Time of deduction of TDS under section 194E : If the provisions of section 194E of the Income Tax Act, 1961 gets attracted in a given transaction, then, the Deductor is required to deduct TDS within earlier of the following dates –
>At the time of payment in cheque, draft, cash or any other mode or
>At the time of credit of the income to the account of the recipient.
The Rate at which TDS under section 194E is to be deducted : The Deductor liable to deduct TDS under section 194E is required to deduct TDS @ 20%.
TDS on National Savings Scheme Sec 194 EE
This section states that the person making payment of amount referred to in section 80CCA(2)(a) is required to deduct TDS. Section 80CCA (2) (a) refers to the withdrawal of amount deposited under the National Saving Scheme etc
Time of deduction of TDS : The Deductor liable to deduct TDS as per provisions of section 194EE is required to deduct TDS at the time of making payment of the requisite amount.
Rate of TDS :The rate at which TDS is to be deducted under the section 194EE Old 10% and New 7.5%.
Exemption Limit : Section 194EE - As per the said section, no TDS is to be deducted if the aggregate amount paid to the payee, during the financial year, is less than INR 2500.
Regards
Compiled by CA Sunil sakral
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