The Ministry of Finance, Department of Revenue, through the Central Board of Direct Taxes (CBDT), has issued Notification No. 138/2026 [F. No. 275/44/2026-IT(B)], dated 28th October 2026, granting exemption from the provisions relating to Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) in respect of payments received by the International Rice Research Institute (IRRI) under the Income-tax Act, 2025.
The notification has been issued in exercise of the powers conferred under Section 400(1) of the Income-tax Act, 2025 (30 of 2025). Accordingly, the Central Government has notified that the provisions of Chapter XIX of the Income-tax Act, 2025, relating to deduction and collection of tax at source, shall not apply to payments received by IRRI.
The exemption is, however, subject to compliance with the conditions specified under the United Nations (Privileges and Immunities) Act, 1947 (46 of 1947), read with Notification No. S.O. 3230(E), dated 3rd October 2017, issued by the Ministry of External Affairs, Government of India.
The notification provides specific relief from the applicability of TDS/TCS provisions in relation to payments received by IRRI, subject to the prescribed statutory conditions. The exemption is institution-specific and should not be construed as a general exemption from all provisions of the Income-tax Act, 2025.
The Notification can be accessed at: https://www.incometaxindia.gov.in/documents/d/guest/notification-no-138-2026-pdf
