Avail Benefit of Circular no 4/2002 dated dated 16/7/2002 in case of certain Educational Institutions and others for Non deduction of TDS
Funds or authorities or Boards or bodies, by whatever name called, whose income is unconditionally exempt under section 10 of the Income-tax Act and who are statutorily not required to file return of income as per section 139 of the Income-tax Act, there would be no requirement for tax deduction at source since their income is anyway exempt under the Income-tax Act.The Board has clarified this vide Circular no. 4/2002 dated 16/7/2002 providing relief to no. of institutions who has to file return just to claim refund of their TDSdeducted despite of thr fcat they were not suppose to file the returns. Circular for your reference is reproduced here under:-
1183.
Whether prescribed self-declaration under section 197A can be submitted by
entities whose income is exempt under section 10
1.
Subsequent to the amendment to section 197A made by the Finance Act, 2002
whereby a new sub-section (1B) has been inserted with effect from 1st June,
2002, representations have been received seeking clarification whether the
prescribed self-declaration under the said section can be submitted by entities
exempt from tax under section 10 even if the payments referred to in sub-section
(1A) to be made to them exceed the threshold limit not subject to tax.
2.
This matter has been examined by the Board. It has been decided that in case of
those funds or authorities or Boards or bodies, by whatever name called, whose
income is unconditionally exempt under section 10 of the Income-tax Act and who
are statutorily not required to file return of income as per section 139 of the
Income-tax Act, there would be no requirement for tax deduction at source since
their income is anyway exempt under the Income-tax Act. The institutions whose
income is unconditionally exempt under section 10 and who are statutorily not
required to file return of income as per the provisions of section 139 are
:
(i)
“local authority”, as referred to in the Explanation to clause
(20);
(ii)
Regimental Fund or Non-public Fund established by the armed forces of the
Union referred to in clause (23AA);
(iii)
Fund, by whatever name called, set up by the Life Insurance Corporation
of India on or after 1st August, 1996, or by any other insurer referred to in
clause (23AAB);
(iv)
Authority (whether known as the Khadi and Village Industries Board or by
any other name) referred to in clause (23BB);
(v)
Body or authority referred to in clause
(23BBA);
(vi)
SAARC Fund for Regional Projects set up by Colombo Declaration referred
to in clause (23BBC);
(vii)
Secretariat of the Asian Organisation of the Supreme Audit Institutions
referred to in clause (23BBD) till assessment year
2003-2004;
(viii)
Insurance Regulatory and Development Authority referred to in clause
(23BBE);
(ix)
Prime Minister’s National Relief Fund referred to in sub-clause
(i), Prime Minister’s Fund (Promotion of Folk Art) referred to in
sub-clause (ii), Prime Minister’s Aid to Students Fund referred to in
sub-clause (iii), National Foundation for Communal Harmony referred to in
sub-clause (iiia), any university or other educational institution
referred to in sub-clause (iiiab) and any hospital or other institution
for the reception and treatment of persons as referred to in sub-clause
(iiiac) of clause (23C);
(x)
Credit Guarantee Fund Trust for Small Scale Industries referred to in
clause (23EB) till assessment year 2006-2007;
(xi)
Provident fund to which the Provident Funds Act, 1925 (19 of 1925)
referred to in sub-clause (i), recognised provident fund referred to in
sub-clause (ii), approved superannuation funds referred to in sub-clause
(iii), approved gratuity fund referred to in sub-clause (iv) and
funds referred to in sub-clause (v) of clause
(25);
(xii)
Employees’ State Insurance Fund referred to in clause
(25A);
(xiii)
Corporations referred to in clause (26BB);
(xiv)
Boards referred to in clause (29A).
Circular
:
No. 4/2002, dated 16-7-2002.
No comments:
Post a Comment