Fwd: MMM- I TAX= CIRCULAR NO 7 for Corporations set up for welfare
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From: MISSION IS MORE IMPORTANT <lucknowca_reinvented@...>
Date: Aug 5, 2008 3:28 PM
Subject: MMM- I TAX= CIRCULAR NO 7 for Corporations set up for welfare
To: lucknowca_reinvented <email@example.com>
CBDT has issued Circular No. 7 through which corporations which are set up for the welfare and economic upliftment of ex-servicemen and whose income qualifies for exemption from income-tax have been exempted from TDS/TCS on their receipts.kind regards,Teamlucknowca_reinventedMISSION IS MORE IMPORTANT THAN MANReach us at: +1-415-912-1569
Circular No. 07/2008
Government of India
Ministry of Finance
Department of Revenue
Central Board of Direct Taxes
New Delhi, the 1st. August,2008
Subject:-Order under section 119(1) of the Income-tax Act, 1961 regarding exemption
from the TDS provisions under Section 197 read in conjunction with Section
10(26BBB) of Income Tax Act, 1961.
In exercise of the powers conferred under sub-section (1) of section 119 of Incometax
Act, 1961, Central Board of Direct Taxes hereby directs that corporations which are
established by a Central, State or Provincial Act for the welfare and economic upliftment of
ex-servicemen and whose income qualifies for exemption from Income-tax u/s. 10(26 BBB)
of the Income Tax Act, 1961, are hereby given exemption from Tax Deduction/Collection at
Source on their receipts..
2. This exemption shall not absolve such organisations from their statutory obligations
of deducting TDS on all contractual payments made by them to other parties like subcontractors
3. This exemption shall be valid for 5 years from the Assessment Year 2009-2010.
4. After the end of 3 years, all the Chief Commissioners of Income-tax will send their
feedback to the CBDT on the benefits and/or shortcomings observed in the working so as to
enable a review and further decision by the Board in the matter.
Director ( Budget)
1. Chairman, Members and other Officers in CBDT of the rank of Under Secretary and
2. All Chief Commissioners and Directors General of Income-tax. Each CIT(TDS) may
forward a copy of this order to such corporation under their charge.
3. 100 copies to DIT(RSP&PR) for printing in the quarterly tax bulletin and for
circulation as per their usual mailing list.
4. DIT(TDS), DIT(Systems), DIT(Recovery), DIT(DOMS), DIT(Vigilance), DIT(IT).
5. Comptroller and Auditor General of India (40 copies).
6. Guard File.
CA Paras Chhajed
FCA, DISA (ICA)
Ph. (07744) 224246, 403903