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Income tax exemption order

Ravishankar K (Accountant) (461 Points)

18 March 2013

Dear Friends,

One of our training partner has submitted this exemption copy for availing exemption from deduction of TDS under Sec 194J (Prof Services) But from the exemption copy I am not able to get anything, kindly go through the exemption order copy and advise as to what the ORder is issued to the party.

Regards,

Ravi

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5 Replies

Dhawal Mohnot (Practicing) (449 Points)
Replied 18 March 2013

From what i understand, application has been made U/s.197 for lower or no deuction of TDS along with the proof of exemption U/s.80G.

What is it that you are not able to get?

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Ravishankar K (Accountant) (461 Points)
Replied 18 March 2013

Dear Sir,

As per normal circumstances I will deduct TDS @ 10% under Sec 194J so based on this exemption certificate can i stop TDS deduction? Also what this exemption certificate conveys , does it approve the exemption and that too for FY 13-14. Since I am going to make payment in this month. In the order nowhere it is mentioned that the Trust is exempt from TDS deductions. this is my query.

Dhawal Mohnot (Practicing) (449 Points)
Replied 18 March 2013

Application U/s.197 is for non or lower TDS deduction for self (i.e., to receive income without deduction of TDS) and not while making payments. So while making payments you have to dedcut TDS and remit the same to the department.

A trust is deemed to be approved in perpetuity, Sec 80G(VI), hence if it is approved upto 31st March 2011, it is deemed to be approved in perpetuity as amended by finance act 2009.