Tds exemption for trust u/sec 12aa of it act

TDS 40496 views 18 replies

Hi,

If the transaction between the 2 NGO's is in the nature of free training expenses and does not involve any fees for the same and only reimbursement of expenses is there, then there is no income earned and hence no need to deduct TDS. The question of TDS does not even arise in that case.

In case, there was a fees involved in the training service, then if the training service was within the scope of the charitable services of the NGO and hence falls under charitable activitites, then also, NO TDS applicable in such case.

Replies (18)

Hi,

If the transaction between the 2 NGO's is in the nature of free training expenses and does not involve any fees for the same and only reimbursement of expenses is there, then there is no income earned and hence no need to deduct TDS. The question of TDS does not even arise in that case.

In case, there was a fees involved in the training service, then if the training service was within the scope of the charitable services of the NGO and hence falls under charitable activitites, then also, NO TDS applicable in such case.

TDS deduction liability on payment to trust. No specific exemption to trust from TDS Deduction.

if turst open a bank account or invest in FD so can bank deduct TDS on   their income by bank account or fd interest
 

Yes. The bank will deduct TDs if the interest on FD exceeds Rs 10000


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