Receipts by Ex-servicemen's Corporation – exempted from TDS – CBDT directive
CBDT has exempted Central/State established Corporations for the welfare and economic uplift of ex-servicemen and whose income qualifies for exemption from Income-tax u/s. 10(26 BBB) of the Income Tax Act, 1961, from Tax Deduction/Collection at Source on their receipts. This is valid for three years.
However this exemption will not absolve such organisations from their statutory obligations of deducting TDS on all contractual payments made by them to other parties including sub-contractors etc.
CBDT Circular No. 7/2008, Dated: August 1, 2008