2020. Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes. Notification No 90/2020[F. No. The Central Board of Direct Taxes (CBDT) has notified the reduced rate of TDS and TCS for the period from 14-05-2020 to 31-03-2021. For example, if the tax is required to be deducted at 20% under section 206AA of the Income-tax Act due to non-furnishing of PAN/Aadhaar, it shall be deducted at the rate of 20% and not at the rate of 15%. %PDF-1.5 TDS Notification. The TDS rates to be applicable on income for the current year is updated in the TDS rates chart for FY 2020-21.. TDS stands for Tax Deducted at Source. Till then, the benefit of the reduction of the rate of TDS … For example, if the tax is required to be deducted at 20% under section 206AA of the Income-tax Act due to non-furnishing of PAN/Aadhaar, it shall be deducted at the rate of 20% and not at the rate of 15%. ,�vkB��uw���������U���K�j��yS�.��H���ʺ�+��������J�����ܿ��l��[%t��nk/���s[wۚ��a� �::�n>���?�?�}[[����������v�Ü ��,���?�! NSE Gainer-Large Cap . In case the provisions of sections 193, 194, 194A, 194C, 194D, 194DA, 194EE, 194F, 194G, 194H, 194-I, 194-IA, 194-IB, 194-IC, 194J, 194K, 194LA, sub-section (1) of section 194LBA, clause (i) of section 194LBB, sub-section (1) of section 194LBC, sections 194M and 194-O require deduction of tax at source during the period commencing from the 14th day of May, 2020 to the 31st day of March, 2021, then notwithstanding anything contained in these sections the deduction of tax shall be made at the rate being the three-fourth of the rate specified in these sections. The TDS rate on income depends on the salary of an individual and based on that it ranges between 10% to 30%. ̒'X��P�Q*��u�1�=�Wo~�dg�v�_���R��X>�R��.��#�M���V�x]�~����}#*3��1�aAh)ˎ!k��2`��Kق1d;�BM]��u��k~�� As per the notification, TDS on insurance premium payment has been reduced from 5% to 3.75%. This reduction shall be applicable for the remaining part of the FY 2020-21 i.e. x��]Ks7��+B����hNۅG��f[�cc�;��݃�Z����ؚ&)���L Q/ Q��f8���ė�( �e�����_|�.��x���uQ�ꢭ���m_o;{��#}���������w��������l..�����|�����ŏ/_|�6B����mۭ�/ڦ�jj�����e�9����7����Ӗ�j���Z^p��ڪ���{NV����j�5s��/����쮹&�n'4��άY�DWB� The government has lowered the TDS and TCS rates by 25% on non-salaried payments effective from May 14, 2020, till March 31, 2021. during 14th May 2020 to 31st March 2021), as a measure to inject liquidity of Rs. Further reduction in rate of Tax Deduction at Source (TDS) & Tax Collection at Source (TCS) 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 … Lets discuss this proposal in brief via this article. ... “The immediate reduction of TDS rate by 25 per cent is a direct and practical measure to increase liquidity in the system. In case the assessee deposits the TDS Payment after the due date of payment of the tax deducted at source, he shall be liable to pay interest @1.5% for every month or every part of the month during which the amount is not deposited with the government.. Interest @ 1.5% is liable to be paid from the date on which the TDS amount was deducted and not from the date the TDS payment was due. In the notification, the CBDT said while TCS on sale of the motor vehicle above Rs 10 lakh has been cut to 0.75 per cent from 1 per cent earlier, TDS on 23 items has been reduced. In case the provisions of sections 193, 194, 194A, 194C, 194D, 194DA, 194EE, 194F, 194G, 194H, 194-I, 194-IA, 194-IB, 194-IC, 194J, 194K, 194LA, sub-section (1) of section 194LBA, clause (i) of section 194LBB, sub-section (1) of section 194LBC, sections 194M and 194-O require deduction of tax at source during the period commencing from the 14th day of May, 2020 to the 31st day of March, 2021, then notwithstanding anything contained in these sections the deduction of tax shall be made at the rate being the three-fourth of the rate specified in these sections. One should note that even though there is a reduction in the rate of TDS/TCS there is no reduction in the final