Requirement of tax deduction at source in case of entities whose income is exempted under Section 10 of the Income-tax Act, 1961 - Exemption thereof

Tax deduction at source exemption clarified: listed Section 10 entities need no TDS where income is unconditionally exempt and non-filing applies.

No tax deduction at source is required on payments to entities whose income is unconditionally exempt under Section 10 of the Income-tax Act and who are not statutorily required to file returns; the Board issues a revised list adding eligible entities and removing those whose exemption or non-filing status no longer applies, and clarifies that the circular supersedes earlier guidance.