Tds u/s 194IB ..

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This discussion clarifies whether TDS under section 194IB is applicable when making payments exceeding Rs 50,000 monthly to a Dharmshala. The consensus is that if the payment is genuinely a donation ('Bhet') and the Dharmshala has provisional approval for 80G exemption, TDS is not required. The individual is claiming the 80G deduction, and donations to such approved trusts are generally exempt from TDS.

H Thakar

H Thakar (Querist)
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15 March 2023 i am transferring every month a sum above Rs 50,000/- to dharmshala which has provisional approval of exemption u/s 80G (5) of Income tax act.

The above sum is paid as accommodation charges of staff members every month. And the same is shown as "BHET" (i.e. Donation) in the receipt.

I also claim deduction u/s 80G.

I just want to know whether i should deduct TDS u/s 194IB @ 5% (Being Individual)

Please advice

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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15 March 2023 If the payment to dharmshala is BHET, and also if you are claiming the amount as donation; no need to deduct TDS u/s. 194IB of IT act.

H Thakar

H Thakar (Querist)
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15 March 2023 Thanks a lot for prompt response
Yes. As it is mentioned in receipt regard provisional approval, i am claiming the same while filing the returns.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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15 March 2023 Donations to such trusts are not subject to TDS...

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