New TDS Rates applicable to NGOs after COVID-19

Applicability of TDS to NGOs

It is a misconception that TDS not applicable to NGO because NGO is exempt from Tax if registered u/s 12AA. TDS is liability for NGOs to deduct from the certain payments made and deposited within time to the Government account. So NGO is not exempt from deducting TDS only because registered u/s 12AA.

TDS Transactions

There are many transactions which covered by TDS provisions, however in NGO mostly following transactions are usually takes place on which TDS is applicable. Let us check it out.

  • TDS on salary
  • TDS on Consultancy
  • TDS on Contract
  • TDS on Technical Services
  • TDS on Rent

New TDS rates after COVID-19

Because of COVID-19, along with many economic reliefs, Government has decided to slash the TDS rates. For New TDS rates, watch below video.

Did I miss something?

Hope this will help you in your NGO, if you have any question,  you can ask here or chat with us. Also your comments are welcome on the above subjects.

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