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Is it neccessary to obtain tds exemtpion cert. by those exem

bujjulu (e-TDS + IT return filer Hyderabad) (731 Points)

12 July 2013

Is it necessary for The establishments exempted U/s 10(23C) to obtain a certificate U/s 197 / 197A.

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6 Replies

CA Pooja Agarwal (Chartered Accountant) (3228 Points)
Replied 12 July 2013

yes so that u can claim refund of the same

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bujjulu (e-TDS + IT return filer Hyderabad) (731 Points)
Replied 12 July 2013

I understand I did not post the question clearly.

the question is Universities / Research organisations like CSIR etc do not want TDS to be deducted on their deposits.

so to approach bank and ask not to deduct TDS should these organisations necessarily approach Income Tax Dept. and obtain the exemption certificates .(obtained in that year.)

OR use commonsense that the organisations who are not assessable under income tax act, can't lose TDS on their deposits.

CA Pooja Agarwal (Chartered Accountant) (3228 Points)
Replied 12 July 2013

yes they should obtain the exemption certificate and submit the same to the bank so that no tds is deducted

bujjulu (e-TDS + IT return filer Hyderabad) (731 Points)
Replied 13 July 2013

for ready reference I am posting circular 4/2002. (as per that it is not required) But...

Circular : No. 4/2002, dated 16-7-2002.

". Whether prescribed self-declaration under section 197A can be submitted by entities whose income is

exempt under section 10

1. Subsequent to the amendment to section 197A made by the Finance Act, 2002 whereby a new sub-section

(1B) has been inserted with effect from 1st June, 2002, representations have been received seeking clarification

whether the prescribed self-declaration under the said section can be submitted by entities exempt from tax

under section 10 even if the payments referred to in sub-section (1A) to be made to them exceed the threshold

limit not subject to tax.

2. This matter has been examined by the Board. It has been decided that in case of those funds or authorities or

Boards or bodies, by whatever name called, whose income is unconditionally exempt under section 10 of the

Income-tax Act and who are statutorily not required to file return of income as per section 139 of the Incometax

Act, there would be no requirement for tax deduction at source since their income is anyway exempt under

the Income-tax Act. The institutions whose income is unconditionally exempt under section 10 and who are

statutorily not required to file return of income as per the provisions of section 139 are :

(i) “local authority”, as referred to in the Explanation to clause (20);

(ii) Regimental Fund or Non-public Fund established by the armed forces of the Union referred to in clause

(23AA);

(iii) Fund, by whatever name called, set up by the Life Insurance Corporation of India on or after 1st August,

1996, or by any other insurer referred to in clause (23AAB);

(iv) Authority (whether known as the Khadi and Village Industries Board or by any other name) referred to in

clause (23BB);

(v) Body or authority referred to in clause (23BBA);

(vi) SAARC Fund for Regional Projects set up by Colombo Declaration referred to in clause (23BBC);

(vii) Secretariat of the Asian Organisation of the Supreme Audit Institutions referred to in clause (23BBD) till

assessment year 2003-2004;

(viii) Insurance Regulatory and Development Authority referred to in clause (23BBE);

(ix) Prime Minister’s National Relief Fund referred to in sub-clause (i), Prime Minister’s Fund (Promotion of

Folk Art) referred to in sub-clause (ii), Prime Minister’s Aid to Students Fund referred to in sub-clause

(iii), National Foundation for Communal Harmony referred to in sub-clause (iiia), any university or other

educational institution referred to in sub-clause (iiiab) and any hospital or other institution for the reception

and treatment of persons as referred to in sub-clause (iiiac) of clause (23C);

(x) Credit Guarantee Fund Trust for Small Scale Industries referred to in clause (23EB) till assessment year

2006-2007;

(xi) Provident fund to which the Provident Funds Act, 1925 (19 of 1925) referred to in sub-clause (i),

recognised provident fund referred to in sub-clause (ii), approved superannuation funds referred to in subclause

(iii), approved gratuity fund referred to in sub-clause (iv) and funds referred to in sub-clause (v) of

clause (25);

(xii) Employees’ State Insurance Fund referred to in clause (25A);

(xiii) Corporations referred to in clause (26BB);

(xiv) Boards referred to in clause (29A).

CHANCHAL PAUL (Finance Professional) (23 Points)
Replied 26 November 2013

My question is , West Bengal Council of secondary education demand exemtion of TDS on royalty from publishers. they cliam no need to deduction , no need to return filing u/s 139 . they have not given to us 197 certificate . please clerify me.

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CHANCHAL PAUL (Finance Professional) (23 Points)
Replied 26 November 2013

My question is , West Bengal Council of secondary education demand exemtion of TDS on royalty from publishers. the cliam no need to deduction , no need to return filing u/s 139 . they have not given to us 197 certificate . please clerify me.