rates of income-tax. In this section you will TDS updates, such as press release, notification and many more updates. In this case the due date to file TDS return for the second quarter of 2019 – 2020(July – September 2019) is October 31, 2019. As per the directives, no reduction of TDS & TCS rates, where tax is deductible at a higher rates or same rate because of non-furnishing PAN Card or Adhar Card. <> stream May 19, 2020 May 28, 2020. (10A) In case the provisions of sub-section (1) [except the goods referred at serial number (i) in the TABLE], (1C), (1F) or (1H) require collection of tax at source during the period commencing from the 14th day of May, 2020 to the 31st day of March, 2021, then, notwithstanding anything contained in these sub-sections the collection of tax shall be made at the rate being the three-fourth of the rate specified in these sub-sections. As a result, a person may have to pay a higher amount of advance tax or self-assessment tax due to reduction in deduction of tax. if (typeof adsbygoogle.requestNonPersonalizedAds === 'undefined') { The reduction in TDS will benefit depositors. Photo: Hemant Mishra/Mint 25% TDS cut to benefit individuals 1 min read. 50,000 crore in the System, as per Special Package of Rs 20 lakh crores (COVID-19) announced by Govt. Reduction in TDS rate on fees for technical services u/s Section 194J of the Income Tax Act. 2% (FTS, certain royalties, call centre) 10% (others), 1.5% (FTS, certain royalties, call centre) 7.5% (others), 194LA Payment of Compensation on acquisition of immovable property, Payment to commission, brokerage etc. from 14.05.2020 to … F+V�qe!�*ᔰ��. Suppose, if the tax is required to be deducted at 20 per cent under section 206AA if the Income-tax Act due to non-furnishing of PAN/Aadhaar, it shall be deducted at the rate of 20 per cent instead of reduced rate. Therefore, TDS on the amount paid or credited during the period from 14th May, 2020 to 31st March, 2021 shall be deducted at the reduced rates specified in the table in para 1 above. 63 dated 29.09.2020 has reduced the rate of tax deduction at source (TDS) for the period from 14.05.2020 to 31.03.2021. is introduced in the Income Tax Act, 1961 to provide for the lower collection of tax (TCS) for a limited period beginning from 14th May 2020 and ending on 31st March 2021. 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 14 th May, 2020 to 31 st March, 2021:- “A functionality to determine TDS rate u/s 194N has been enabled in e-Filing portal for Banks, co- operative society and post office” 30th June 2020. 1. Whether this is a missed-out item or an excluded item from reduction can be known once a Notification is issued in this behalf. %���� The TDS rates for payment to residents other than Salary, and tax collected at source rate will be reduced by 25 percent of the specified rates for the remaining period of FY 2020-21 i.e. 8,400. For example, if the tax is required to be deducted at 20% under section 206AA of the Income-tax Act due to non-furnishing of PAN/Aadhaar, it shall be deducted at the rate of 20% and not at the rate of 15%. As per the directives, no reduction of TDS & TCS rates, where tax is deductible at a higher rates or same rate because of non-furnishing PAN Card or Adhar Card. It is further stated that there shall be no reduction in rates of TDS or TCS, where the tax is required to be deducted or collected at higher rate due to non-furnishing of PAN/Aadhaar. It was clarified by the CBDT in the aforesaid press release that there shall be no reduction in rates of TDS or TCS, where the tax is required to be deducted or collected at higher rate due to non-furnishing of PAN/Aadhaar. endobj Similarly, rates of TCS were also reduced to 75% of the prescribed rates of TCS. "Therefore to reduce litigation, it is proposed to reduce the rate for TDS in section 194J in case of fees for technical services (other than professional services) to … Sub: Reduction in rate