10(23d)

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This discussion clarifies that no TDS needs to be deducted on dividends paid to a mutual fund, as they are exempt under Section 10(23D). It also addresses a query regarding Section 194Q, confirming that TDS applies to the portion of a purchase exceeding £50,000, not the entire amount. Therefore, for a £60 lakh purchase, TDS under 194Q is only required on the £10 lakh that exceeds the threshold.

Chandrasekhar Reddy J

Chandrasekhar Reddy J (Querist)
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07 October 2021 we are paying dividend to a Mutual fund and they are comes under 10(23D)
my Question is whether we need ti deduct TDS on dividend

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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07 October 2021 NO. Mutual Fund are exempted from the deduction u/s. 194.

Chandrasekhar Reddy J

Chandrasekhar Reddy J (Querist)
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09 October 2021 I WOULD LIKE TO ASK ANOTHER QUESTION SIR
iam comes under sec 194Q
for the first time we are purchasing goods from the party value 60 lakhs , Whether we are required to deduct TDS on whole amount or 10 lakhs

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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09 October 2021 TDS u/s. 194Q of the act, to be deducted on Rs.10 lakhs .... (Total value of purchase - 50 Lakhs)

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