1011. Exemption from requirement of deduction of income-tax at source on payment of income to Ramakrishna Math and Ramakrishna Mission whose income is exempt under section 10(23C)(iv)
Circular No. 3/2002 was issued by the Central Board of Direct Taxes on 28 June 2002. Its subject is 1011. Exemption from requirement of deduction of income-tax at source on payment of income to Ramakrishna Math and Ramakrishna Mission whose income is exempt under section 10(23C)(iv).
This grants an exemption or a relief under a provision that allows one. Read the conditions attached: an exemption notification is construed strictly, and a condition missed is the exemption lost.
Allows three kinds of income to be paid to Ramakrishna Math and Ramakrishna Mission without deduction of tax at source, because their income is exempt under sub-clause (iv) of section 10(23C). The three are interest on Central and State Government securities, interest other than interest on securities, and income in respect of units of a mutual fund specified under section 10(23D) or of the Unit Trust of India. The relief is expressed to apply from the then current financial year.
Representations had been received seeking exemption from deduction of tax at source under sections 193, 194A and 194K on payments of such income to these two institutions.
1011. Exemption from requirement of deduction of income-tax at source on payment of income to Ramakrishna Math and Ramakrishna Mission whose income is exempt under section 10(23C)(iv)
1. Representations have been received for grant of exemption from the requirement of deduction of income-tax at source under sections 193, 194A and 194K of the Income-tax Act on the payment of incomes to Ramakrishna Math and Ramakrishna Mission whose income is exempt under sub-clause (iv) of section 10(23C) of the Income-tax Act, 1961.
2. The matter has been examined by the Board and it has been decided that in the case of Ramakrishna Math and Ramakrishna Mission whose income is exempt under sub-clause (iv) of section 10( 23C) of the Income-tax Act, the incomes by way of (i ) interest on securities of the Central and State Governments, (ii) interest other than ‘income by way of interest on securities’, and (iii) income in respect of units of a Mutual Fund specified under section 10(23D) or of the Unit Trust of India may be paid to the Ramakrishna Math and Ramakrishna Mission without deduction of income-tax at source. The provisions of this Circular shall be applicable from the current financial year.
Circular : No. 3/2002, dated 28-6-2002.
When a paying bank or mutual fund asks for authority not to deduct, or in a proceeding under section 201 against a payer who made payment without deduction.
Source: the Income Tax Department’s own published text — its page for this instrument.