- Income of such entities is unconditionally exempted u/s 10 of Income Tax Act, 1961, and
- These entities are not required to file Income Tax Return
Section 10(26BBB) (w.e.f. 1st Apr-15) has unconditionally exempted the income of a corporation established by a Central, State or Provincial Act for the welfare and economic upliftment of ex-servicemen being the citizens of India. The corporations covered under this section are also statutorily not required to file return of income as per Section 139 of the Act. Since, the income of is exempt, there is no point in TDS deduction. Hence, now onwards, TDS not to be deducted from payments made to such corporations.
Full text of circular is given below: