Tds @ lower rate

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preet prakash (Querist)

22 January 2016 Hi All
I have received a TDS Certificate from the TDS Circle where d party has filed for lower rate of TDS deduction @ 0.02% does it mean 10000@2% which is 200/- or it means 10000@0.02% which is 2/-.
kindly clarify its 2% or 0.02%
thnx
preet

Ganeshbabu K

Ganeshbabu K (Expert)

22 January 2016 If on lower deduction certificate rate mentioned is 0.02% then apply same rate on amount of payment to party.
so on 10000*0.02% is Rs.2

KAVIRAJA ADDANGADI

KAVIRAJA ADDANGADI (Expert)

22 January 2016 An application for Nil/ lower deduction of TDS is required to be filed in Form-13 to Income tax Officer.The tax officer being satisfied that lower deduction of TDS is justified shall issue a certificate for same u/s 197.
You need to collect Letter of approval for lesser deduction and check till what date it is approved, based on same you have to deduct .
but you have mentioned for 10000 they have deducted Rs.2/- but actual tds u/s 194C it should be 1% Individual & HUF & 2% other than Individual & HUF . but as per your statement tds deducted to you 0.02% , if they deducted lesser amount than department issue notice for short deduction to deductor.

preet prakash

preet prakash (Querist)

23 January 2016 so finally its 0.02% or 2% ?? kindly clarify it.
thnx