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How to get refund of Tax Deducted under section 195


Notification no. 98/2022, dated 17-08-2022

The Finance Act 2022 inserted a new section 239A in the Income-tax Act. It provides that a taxpayer may file an application before the Assessing Officer to get the refund of tax deducted under section 195 on any income (other than interest) if no tax deduction was required.

As per section 239A, such application is required to be filed within 30 days from the date of payment of such tax in the prescribed form and manner.
The Central Board of Direct Taxes (CBDT) has inserted a new Rule 40G in the Income-tax Rules, 1962 prescribing the manner to get the refund of tax in accordance with section 239A.

Rule 40G provides that a claim for refund under section 239A shall be made in Form No. 29D. The application in Form 29D shall be accompanied by copy of an agreement or other arrangement referred to in section 239A

By considering the above facts there was a proposal to amend the provisions of Section 248 and insert a new section 239A with effect from 1st April 2022

The CBDT has now vide notification G.S.R.634(E) dated 17th august 2022 introduced Rule 40G wherein the manner in which the application for refund can be filed is prescribed.

As per Rule 40G in order to get the refund of tax deducted by a taxpayer on the income of Non resident other than interest under section 195, Form 29D has to be filed before the Assessing officer.

Sec 239A provides the taxpayer to raise a request for refund of Tax deducted under Section 195 under an agreement or arrangement and no such tax deduction was required may file an application for refund before the Assessing Officer to get the refund of TDS under section 195 The application before the Assessing officer is required to be filed within 30 days from the date of payment of tax liability.

After receiving the order from the AO if such person is not satisfied with the order may file an appeal with the Commissioner (Appeals) as per the provisions of sec 246A. If the date of appeal and date of tax payment is on or after 1st April 2022 the provisions of Sec 248 will not be applicable.

Below is the list of details sought for in the New Form 29D:

1. Details of applicant:
a) Status (State whether individual, Hindu Undivided Family, Firm, Body of Individuals, Company)

b) Residential status (Resident/ Resident but not ordinarily resident/ Non-resident during the relevant year)

c) Permanent Account Number or Aadhaar Number

d) E-mail ID

e) Mobile Number


2. Details of the deductee:

a) Name

b) Status (State whether individual, LLP, Firm, Body of Individuals, Company etc.)

c) Permanent Account Number (if available)

d) E-mail ID

e) Mobile Number

3. Details of agreement or other arrangement (Please attach a copy of the same with this application):

a) Date of signing the agreement or other arrangement

b) Date on  which  the  agreement  or  other  arrangement  came into effect

c) Time Period for  which  the  agreement or  other arrangement is effective


4. Details of transaction on which tax not deductible has been deducted

a) Amount of transaction (in INR)

b) Date of transaction

c) Date of payment made

d) Mode of payment (Please attach a copy of proof of payment)

(e) Nature of transaction


5. Details of tax deducted on transaction specified in point (iv) above

a) Amount of tax deducted (in INR)

b) Date of tax deduction

c) Date on which the tax deducted was deposited in Government Account

d) Details of challan


6. Details of Payment

a) BSR Code

b) Date of deposit in Government Account

c) Serial Number of the challan

d) Amount (Rs)


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