Budget 2024: TDS introduced on Floating Rate Savings (Taxable) Bonds
The Finance Minister of India was presented the Budget 2024 on 23rd July this year. She proposed changes various to simplify taxation and ease of doing business. Tax Deduction at Source (TDS) on Floating Rate Savings (Taxable) Bonds (FRSB) was introduced in this budget.
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. The Government introduced Floating Rate Savings (Taxable) Bonds (FRSB) in 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 on this behalf.
The amendments will take effect from the 1st day of October 2024.