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Tds

Ajaya pandey (Article assistant) (54 Points)

22 November 2016

Is TDS deducted on payment made to Government companies?

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (182828 Points)
Replied 23 November 2016

Section 196 of Income Tax Act:

Notwithstanding anything contained in the foregoing provisions of this Chapter, no deduction of tax shall be made by any person from any sums payable to—

(i) the Government, or

(ii) the Reserve Bank of India, or

(iii) a corporation established by or under a Central Act which is, under any law for the time being in force, exempt from income-tax on its income, or

(iv) a Mutual Fund specified under clause (23D) of section 10, where such sum is payable to it by way of interest or dividend in respect of any securities or shares owned by it or in which it has full beneficial interest, or any other income accruing or arising to it.