Refund of TDS under section 195 allowed to deductor where no income accrues to non-resident, subject to approval and conditions. Refunds of tax deducted at source under section 195 are permitted to the deductor where no income has accrued to the non-resident due to non-materialisation or cancellation of the transaction, subject to prior approval of the Chief Commissioner. The Assessing Officer may adjust the refundable amount against existing direct tax liabilities, prepare separate refund vouchers for each adjusted tax head and refund any balance. No interest on such refunds is payable. Claimants must provide an undertaking regarding certificates issued to the non-resident or indemnify the Department, ensure corresponding expense is disallowed if claimed and file claims within two years from the end of the financial year in which tax was deducted.