TDS - Trust

This query is : Resolved

Raghavendrarao Wulligundam (Querist)
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03 April 2024 Ours is a Trust. We got donation from a reputed company but they deducted TDS of Rs. 50,000 under section 194 C for the FY 2022-23. Our Stat Auditor explained that our Trust cannot claim the TDS as we need to show that as income under section 194 C and disclaimed that TDS amount. We gave Utilisation Certificate to the Donor Company to the amount net of TDS. Now the Donor company asking us to return the TDS amount they deposited under our trust. BUt we did not claim that TDS. How to solve this issue?

Nikhil Kaushik

Nikhil Kaushik (Expert)
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03 April 2024 you could have shown this as receipt in connection to the activities of the trust and still claimed refund.

as far as the donor is concerned, you cannot resolve this. Just inform the donor that the TDS has not been received back from the tax authorities. If it is received, you will return. thats all.