The Central Board of Direct Taxes (CBDT) had earlier issued Circular No. 4/2002 and Circular No. 7/2015 having details of entities whose income is unconditionally exempted under section 10 of Income Tax Act and who are also statutorily not required to file return of income as per section 139 of the act, there would be no requirement of tax deduction at source(TDS)from payments made to them since their income is anyway exempted from tax under the act.
Examination of the eligibility of entities for exemption from TDS on the principle of unconditional exemption and no requirement to file return revealed that the Circulars No. 4/2002 and 7/2015 are required to be updated to make certain changes,
In view of the above, a revised list of entities exempted from TDS has been drawn by adding entities to the entities mentioned in Circular No. 4/2002 and Circular No. 7/2015 and removing entities from the list of existing entities eligible for exemption from TDS.
Click here to read the complete circular with the list.
we have a PI Mess account of defence persons in our branch. they want to deposit a sum of rs.2000000/- lakhs as fixed deposit in our branch.
Please let me know whether the TDS effect to this account or any exemption for that.