Dear Sir/Madam,
An educational institute which is governed by "Trust" which is exempted from Income Tax having surplus fund in their hand have decided to make the Term deposit/ Fixed deposit say for 15-30 days but Bankers are deducting TDS on Interest due/paid against the said TDR/FDRs. Trustees decided to take exemption certificate in the name of Institute U/s. 197 of the Income Tax Act , but I.Tax department is allowing the same based on the calculation of Interest earned during Quarter & TDS deducted by Banks which seems not correct to get the certificate in each Quarter.
My simple question in this context is that " if the Institute is exempted under Income Tax Act" then why the I.Tax Commissioner can not give the Exemption certificate U/s. 197 for Interest Income against the F/D etc. without monitory ceiling (without calculating the expected Interest income & TDS thereon)????
Expecting the suggestion in the same matter.
Thanks & regards.
VIAJY GUPTA
(Kolkata)
CAclubindia
