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TMI BlogProcedure for refund of tax deducted at source under section 195 to the person deducting the taxX X X X Extracts X X X X X X X X Extracts X X X X ..... r section 195, in certain situations to the person deducting the tax at source from the payment to the non-resident. After reconsideration, Circular No. 769 is revoked with immediate effect and refund to the person deducting tax at source under section 195 shall be allowed in accordance with the provisions of this Circular. 2. The Board had received representations for approving grant of refund t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ransaction was intended. 3. In the type of cases referred to in sub-paragraph (a) of paragraph 2, the non-resident not having received any payment would not apply for a refund. For cases covered by sub-paragraph (b) of paragraph 2, no claim may be made by the non-resident where he has no further dealings with the resident deductor of tax. This resident deductor is, therefore, put to genuine hards ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any other direct tax law. The balance amount, if any, should be refunded to the person who made such payment under section 195. A separate refund voucher to the extent of such liability under each of the direct taxes should be prepared by the Income-tax Officer or the Assessing Officer in favour of the Income-tax Department and sent to the bank along with the challan of the appropriate type. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... signature of the person furnishing the statement. 6. Refund to the person making payment under section 195 is being allowed as income does not accrue to the non-resident. The amount paid into the Government account in such cases, is no longer tax. In view of this, no interest under section 244A is admissible on refunds to be granted in accordance with this Circular or on the refunds already grant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f claimed as an expense in the case of person making refund claim. 9. It is hereby clarified that refund shall not be issued to the deductor of tax in the cases referred to in clause (i)(c) of paragraph 1 of Circular 769, dated 6-8-1998. 10. The limitation for making a claim of refund under this Circular shall be two years from the end of the financial year in which tax is deducted at source. C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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