TDS RATE AND PAYMENT

If the contractor party is a firm then you have to deduct 2% otherwise for individuals 1%. TDS with interest rate of 0.75% per month according to the ordinance from ministry of finance.
eg. If u paid the amount to the contractor on 05/04/2020 then you to pay the TDS on 07/05/2020 or before otherwise you have to pay interest. TDS to be paid on 7th day of succeding payment to contractors .

.0.75% interest ? is this change made due to corona lock down ..I think earlier it was 1.5%

Yeah this 0.75% interest in TDS in included in covid -19 relief package.It will take time to apply in traces and income tax.