I was told that the religious trust was advised that it was exempt from the provisions of TDS on payments made by it. So is there any provision in Income Tax or other laws or case laws that would permit it to be exempt from TDS provisions in Income Tax law?
Notwithstanding anything contained in this act, no deduction of tax shall be made from such
specified payment to such institution, association or body or class of institutions, associations or bodies as
may be notified by the Central Government in the Official Gazette, in this behalf.]
In section 197A of the Income-tax Act, for sub-section (1A), the following sub-section shall be substituted with effect from the 1st day of July, 1995, namely:—
"(1A) Notwithstanding anything contained in section 194A or section 194K, no deduction of tax shall be made under either of the said sections in the case of a person (not being a company or a firm), if such person furnishes to the person responsible for paying any income of the nature referred to in section 194A or section 194K, as the case may be, a declaration in writing in duplicate in the prescribed form and verified in the prescribed manner to the effect that the tax on his estimated total income of the previous year in which such income is to be included in computing his total income will be nil'".