Tds on remaining amount

This discussion clarifies the TDS (Tax Deducted at Source) applicable to remaining payment amounts. If an advance payment was made before March 2021 and TDS was deducted at a reduced rate of 7.5% under COVID-19 concessions, the remaining balance due in the current financial year (FY21-22) is subject to the standard TDS rate of 10%. However, TDS obligation arises at the time of payment, so if the advance was paid last financial year, no differential TDS is required on that specific advance payment in the current year.