Businesses need not deduct TDS on share buy via exchanges: CBDT

Businesses buying shares or commodities traded through recognised stock or commodity exchanges for any value even above ~50 lakh will not be required to deduct TDS on the transaction, the income tax department has said. With effect from July 1, 2021, the income tax department has introduced a provision relating to Tax Deducted at Source (Tds)which would be applicable to businesses with turnover of over ~10 crore. Such businesses while making any payments for purchase of goods exceeding ~50 lakh in a financial year to a resident would be required to deduct a 0.1 per cent TDS. However, this provision would not be applicable on share or commodity transactions done through stock exchanges, the Central Board of Direct Taxes (CBDT) has said.