Is TDS exempted when Payment to a Trust
This query is : Resolved
01 July 2011
Dear All
We want to make payment to a Trust of Rs. 40000/-, but that Trust have an order sbjected with "Order of Registration Under Section 254/12AA, read with Section 12A of the income tax Act, 1961" from Income Tax that their income is not taxable i.e. income tax is exempted. and that basis Trust asked to us to not deduction of TDS. But he has no Certificate in FORM 13.
So could I deducted the TDS or not. Please advise.
Thanks
Bhoop Singh
We want to make payment to a Trust of Rs. 40000/-, but that Trust have an order sbjected with "Order of Registration Under Section 254/12AA, read with Section 12A of the income tax Act, 1961" from Income Tax that their income is not taxable i.e. income tax is exempted. and that basis Trust asked to us to not deduction of TDS. But he has no Certificate in FORM 13.
So could I deducted the TDS or not. Please advise.
Thanks
Bhoop Singh
CA PARAS BAFNA
(Expert)
01 July 2011
In my view, even though the income of trust is exempt U/s 11 -13 of the act, it has not been given exemption from TDS while income is received by it. Its certain income may be taxable. As such you are required to deduct TDS in the absence of Form 13.
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