Why is my TDS % higher than 1%?
Updated
Important Information about TDS Rates
Standard TDS Rate and Exceptions: The usual Tax Deducted at Source (TDS) rate is 1%. However, certain circumstances call for a higher TDS rate based on Government of India guidelines.
Higher TDS at 5%: If you haven't filed your Income Tax Return (ITR) for the past two financial years OR if your total TDS (Tax Deducted at Source) or TCS (Tax Collected at Source) amounts to Rs. 50,000 or more for the last two assessment years, a higher TDS rate of 5% will apply (as per Section 206AB of the Income Tax Act, 1961).
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Higher TDS at 20%: If your PAN is not linked with Aadhaar by June 30, 2023, a 20% TDS rate applies from July 1, 2023 (CBDT circular F. No. 370142/14/22-TPL, March 30, 2022). Link your PAN with Aadhaar
here. It may take 4-5 days for it update to reflect in the government database.
Dual Category Inclusion: If you fall under both the above categories, the applicable TDS rate will be 20%.
Note:
TDS is not a fee imposed by CoinDCX.
If your income tax payable is less than the TDS deducted, you can claim a refund for the excess amount while filing your Income Tax Return for the respective financial year.
For more details on TDS, visit the Income Tax India website here to learn about filing TDS returns.
