applicability of tds, Income Tax

[sid chakravarthy]

 Sir ,

                       Our Municipal Corporation is paying an amount of Rs 22000.00 per month for a period of 99 years to Commandant ,APSP II batalian for site allottment for the construction of a over head water tank for public porpose.

                       In this connection, I would like to know whether it attracts income tax under TDS and if so what is the rule position.

urs

chakravarthy s.n.

Posts / Replies

[CA GOPALJI AGRAWAL]

You have to see whether income of Commandant APSP is exempt  u/s 10 (23AA). If yes, then no tax would be deducted. Normally such armed forces are exempt.