This discussion clarifies that NGOs must deduct Tax Deducted at Source (TDS) under Section 94C when engaging individuals for work contracts, such as building repairs or hospital renovations, as part of their welfare activities. The charitable nature of the organisation does not exempt them from complying with these TDS regulations.
17 February 2025
Sir, if an NGO receives funds from an organization for welfare works, and in this context, they give work contracts to individuals for tasks like repairing school buildings or renovating hospitals, the NGO is required to deduct TDS under Section 94C from those receiving the work contracts."