On 29 October 2026, the Central Board of Direct Taxes (CBDT) issued Notification No. 138/2026 [F.No. 275/44/2026-IT(B)] / SO 5855(E) granting an exemption from Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) provisions to the International Rice Research Institute (IRRI). This notification is issued under the powers conferred by the Income Tax Act, 2025, and aligns with India’s commitment to supporting international agricultural research organizations operating within its jurisdiction. The exemption applies to all payments made to IRRI, ensuring that no tax is withheld at source on such transactions, thereby facilitating seamless funding and operational flows for the institute’s research activities in India.
Key Takeaways
- Full TDS/TCS Exemption: The notification provides a blanket exemption from both tax deduction and tax collection at source for all payments made to the International Rice Research Institute, eliminating compliance burden for payers.
- International Organization Support: This move underscores India’s policy of fostering collaboration with global agricultural research bodies, promoting food security and sustainable farming research.
- Immediate Effect: The exemption is effective from the date of notification, requiring no further procedural steps from IRRI or its counterparties to claim the benefit.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement