Live Course on Drafting of Appeal and Reply of Penalty Notice by CA Sachin Sinha. Register Now!!

TDS is applicable or not on CROWDFUNDING CHARGES

Amol Pawar (Accountant) (99 Points)

15 May 2020

Dear Expert,
Our NGO registered under charitable trust & our most of income from donation. In this year we are getting donation through crowdfunding website. Donor transfer fund to crowdfunding company & crowdfunding company transfer fund to us after deduction their charges. Now my question is that, TDS is applicable or not on company charges.

Reply
Follow
Share

1 Replies

Asha Kanta Sharma (Manager - Finance & Accounts) (10529 Points)
Replied 16 May 2020

I think TDS will be applicable subject to limits under 194H. The rate of TDS is 5%. No deduction shall be made under this section in a case where the amount or the aggregate amounts of such income to be credited or paid during the financial year does not exceed INR 15,000 The Person can make an application to the assessing officer under section 197 for deduction of tax at NIL rate or at a lower rate.