Oracle Text

Counter target spell. If that spell is countered this way, put it into its owner's hand instead of into that player's graveyard.

Draw a card.

Card Rulings

10/1/2005 The countered spell goes to its owner’s hand from the stack. It never hits the graveyard.
2/1/2007 If you Remand a card with Flashback, the card will still be exiled.