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Tds on donation

raman (accountant) (54 Points)

26 December 2012

IS TDS IS APPLICABLE ON DONATION AND IF APPLICABLE THEN WAT IS THE LIMIT?

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CA Gaurav Ajit Potdar (Chartered Accountant) (846 Points)
Replied 26 December 2012

According to me TDS is applicable on expenditures, & donation is not an expenditure hence no TDS on Donation., if am wrong pls correct me..

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satish kumar voleti (A.C.A., (ICWAI)) (1686 Points)
Replied 26 December 2012

No as per income tax act, there is no provision which say for deduction of tax on donation paid.

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CMA RAVI (ASSISTANT MANGER - FINANCE) (478 Points)
Replied 26 December 2012

Originally posted by : raman
	IS TDS IS APPLICABLE ON DONATION AND IF APPLICABLE THEN WAT IS THE LIMIT?

Tds is not applicable on donation as cleared from the INCOME TAX ACT 1961

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vittakaushik (articles) (71 Points)
Replied 26 December 2012

There is no section in chapter XVII B of IT Act that attracts tds on donations.

Income received by trusts by way of donations are generally exempt from income tax.So logically when the income is exempt there is no question of tds.

CA. Praveen (Chartered Accountant) (119 Points)
Replied 27 December 2012

@ - vittakaushik

hey Dividend is also exempt on the hands of receiver u/s 10(34) but tax as to be paid before distribution so your logic is not holds good here.

But first sentence what you suggested is correct. :)

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vittakaushik (articles) (71 Points)
Replied 27 December 2012

Praveen rs

Dividend is exempt U/s 10(34) in the hands of shareholder as the company declaring the dividend pays corporate dividend tax U/s 115-O.Corporate dividend tax is not in the nature of TDS as it is not deducted from the amount payable to the shareholder and morever if you refer Sec 194 "TDS on dividend" tds is not applicable on payment of dividend by company U/s 115-O.

Dividend is exempt U/s 10(34) and Sec 194 says tds not required on payment of dividend under section 115-O.So logically when the income itself is exempt there should not be any tds.