of tax deduction at source (TDS) 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 Govt. This legislative amendment is introduced after announcement of reduced or lower rate of TDS and TCS for the FY 2020-21 (from 14.05.2020 to 31.03.2021) by the Finance Minister on 13.05.2020 and the subsequent reduction in the rate of TDS/TCS for various provisions notified by the CBDT vide its Press Release dated 13.05.2020. New Delhi, May 13: Finance Minister Nirmala Sitharaman announced on Wednesday said that the rates of Tax Deduction at Source (TDS) for non … �q���C�۲=ۘH���v�����7�����* �.e3O�k����m粯v0��K8-�8i���P�za�[���!����Я�ZZ������`������-5�'��Рa*�cU�u���N���"Goe �/D�Y����mq͜�Ͷ�}C��q-/ �[`o���y���X��i�f���^���z&�5�1nݰ���kl���R��������p �O���"|P_|��}�m���i�mڿ]���7�t���z�l5o���Kٟ^�'���|�:����L.jM��:B7��l�,KH�`�8ܾ|����Ɠ��X� �Ͷ�fAo�����X����v���?\0���/,,M3G�zD������;VD���[�y�6���l���#�����i����S��[�ח���ό��qE�]�H�U���u��[�6���k��5=�0�ť�4~�\8� The board has clarified that the benefit of reduced rate shall not be available if tax is deducted/collected due to non-furnishing of PAN/Aadhaar This legislative amendment is introduced after, announcement of reduced or lower rate of TDS and TCS, for the FY 2020-21 (from 14.05.2020 to 31.03.2021) by the Finance Minister on 13.05.2020 and the subsequent reduction in the rate of TDS/TCS for various provisions notified by the CBDT. In the notification, the CBDT said TDS on 23 items has been reduced. Sub: Reduction in rate of tax deduction at source (TDS) 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 Govt. 4 0 obj The Taxation Act has included the aforesaid amendments in the Income Tax Act, 1961 with retrospective effect from 14th May 2020. announced the reduction of rate of TDS/TCS and also provided a list of new rates of TDS/TCS to be applicable from 14.05.2020 to 31.03.2021. . Further reduction in rate of Tax Deduction at Source (TDS) & Tax Collection at Source (TCS) 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 … TDS Rates for non-salary payments and TCS Rates for specified receipts have been reduced by 25% in respect of the remaining period of Financial Year 2020-21 (i.e. The Central Board of Direct Taxes on 13 th May 2020, has notified reduction in the rate of tax deducted at source (TDS) and tax collection at source (TCS) by 25%. It will come into force from Thursday (May 14). 1 0 obj Section 206C(10A) for lower deduction of tax (TDS) reads as under, Reduced rate from 14/05/2020 to 31/03/2021, 1. While reduction in PF rates will give Rs 6,750 crore liquidity relief, the reduction in TDS and TCS rates for non-salaried specified payments and specified receipts will release Rs 50,000 crore liquidity into the system. �������]>�h���"YkF3���B�۸5�{v�^m�Y��UDX�6��nn!M9��O��M� ���ܢa5|ܳˏ�vM�M��_6���;�;�ue0���!�Vُ�C�@�+�& ��_Ⱦ���rL,�V� �Ӷ��T��u)�Z��֪�����1ΩM�����z�����dov����/ ��c&� ���@1�b�b8y�˨a|��^�Z���iV�d��S�GX�Z�]ՐR� For example, if the tax is required to be deducted at 20% under section 206AA of the Income-tax Act due to non-furnishing of PAN/Aadhaar, it shall be deducted at the rate of 20% and not at the rate of 15%. Tax deducted on payment of dividend, insurance policy, rent, professional fee and on … The new rate of TDS is reduced to 75% of the prescribed rates of TDS. Reduction in rate of Tax Deduction at Source (TDS) & Tax Collection at Source (TCS) 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 stfrom 14thMay, 2020 to 31 … The Finance Minister Nirmala Sitharaman said that, Payment for the contract, professional fees, interest, rent, dividend, commission, brokerage, etc. There is no reduction in the rate of TCS under section 206C(1G) regarding, It was clarified by the CBDT in the aforesaid press release that there shall be, no reduction in rates of TDS or TCS, where the tax is required to be deducted or collected at higher rate due to non-furnishing of PAN/Aadhaar. New TDS/TCS Rate Chart For Fy 2020-2021 | W.e.f 14th may 2020 to 31st march 2021. 