Accounts Team

@ Team - We need to send a mail to all our customer to deduct TDS @2% ( after new notification 1.5%) instead of 10% u/s 194J
We write to notify you about the recent amendment in the tax withholding provisions that affect payments made to Ginni Systems Ltd. (branded as Ginesys).

As you may be aware, the rate of TDS on fees for technical services under section 194J has been lowered from 10% to 2%, with effect from Financial Year 2020-21 (i.e., on or after the period beginning from April 01, 2020).

The Finance Bill 2020 carrying the amendment has also been passed by the Government and hence, the same is now effective. Copy of the same is attached for your reference.

Given our contractual relationship, we request you to take note of the above and urge you to deduct taxes at 2% u/s 194J of Income Tax Act, on payments made to Ginesys, 

In addition to above, as per new amendment declared by the Honorable Union Minister of Finance & Corporate Affairs, Smt. Nirmala Sitharaman, on May 13, 2020, it was announced that TDS rates on payments to residents have been reduced by 25% of the existing rates. The TDS rate applicable for payments/credits made to us for the period May 14, 2020 to March 31, 2021, will now be 75% of 2% i.e. 1.5%

Note : You need to communicate to each customer in every communication  + mail those customer also, who has made payment this Month. as that TDS is still not deposited.