applicability of tds

[sid chakravarthy]

 Sir ,

                       Our Municipal Corporation is paying an amount of Rs 22000.00 per month for a period of 99 years to Commandant ,APSP II batalian for site allottment for the construction of a over head water tank for public porpose.

                       In this connection, I would like to know whether it attracts income tax under TDS and if so what is the rule position.

urs

chakravarthy s.n.

AI Summary

TDS Not Applicable on Payments to APSP II Battalion Commandant if Income Exempt Under Section 10(23AA) of Income Tax Act. A query was raised regarding the applicability of Tax Deducted at Source (TDS) on payments made by a Municipal Corporation to a Commandant of APSP II Battalion. The payments, amounting to Rs 22,000 monthly for 99 years, are for site allotment for constructing an overhead water tank. The response indicated that if the Commandant's income is exempt under Section 10(23AA) of the Income Tax Act, then TDS would not be applicable, as such exemptions typically apply to armed forces.