CBDT vide Notification No. 98/2022 notifies Form 29D for claim of refund for tax deducted at source in certain cases

The Central Board of Direct Taxes (“CBDT”) vide Notification No. 98/2022 dated 17.08.2022, has inserted Rule 40G in the Income-tax Rules, 1962 (“Rules”) prescribing the Form 29D for a refund of tax deducted at source (“TDS”) under section 195 of the Income-tax Act, 1961 (“Act”) in accordance with section 239A of the Act.

The Finance Act, 2022 inserted a new section 239A in the Act, which provides for refund of tax deducted under section 195 of the Act. As per the provisions of the said section, where under an agreement or other arrangement, in writing, a person who is liable to make payment of any income, other than interest to a non-resident and bear the tax-deductible thereon under section 195, may file an application before the Assessing Officer for refund of such tax within a period of thirty days from the date of payment of such tax if such person claims that no tax was required to be deducted on such income. The Assessing Officer shall, after taking into account all the documents and after giving an opportunity of being heard to the person, pass an order within six months from the end of the month in which application for refund is received.

Further, Rule 40G of the Rules provides that a person claiming a refund of TDS under section 239A shall himself or through a duly authorized agent shall make an application in Form No. 29D. The said application shall be accompanied by a copy of an agreement or other arrangement along with other requisite documents.

Note: For detailed analysis, Notification No. 98/2022 dated 17^th August 2022 may be referred.

Last updated: 08/09/2022

Article contributed by:

Rashi Agarwal

Senior Executive - Direct Tax

MBG Corporate Services