Is TDS exempted when Payment to a Trust

Save Share

This query is : Resolved

bhoop (Querist)
Follow

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

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
Follow

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.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now