Income tax
Kumar
(Querist) 04 April 2018
This query is : Resolved
Sir Trade unions are exempted from payment of income tax under section 10(24). Can Banks give exemption from TDS recovery on interest earned by Trade unions based on this section
Ms.Usha Kapoor
(Expert) 21 April 2018
9, 2016 at 6:59 pm
Registered Trade Union under Act 1926 is registered on 1959. Regd. Trade Union has company fixed deposit. The interest income exceeds Rs.2,50,000/- per year. The Fixed Deposit company has asked as per CBDT Circular u/s 139(4C) of IT Act, Trade Union has to file the return of Income & Trade Union can not submit the 15G Form, hence the benefit of CBDT circulat is not available to the regd. trade union.
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Ms.Usha Kapoor
(Expert) 21 April 2018
cAs per section 10(24) serial no. 57 of IT Act Trade Union are exempted for any amount. But the Fixed Deposit Company replied to us i.e. to get the benefit under sec 10(24) will be available only if a specific exemption letter is issued from IT dept.
under Income Tax act, showing the statement whether trade union has to take exemption certificate from assessing officer u/s 197(1) for the interest income receive exceeding Rs.2,50,000/- per year.Then interest earned by them on company fixed deposits will not be TDS deducted by Bank.Otherwise interest earned on company fixed deposits will continue to be deducted by TDS by Bank.