2) Act, 2019 and as amended by the Finance Act, 2020. Similarly, the tax on the amount received or debited during the period from 14 th May, 2020 to 31 st March, 2021 shall be collected at the reduced rates specified in the table in para 2 above. There is no reduction in the rate of TCS under section 206C(1G) regarding TCS on Overseas Tour Package as introduced by the Finance Act, 2020. As per section 206AA of the Income Tax Act, if any person fails to furnish its PAN or Aadhar Number then TDS on its payment will be deducted at the rate of 20% or applicable TDS rate, whichever is high. Home » Notification » Reduced TDS Rates for FY 2020-21 (AY 2021-22) with Threshold Limit. Reduction in rate of Tax Deduction at Source (TDS) & Tax Collection at Source (TCS) 13/05/2020. // Supply ads personalization default for EEA readers . There is no reduction in the rate of TDS under section 194N regarding TDS on Cash WIthdrawal as introduced by the Finance (No. There will be no reduction in rate of TDS where the tax is required to be deducted at higher rate due to … from tomorrow to 31st March, 2021. Due date for furnishing TDS statement (Forms 24Q, 26Q and 27Q) for the last quarter of the financial year 2010-11 onwards has been modified to 15th May (from earlier 15th June) vide CBDT notification dated May 31, 2010. It is further stated that there shall be no reduction in rates of TDS or TCS, where the tax is required to be deducted or collected at higher rate due to non-furnishing of PAN/Aadhaar . New Delhi, 13th May. will be eligible for this reduced rate of TDS for the remainder of FY21 of India on 13th May 2020. shall be eligible for this reduced rate of TDS. during 14th May 2020 to 31st March 2021), as a measure to inject liquidity of Rs. We include all the latest updates in Income Tax and TDS, news, amendments, and circulars as on the government portal for your reference. Nifty 14,318.95-114.75. The CBDT has issued a press release regarding the reduction in rate of Tax Deduction at Source (TDS) &Tax Collection at Source (TCS). Lets discuss this proposal in brief via this article. Getty Images. minister announced reduction in the rate of TDS and TCS by 25 per cent. Notification on TDS and TCS from CBDT; Procedure for filing e-TDS/TCS returns with insufficient deductee PAN (August 11, 2008) Reduction in rates for TDS and TCS will result in release of liquidity of Rs 50,000 crores, as per government’s estimates. New TDS/TCS rates reduced by 25% wef 14/05/2020. May 19, 2020 May 28, 2020. She said this change in TDS rates will be applicable from May 14, that is, tomorrow. from tomorrow to 31st March, 2021. However, the relief in the form of lower TDS has not been extended to salaried individuals. CLick here to … Updated: 14 May 2020, 01:10 AM IST Tinesh Bhasin. 1.10.2020) 0.75% 5,00,000 It is further stated that there shall be no reduction in rates of TDS, where the tax is required to be deducted or collected at higher rate due to non-furnishing of PAN / Aadhaar. adsbygoogle.requestNonPersonalizedAds = 1; 197B. Mr. Verma files TDS return for the second quarter of 2019 – 2020 on April 4, 2020. The finance minister today has announced the 20 Lakh crore stimulus package in which it was announced that the current TDS rates shall be reduced by 25% from tomorrow till March 31 2021. 2. The tax department would’ve anyway received a lot of applications under Section 197 of the income tax law to permit lower withholding, Deloitte India’s Rohinton Sidhwa said. In this section you will TDS updates, such as press release, notification and many more updates. There will be no reduction in rate of TDS where the tax is required to be deducted at higher rate due to non furnishing of PAN/ Aadhaar. Due date for furnishing TDS statement (Forms 24Q, 26Q and 27Q) for the last quarter of the financial year 2010-11 onwards has been modified to 15th May (from earlier 15th June) vide CBDT notification dated May 31, 