Tax deduction exemption for entities with unconditionally exempt income-no TDS required even if payments exceed the threshold. Where a recipient's income is unconditionally exempt under the income-tax law and the recipient is statutorily not required to file a return, there is no requirement to deduct tax at source on payments to that recipient even if payments exceed the prescribed threshold; the circular identifies specified categories of funds, authorities, boards and bodies that qualify for this non-application of TDS.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Tax deduction exemption for entities with unconditionally exempt income-no TDS required even if payments exceed the threshold.
Where a recipient's income is unconditionally exempt under the income-tax law and the recipient is statutorily not required to file a return, there is no requirement to deduct tax at source on payments to that recipient even if payments exceed the prescribed threshold; the circular identifies specified categories of funds, authorities, boards and bodies that qualify for this non-application of TDS.
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