TDS for Societies registered under 1860 act

[Guest]

We are registered under society act 1860 and have 12A and 80G certificates. We are now doing environment awareness streetplays organized by another ngo. How much TDS they should deduct, if the payment is above Rs 40,000/- ?

Pls respond

ujaidr at gmail com

[Guest]

Also, can this work be considered contractual and be covered under section 194c of income tax act?

[DEV KUMAR KOTHARI]

Your institution is carrying activity in pursuit of object of society and not for profit or gains. The activity is in area of  public  service for benefit of public at large by creating environment awareness  through street plays organized by another ngo.Your income will be exempt and not taxable. Therefore, there should be no TDS as per an old circular (you can  search on this website). To play safe, you apply to your AO and obtain a certificate for nil TDS.

[Guest]

Happy Deepawali and thank you for your response Dev ji. I am now trying to search it. Meanwhile, that organization deducted 10% tds on a payment of 45k. We will also try to get in touch with the AO, but you know how it goes with the IT officers..

AI Summary

TDS exemption for charitable societies carrying out public benefit activities may apply; seek a nil deduction certificate to avoid withholding. Where a society registered under the Societies Act with 12A and 80G certificates carries out activities in pursuit of its charitable object for public benefit, those receipts are treated as exempt and no TDS should be deducted; obtain a nil deduction certificate from the assessing officer to prevent or reverse withholding.