Quick Summary
Tax Deduction at source on Floating Rate Savings (Taxable) Bonds (FRSB) 2020
Section 193 of the Act provides for deduction of tax at source on payment of any income to a resident by way of interest on securities.
2. The Government has introduced Floating Rate Savings (Taxable) Bonds (FRSB) 2020. The provisions of section 193 of the Act are proposed to be amended to allow for deduction of tax at source at the time of payment of interest exceeding ten thousand rupees on -
I. the Floating Rate Savings Bonds (FRSB) 2020 (Taxable) and
II. any security of the Central Government or State Government, as the Central Government may, by notification in the Official Gazette, specify in this behalf.
3. The amendments will take effect from the 1st day of October, 2024.
[Clause 51]
FAQ :
The new TDS rules will take effect from 1st October 2024.
The new rules apply to Floating Rate Savings (Taxable) Bonds (FRSB) 2020 and any security of the Central Government or State Government specified by the Central Government.
Tax deduction at source will apply to interest payments exceeding ten thousand rupees.
These TDS provisions are governed by Section 193 of the Act.
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