed, you can navigate the TDS refund process and receive the refund amount you are eligible for.