Govt.depts-not assesable don't want tds -don't provide certi

bujjulu (e-TDS + IT return filer Hyderabad)   (729 Points)

28 June 2013  

Govt.Depts. who are depositing their surplus funds do not want any TDS to be deducted AS THEY DO NOT HAVE ANY PAN No.-THEY DON't HAVE ANY BECAUSE THEY ARE NOT ASSESSABLE TO TAX.     tHIS IS the logic.

Is it acceptable.

Apart from the other provisions - Is there any provision which says that TDS should not be deducted from the deposits of those who are not assessable to tax like heart(including those exempted U/s 35, 35AB, 35AC(like CSIR),  35CCA(rural Devt.)