Tax on educational institutions

This query is : Resolved

TRINATHA SENAPATI (Querist)
Follow

26 November 2014 Please advise me, if a college has a fixed deposit of Rs. 500000 in a bank for 5 years and bank has been deducted TDS on it Whether the TDS amount will be refunded fully or not

shivaji prasad bhimavarapu

shivaji prasad bhimavarapu (Expert)
Follow

27 November 2014 The interest is taxable under the head " Income from other sources". What about the business income and other heads of income? Generally, many educational institutions are registered as Non-Profit Organization.If that is the case,the income from business would be NIL. If the College does not have any other income and the total income is below the taxable limits, the TDS can be refunded.

Rupesh Jain

Rupesh Jain (Expert)
Follow

27 November 2014 it is depend on the income tax on the college income. if the college are running under trust or edu. society then tax will exempt otherwise you to pay tax after deducting the TDS amount.

Upgrade to CAclubindia Pro. Subscribe Now!