Interest on refund of tds deposited u/s 195

Update

CBDT has clarified that if a resident deductor is entitled for the refund of tax deposited under Section 195 of the Act, then it has to be refunded with interest under section 244A of the Act, from the date of payment of such tax. 

This clarification has been issued by board in consequence to decision of the Hon’ble Supreme Court of India in the case of Tata Chemical Limited 2014-TIOL-27-SC-IT.

CBDT Circular No. 11/2016 dated 26-04-2016