Is a trust(employee provident fund trust) which is registered under income tax and received exemption under section 10(25), is liable to deduct TDS on interest paid to its members (if the amount of interest is more than ₹ 10000)? If it is exempt from deducting TDS under which clause it can claim such exemption?
TDS on interest paid by PF trust
VENKAT S
Employee Provident Fund Trust Must Deduct TDS on Interest Over 10,000; No Exemption Under Section 10(25). A query was raised regarding whether an employee provident fund trust, registered under income tax and exempt under section 10(25), is required to deduct TDS on interest paid to its members if the interest exceeds 10,000. The response indicated that no exemption exists for the trust from deducting TDS on such interest payments. (AI Summary)