TDS Exempted On 7 Types Of Transactions

The Central Board of Direct Taxes (CBDT), on June 17, 2016, vide notification no. 47/2016/ F. No. 275/53/2012 – IT(B), notified that no deduction of tax under Chapter XVII of the Income tax Act, 1961 shall be made on the payments of the nature specified below, in case such payment is made by a person to a bank listed in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934), excluding a foreign bank, or to any payment systems company authorized by the Reserve Bank of India under Sub-section (2) of Section 4 of the Payment and Settlement Systems Act, 2007 (51 of 2007):

1. .Bank guarantee commission;
2. .Cash management service charges;
3. Depository charges on maintenance of demat accounts;