TDS for Lease rent to BSNL

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shravan (Querist)
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29 July 2009 Hello I would like to know if TDS is applicable u/s 194 I for Rent on lease lines provided by BSNL. I have hear that govt. entities are exempt from TDS. Please let me know the section which gives that exemption

Shyam Lal Naik

Shyam Lal Naik (Expert)
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30 July 2009 Government Agency & Government Entities stand on different footing.

So far BSNL is concerned, there is no exemption from TDS and / or Income Tax.

Since, possession is still retained by BSNL, it is not in the nature of rent in the strict sense of the term.

However, you may deduct TDS to avoid future disputes.

Please seek more opinion as far as applicability of Sec 194 I.