TDS rates

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Dinesh Nair (Querist)
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22 August 2009 The tax ready recknors states that the TDS rate for interest "other than securities" in the case of a domestic company is -20%

However, if one looks at the Finance Act -Schedule-I, part-2, the rate is mentioned as 10%

Can anybody clarify, pl.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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22 August 2009 Yes i have also noticed such inconsistency.

I think it should be taken at 10% as Finance Act is of more weightage.

Other peoples comments are also invited.

Aditya Maheshwari

Aditya Maheshwari (Expert)
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22 August 2009 Other peoples comments are also invited

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Dinesh Nair

Dinesh Nair (Querist)
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24 August 2009 I too want to agree with your views. But considering that neither the budget proposal nor the notes to the clauses covers this aspect, I tend to think it to be a typographical error. It will also lead to a situation wherein an individual and corporates will be treated at par for TDS rates, which I feel is unlikely.

Thanks & Regards
Dinesh