SB Order on reduction of rate of Tax Deducted at Source (TDS) in POSB Schemes
SB Order on reduction of rate of TDS in POSB Schemes
S.B. Order 23/2020
e. F.No.FS-79/2/2020-FS
Government of India
Ministry of Communications
Department of Posts
(Financial Services Division)
Dak Bhawan, New Delhi-110001
Dated:- 26-06-2020
To,
All Head of Circles/Regions,
Subject: Reduction in rate of Tax Deducted at Source (TDS) in POSB schemes regarding.
Sir/Madam,
Also Read: New Income Tax Rates For Financial Year 2020-21
I am directed to say that Central Board of Direct Taxes, Department of Revenue, Ministry of Finance has issued a press release dated 13.05.2020 (Copy enclosed) as “In order to provide more funds at the disposal of the taxpayers for dealing with the economic situation arising out of COVID-19 pandemic, the rates of Tax Deduction at Source (TDS) for the following non-salaried specified payments made to residents has been reduced by 25% for the period from 14th May, 2020 to 31st March, 2021″.
Also Read: Govt Reduced TDS and TCS Rates by 25% for the period from 14 May 2020 to 31 March 2021
Accordingly revised rates of TDS in respect of POSB schemes are as under:-
a. Section of Income Tax: 194 A
Nature of Payment: Interest on other than interest of security
Existing rate of TDS: 10%
Reduced rate from 14/05/2020 to 31/03/2021: 7.5%
Remarks: SCSS
b. Section of Income Tax: 194 EE
Nature of Payment: Payment in respect of deposit under NSS-87
Existing rate of TDS: 10%
Reduced rate from 14/05/2020 to 31/03/2021: 7.5%
Remarks: NSS-87
c. Section of Income Tax: 194 H
Nature of Payment: Commission or brokerage
Existing rate of TDS: 5%
Reduced rate from 14/05/2020 to 31/03/2021: 3.75%
Remarks: MPKBY/SAS commission
2. Necessary amendments are being made in Finacle. Non-CBS post offices should also take necessary action accordingly.
3. It is requested to circulate the amendment to all concerned for information, guidance and necessary action.
4. This issues with the approval of the Competent Authority.
sd/-
(Devendra Sharma)
Assistant Director (SB)
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