TDS exemption on resale of software


This query is : Resolved 

10 July 2026 Kindly update what we can mention on our sale invoice in present tax year for no tds deduction in case of software sold without any modification as per new income tax code, As in and till previous income tax code we all mention on invoice the notification number “CBDT Notification No. 21/2012 eliminates multi-level TDS deductions on standardized software. It exempts buyers from deducting TDS under Section 194J if tax was already deducted on an earlier transfer and the software is resold without modification, provided a PAN-backed declaration is obtained from the seller.”
Kindly share the information to mention on invoice as per new income tax code

10 July 2026 "NO TDS DEDUCTION REQUIRED
We hereby declare that the software supplied under this invoice is standard, off-the-shelf software sold without any modifications or customizations. In terms of Section 393 of the Income Tax Act, 2025 and CBDT Notification No. 21/2012, no tax is deductible at source on this transaction.
Tax has already been duly paid/deducted on the previous transfer of this software package. This transaction represents a subsequent resale without modification.


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