SECTION 119 OF THE INCOME-TAX ACT, 1961 – INCOME-TAX AUTHORITIES – INSTRUCTIONS TO SUBORDINATE AUTHORITIES
INSTRUCTION NO. 2/2012 [F. NO. 312/79/2010-OT], DATED 22-2-2012
Representations have been received regarding matters of allowance of refund on the above subject. The board has decided that the time limit prescribed in clause 4 of CBDT Instruction No. 13/2006, dated 22.12.2006 for entertaining application u/s 119(2)(b) of the Act shall not apply if :
|(i)||the applicant has made investment in 8% Savings (Taxable) Bonds, 2003 issued by the Government of India opting for cumulative interest on maturity but has accounted interest earned on mercantile basis, and|
|(ii)||the intermediary bank at the time of maturity has made deduction of tax at source (TDS) on the entire amount of interest paid without apportioning the accrued interest/TDS for various financial years involved.|
However, other conditions prescribed in CBDT Instruction No. 13/2006 shall continue to apply.