New IT Section 239A has been inserted by the Finance Act 2022, which provides for refund of tax deducted (TDS) u/s 195 on any income (other than interest income) by a taxpayer, if no tax (TDS) was required to be deducted,
Accordingly, CBDT has notified new IT Rule 40G which prescribes the procedure to get such refund, along with format of new IT Form 26D meant for the purpose, vide Notification 98/2022 dt. 17/08/2022. Rule 40G provides that a TDS refund claim in Form 26D has to be made within 30 days from the date of payment of TDS incorrectly deducted.
CBDT Income Tax Notification 98/2022 dt. 17/08/2022: New IT Rule 40G/ Form 29D for Refund u/s 239A of Incorrect TDS u/s 195
G.S.R. 634(E).- In exercise of the powers conferred by sub-section (1) of section 239A read with section 295 of the Income-tax Act, 1961 (43 of 1961), the Central Board of Direct Taxes hereby makes the following rules further to amend Income-tax Rules, 1962, namely:-
1. Short title and commencement.-
(1) These rules may be called the Income-tax (26th Amendment) Rules, 2022.
(2) They shall come into force from the date of their publication in the Official Gazette.
2. In the Income-tax Rules, 1962 (hereinafter referred to as the principal rules),-
(I) in Part VIII, before rule 41, the following rule shall be inserted, namely:-
40G. Refund claim under section 239A.-
(1) A claim for refund under section 239A shall be made in Form No. 29D.
(2) The claim under sub-rule (1) shall be accompanied by a copy of an agreement or other arrangement referred to in section 239A.
(3) The claim under sub-rule (1) may be presented by the claimant himself or through a duly authorised agent.”;
(II) in rule 41, in sub-rule (1), after the words and figures “under Chapter XIX” the brackets, words and figures “(other than under section 239A)” shall be inserted.
3. In the principal rules, in Appendix-II, after the Form No. 29C, the following Form shall be inserted, namely:-
Form No. 29D
(See rule 40G)
Application by a person under section 239A of the Income-tax Act, 1961 for refund of tax deducted
[please refer attachment for detailed format]
Note: The principal rules were published vide notification S.O. 969(E), dt. 26/03/1962 and last amended vide notification GSR 632(E), dt. 17/08/2022.