18 August 2020
DEAR SIR/MADAM, I KEPT FIXED DEPOSIT IN CO OP BANK. IN THIS FINANCIAL YEAR 2020-2021 INCOME TAX CHANGE TDS RATE FROM DT 14/05/2020. UP TO 30/06/2020 I AM NOT ELEGIABLE FOR TDS BECAUSE MY INTEREST IS NOT ABOVE 40000/- BUT I KEPT NEW FD ON 1/7/2020 OF RS.15.00 LACS THEN I CROSS THE INTEREST LIMIT RS.40000/- SO I ELEGIABLE FOR TDS. MY QURY IS ON WHICH RATE TDS DEDUCTED ON INTEREST RECEIVED ON 30/06/2020. THE BANK TOLD THAT UPTO 13/05/2020 INTEREST AMOUNT TDS DEDUCTED @10% AND AFTER TDS @7.5%. IS IT RIGHT OR POSSIBLE.
21 August 2020
Swapnil ji, Yes. Non-salary TDS rate has been reduced by 25% w.e.f. 14.05.2020 and it would be effective till 31.03.2021. This relaxation is applicable only when PAN is submitted to the deductor.
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