Tds on rent paid to university

Dear Ma'am

Case -1 " University is registered as Society/Trust" If university is registerd entity and hold a PAN no. from income tax Department

(i) If payment made by body corporate (company/LLP) to an university require to deduct TDS under section 194I

(ii) if payment made by an individual not require to deduct TDS (subject to condition under section 44AB of income tax act 1961).

Note:-  If Individual is liable to Tax audit under section 44AB of income tax act 1961 require to deduct TDS on above mentioned amount.

Hi Shruthi,

Law does not specifically exempts University for deducting TDS when the University is the receipient.  So it is better to deduct tax.  But please be ready for refund payment, University will not agree for TDS, due to their increased administrative work, they will ensure that they are paid fully !!!  I have experience in past while deducting TDS to IIT.

Regards

Pradeep S

Hi.

Just because the university income is exempted u/s 10, there is no exemption to the payer of rent from from deducting TDS. Further, university can make an application under 197 for nil deduction of tax....