*****Accountant***** Never insult to any person for any kind of lack of knowledge or misread.
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.....................
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
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.