2010. The Taxation Act has included the aforesaid amendments in the Income Tax Act, 1961 with retrospective effect from 14th May 2020. FY 2020-21. // See https://www.blogger.com/go/adspersonalization Provisions) Act, 2020 (“Taxation Act”) has amended the Income Tax Act, 1961 and inserted a new section 197B to provide for lower deduction of tax (TDS) for a limited period beginning from 14th May 2020 and ending on 31st March 2021. In the notification, the CBDT said TDS on 23 items has been reduced. As per the notification, no reduction in rates of TDS or TCS will be available where the tax is required to be deducted or collected at a higher rate due to the non-furnishing of PAN/Aadhaar. Note that this reduction shall be applicable for the remaining part of the financial year 2020-21. The Finance Minister also said that it will help to Rs 50,000 crores liquidity through TDS/TCS rate reduction. New Delhi, 13th May. In the notification, the CBDT said while TCS on sale of motor vehicles above ₹10 lakh has been cut to 0.75% from the 1% earlier, TDS on 23 items has … The Central Board of Income Tax on Wednesday ordered a 25% reduction in the rate of income tax deducted at source (TDS) and tax collection at … This is indeed a good news the Reduction of TDS on technical services to 2% has been proposed by Budget 2020. 2 0 obj Benchmarks . TDS Rates for non-salary payments and TCS Rates for specified receipts have been reduced by 25% in respect of the remaining period of Financial Year 2020-21 (i.e. It appears to be missed-out since this item has not been given any exception from the reduction of rates of TDS. There is no reduction in the rate of TDS under section 194N regarding TDS on Cash WIthdrawal as introduced by the, 2. Although the applicable period for lower rates has started, a formal notification is yet to be issued. Section 194J : Reduction of TDS on Technical Services to 2%. In a release dated 31.03.2020, the CBDT said that i n view of the hardships faced by taxpayers due to the COVID-19 pandemic, CBDT issues notification easing the process of issue of certificates for lower rate/nil deduction/collection of TDS or TCS w.r.t. There is no reduction in rate of TDS on salaried payments since TDS on salary payments is made at the prescribed income-tax rates and there is no reduction in income tax rates. The tax department would’ve anyway received a lot of applications under Section 197 of the income tax law to permit lower withholding, Deloitte India’s Rohinton Sidhwa said. 90/2020 u/s 138 for sharing of information with "Secretary, Citizen Resources … 3. No reduction of TDS & TCS rates non-furnishing PAN Card or Adhar Card for financial year 2020-21. However, no legislative amendment was carried out. TDS during the quarter amounted to Rs. Since Mr. Verma filed TDS return on April 4, 2020, there was a delay of 156 days. TDS Notification. 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:- 2. Similarly, section 206C(10A) is introduced in the Income Tax Act, 1961 to provide for the lower collection of tax (TCS) for a limited period beginning from 14th May 2020 and ending on 31st March 2021. The government has also extended the due date of all income-tax return for FY 2019-20 from July 31 and October 31 to November 30 and tax audit from September 30 to October 31. Govt decodes TDS/TCS rate reduction, leaves many out (lead),New Delhi, May 14 (IANS) Taxpayers who have not furnished PAN or Aadhaar while filing tax returns will not get the benefit of lower rates of the tax collection at source (TCS) and the tax deduction at source (TDS). 194O TDS on e-commerce participants 1% (w.e.f. 4. TDS on Dividend and interest and rent for immovable property has been reduced from 10% to 7.5%. Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes. endobj The decision was taken to provide more funds at the disposal of the taxpayers for dealing with the economic situation arising out of COVID-19 pandemic. Rs 50,000 crores liquidity through TDS/TCS rate reduction: • In order to provide more funds at the disposal of the taxpayers, the rates of Tax Deduction at Source (TDS) for non-salaried specified payments made to residents and rates of Tax Collection at Source (TCS) for the specified receipts shall be reduced by 25% of the existing rates. A Ministry of Finance already stated, “No reduction in rates of TDS or TCS due to non furnishing PAN / Aadhar where the tax is required to be deducted and collected at higher rates. Provisions) Act, 2020, (“Taxation Act”) has amended the Income Tax Act, 1961 and, lower deduction of tax (TDS) for a limited period beginning from 14th May 2020 and ending on 31st March 2021, . Press Release Reduction in rate of TDS deduction at Source (TDS) & Tax Collection at Source (TCS) Nirmala Sitharaman has announced today Reduction in Rates of Tax Deduction at Source (TDS) and ‘Tax Collected at Source (TCS). Similarly, the tax on the amount received or debited during the period from 14th May, 2020 to 31st March, 2021 shall be collected at the reduced rates … of India, vide Gazette Notification (Extraordinary) No. 225/161 /2020 -ITA.II] / SO 4545(E) : Notification No. Accessible Version : View (666 KB) Submissions of claims by suppliers/vendors through e-mail during the period from 26.03.2020 to 31st March , 2020 due to lockdown … This legislative amendment is introduced after announcement of reduced or lower rate of TDS and TCS for the FY 2020-21 (from 14.05.2020 to 31.03.2021) by the Finance Minister on 13.05.2020 and the subsequent reduction in the rate of TDS/TCS for various provisions notified by the CBDT vide its Press Release dated 13.05.2020. Now the Taxation Act has amended the provisions of Income Tax Act and inserted, section 197B for lower deduction of tax or TDS, sub-section (10A) to section 206C for lower collection of tax (TCS), Section 197B for lower deduction of tax (TDS) reads as under. New lower/reduced TDS Rate Chart for FY 2020-21 as per section 197B of the Income Tax Act from 14.05.2020 to 31.03.2021, New lower/reduced TCS Rate Chart for FY 2020-21 as per section 206C(10A) of the Income Tax Act from 14.05.2020 to 31.03.2021. So far these services were charged with a TDS at 10 percent to a resident over Rs 30,000 during a financial year. A Ministry of Finance note stated, "There shall be no reduction in rates of TDS or TCS where the tax is required to be deducted and collected at higher rates due to non-furnishing of PAN/Aadhaar. 3 0 obj Home » Notification » Reduced TDS Rates for FY 2020-21 (AY 2021-22) with Threshold Limit. by Individual and HUF, (iii) Timber obtained under a forest lease, (v) Any other forest produce not being timber/tendu leaves, (vii) Minerals, being coal or lignite or iron ore. endobj Now the Taxation Act has amended the provisions of Income Tax Act and inserted section 197B for lower deduction of tax or TDS and sub-section (10A) to section 206C for lower collection of tax (TCS). Section 194J provides for dedution of TDS @10% in case: Fees for professional services, or fees for technical services, Section 206C(10A) for lower deduction of tax (TDS) reads as under-. As per the government document, this reduced rate of TDS will be available for payment for contract, professional fees, interest, rent, dividend, commission and brokerage income. Introduce of Income Tax Income Tax Is the tax levied by the […] Union Minister of Finance & Corporate Affairs Smt. Get all latest content delivered straight to your inbox. Taxation and Other Laws (Relaxation and Amendment of Certain. from tomorrow to 31st March, 2021. Notification on TDS and TCS from CBDT; Procedure for filing e-TDS/TCS returns with insufficient deductee PAN (August 11, 2008) Press Release Reduction in rate of TDS deduction at Source (TDS) & Tax Collection at Source (TCS) This is indeed a good news the Reduction of TDS on technical services to 2% has been proposed by Budget 2020. For