Tds on govt. companies



I am working with a Govt. organisations whos income is completely exempt u/s 10(26b) of Income Tax act .So my question is whether TDS of this organisation is required to be deducted???
 
Reply   
 

Dear Bhaskar,

As per the best of my knowledge, It is mandatory to Deduct TDS under the provisions of the ACT. If TDS is not deducted by you, The expense will be disallowed by 30% under sec 40(a)(1.a).

The company will later file its return and claim for claim. Hence it is advised to you to deduct TDS.

Note:The above answer is based on my interpretation. Hence it may be wrong.
 
Reply   
 
Student

no need to deduct tds when income of payee is exempt u/s 10
 
Reply   
 

Dear Rakesh Sir can you please quote any section or notification for that ???
 
Reply   
 
Accountant

If we focus on the provision of TDS then we can't able to find any tds provision on exempt income. TDS must be deducted on taxable income or that income which income must be included in TOTAL INCOME. So exempt income is not subject to tds as the exempt income is not subjest to income tax.....................

 
Reply   
 

Sir,

My Company has got Southern Railway Contract, for Job Work we want to Deduct TDS or Not.

Please help in this regard

 

 

 
Reply   
 

Sir i am not satisfied with your answer that tds is not required to be deducted on exempt income. an organization whos income is exempt have to obtain tds exemption certificate u/s 197 in order to get exemption
 
Reply   
 
Student

if you have certificate of exemption under 10(26b) no need for tds as income tax s exempted as simple as that there are many cse laws too

tds is not an independent provisions they depend on taxability.
 
Reply   
 
Tax Consultant

No TDS in case of sum payable to Govt./RBI/Corp. established by or under a central Act which is under any law for the time being in force exempt from income tax on its income or a mutual fund(specified u/s 10(23D).----------------as per sec 196 of income tax Act.

 
Reply   
 

LEAVE A REPLY

Your are not logged in . Please login to post replies

Click here to Login / Register  

 


×