Tds related...............
This query is : Resolved
Satnam singh
(Querist)
03 December 2011
Dear reader,
we have to deduct TDS in case of interest and royalty. is there is any provision in which we have relaxation of deduct TDS when we pay royalty and interest to State Government. Please reply as soon as possible it is very urgent
we have to deduct TDS in case of interest and royalty. is there is any provision in which we have relaxation of deduct TDS when we pay royalty and interest to State Government. Please reply as soon as possible it is very urgent
Aijaz Shaikh
(Expert)
03 December 2011
93[Interest or dividend or other sums payable to Government, Reserve Bank or certain corporations.
196. Notwithstanding anything contained in the foregoing provisions of this Chapter, no deduction of tax shall be made by any person from any sums payable to—
(i) the Government, or
(ii) the Reserve Bank of India, or
(iii) a corporation established by or under a Central Act which is, under any law for the time being in force, exempt from income-tax on its income, or
(iv) a Mutual Fund specified under clause (23D) of section 10,
where such sum is payable to it by way of interest or dividend in respect of any securities or shares owned by it or in which it has full beneficial interest, or any other income accruing or arising to it.]
Conclusion
TDS provision doesnt apply to payment to government.
196. Notwithstanding anything contained in the foregoing provisions of this Chapter, no deduction of tax shall be made by any person from any sums payable to—
(i) the Government, or
(ii) the Reserve Bank of India, or
(iii) a corporation established by or under a Central Act which is, under any law for the time being in force, exempt from income-tax on its income, or
(iv) a Mutual Fund specified under clause (23D) of section 10,
where such sum is payable to it by way of interest or dividend in respect of any securities or shares owned by it or in which it has full beneficial interest, or any other income accruing or arising to it.]
Conclusion
TDS provision doesnt apply to payment to government.
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