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tds incase of govt. institutions

pramod jain (dt manager accounts) (33 Points)

31 January 2010

dear friends

please let me know the law regarding deduction of tds incase of commissions and other payments made to government organisations which are liable to tds otherwise. as per my understanding the law under the provisions of sections realting to tds say " payment made to any person.......". please specify exact provions/notifications which clarify the doubt.

rgds

pramod

(pkpulse @ rediffmail.com)

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3 Replies

Shiva Kumar (CA Final) (208 Points)
Replied 31 January 2010

As per Section 196 - No need to deduct any tax

Shiva.

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.]