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EASYOFFICE

TDS ON Rent to local authority

This query is : Resolved 

07 February 2022 Dear sir,
kindly advise, while paying rent under sec 194 I to panchayath, local authorities
what rate is applicable or if it is exempted - which documents to be collected, before payment

07 February 2022 IN THE CASE OF LOCAL AUTHORITIES AND STATUTORY AUTHORITIES..... REFERRED TO IN SEC. 10(20A/10(20), THERE WILL BE NO REQUIREMENT TO DEDUCT TAX AT SOURCE FROM INCOME BY WAY OF RENT IF THE PERSON RESPONSIBLE FOR PAYING IS SATISFIED ABOUT THE TAX EXEMPT STATUS UNDER CLAUSE (20) AND (20A)OF SECTION 10 ON THE BASIS OF A CERTIFICATE TO THIS EFFECT GIVEN BY THE SAID AUTHORITIES .

08 February 2022 TDS not applicable on local authorities and government authorities.
No need for any certificate.

As per Section 196 of Income tax act, 1961, no deduction of tax shall be made by any person from any sums payable to—

1. Government (i.e. State and Central Government)




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