19 October 2013
Whether TDS will be deducted on rent paid to muncipality for occqupying corporation building,the income for which is exempt for muncipality as per sec.10(20) of IT Act??
In the case of the local authorities and the statutory authorities, there will be no requirement to deduct income-tax at source from income by way of rent if the person responsible for paying it is satisfied about their tax-exempt status under clause (20) or (20A) of section 10 on the basis of a certificate to this effect given by the said authorities. [Circular No.699 dt.30-1-1995].
CAclubindia
