Validity of circular 4/2002

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This query is : Resolved

CA Amit Jaiswal (Querist)

24 February 2012 Hi Experts,
Can you please clarify me the current status of circular no 4/2002 which states that no TDS deduction is required to be made for the CERTAIN SPECIFIED assessees who are EXEMPT FROM FILING OF RETURN.

As of now every university/college/hospital is required to mandatorily file the return of Income by virtue of section 139.

So, Please clarify my doubt regarding validity/current status of circular 4/2002.

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

24 February 2012 Filing of Return is necessary to claim the exemption available on income. It does not mean that those, who are filing income tax return should always have taxable income.
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For TDS Non-Deduction circular referred in the query has yet not been withdrawn and as such can be said to be still in effect.
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CA Amit Jaiswal

CA Amit Jaiswal (Querist)

25 February 2012 Thanks sir,
But can u please let me know that In case of Hospitals/Schools/Collages whose income is exempt u/s 10, there is no need to deduct TDS.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)

25 February 2012 To avail the exemption of CBDT Circular 4/2002 two conditions are to be satisfied viz.,

i)income is unconditionally exempt

ii)and there is no requirement of filing return u/s 139.

Moreover certain entities specified in the circular are only entitled ,for the benefit of the said circular, which does not cover hospitals/colleges/schools.

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