S.B. Order 23/2020
Government of India
Ministry of Communications
Department of Posts
(Financial Services Division)
Dak Bhawan, New Delhi-110001
All Head of Circles/Regions,
Subject :- Reduction in rate of Tax Deducted at Source (TDS) in POSB schemes regarding.
I am directed to say that Central Board of Direct Taxes, Department of Revenue, Ministry of Finance has issued a press release dated 13.05.2020 (Copy enclosed) as “In order to provide more funds at the disposal of the taxpayers for dealing with the economic situation arising out of COVID-19 pandemic, the rates of Tax Deduction at Source(TDS) for the following non-salaried specified payments made to residents has been reduced by 25% for the period from 14th May, 2020 to 31st March, 2021”.
Accordingly revised rates of TDS in respect of POSB schemes are as under:-
|Sl. No.||Section of Income Tax||Nature of Payment||Existing rate of TDS||Reduced rate from 14/05/2020 to 31/03/2021||Remarks|
|1||194 A||Interest on other than interest of security||10%||7.50%||SCSS .|
|2||194 EE||Payment in respect of deposit under NSS-87||10%||7.50%||NSS-87|
|3||194 H||Commission or brokerage||5%||3.75%||MPKBY/SAS commission.|
2. Necessary amendments are being made in Finacle. Non-CBS post offices should also take necessary action accordingly.
3. It is requested to circulate the amendment to all concerned for information, guidance and necessary action.
4. This issues with the approval of the Competent Authority.
Assistant Director (SB)