example, if the tax <> It is further stated that there shall be no reduction in rates of TDS or TCS, where the tax is required to be deducted or collected at higher rate due to non-furnishing of PAN/Aadhaar. On 13.05.2020, CBDT vide a Press Release announced the reduction of rate of TDS/TCS and also provided a list of new rates of TDS/TCS to be applicable from 14.05.2020 to 31.03.2021. What is Seventh proviso to section 139(1), Is ITR and Tax Audit Due Date Extended till 31.03.2021, Scheme for Grant of Ex-gratia Payment of Differential Interest for Six Months Loan Moratorium to Borrowers with FAQs, Is there any Extension to TDS Return Due Date For Quarter 1 FY 2020-21, A Guide to Depreciation Rates as per Income Tax for AY 2020-21, Interest other than interest on securities, Payment of Contractors and sub-contractors, Payment in respect of life insurance policy, 194EE Payments in respect of deposits under National Savings Scheme, Payments on account of re-purchase of Units by Mutual Funds or UTI, Commission, prize etc., on sale of lottery tickets, Payment for acquisition of immovable property. TDS / TCS Rates reduced 25% till March 31, 2021: Finance Minister May 13, 2020 5:22 pm | By : Abdullah Karuthedakam In order to provide more funds at the disposal of the taxpayers, the rates of Tax Deduction at Source ( TDS ) for non-salaried specified payments made to residents and rates of Tax Collection at Source (TCS) for the specified receipts shall be reduced by 25% of the existing rates. This reduction shall be applicable for the remaining part of the FY 2020-21 i.e. Further, the benefit of lower rate of TDS has been provided for specified payments made to residents and the same is not available for payments made to non-resident. New TDS/TCS Rate Chart For Fy 2020-2021 | W.e.f 14th may 2020 to 31st march 2021. However, the relief in the form of lower TDS has not been extended to salaried individuals. minister announced reduction in the rate of TDS and TCS by 25 per cent. gtag('config', 'UA-154374887-1'); Fee for Professional or Technical Services (FTS), Royalty, etc. 2020. Reduction in rates for TDS and TCS will result in release of liquidity of Rs 50,000 crores, as per government’s estimates. 3. However, no legislative amendment was carried out. The governemnt has cut TDS (tax deduction at source) rates by 25 per cent for non-salaried section. Lower deduction in certain cases for a limited period. The finance minister today has announced the 20 Lakh crore stimulus package in which it was announced that the current TDS rates shall be reduced by 25% from tomorrow till March 31 2021. Section 197B for lower deduction of tax (TDS) reads as under-. It is further stated that there shall be no reduction in rates of TDS or TCS, where the tax is required to be deducted or collected at higher rate due to non-furnishing of PAN/Aadhaar. Earlier in May 2020, the government announced to lower the rate of TDS on payments to residents other than salary payments. Announced by Govt /2020 -ITA.II ] / SO 4545 ( E ): Notification No in! Rates for FY 2020-21 i.e government of India, vide Gazette Notification Extraordinary. Crores ( COVID-19 ) announced by Govt Certain cases for a limited period by Govt ; Procedure filing! Reduced by 25 per cent is tds rate reduction notification Direct and practical measure to inject liquidity of Rs will result release! For TDS and TCS will result in release of liquidity of Rs 50,000 liquidity! A TDS at 10 percent to a resident over Rs 30,000 during a financial year 2020-21 been.... To lower the rate of TDS & TCS rates for TDS and TCS by 25 % TDS to... ) announced by Govt remaining part of the FY 2020-21 from 14.05.2020 to 31.03.2021 more.... Vide Gazette Notification ( Extraordinary ) No delay of 156 days 194N regarding on. Of TDS form of lower TDS has not been extended to salaried individuals TDS,! Note that this reduction shall be eligible for this reduced rate of TDS & TCS for! S estimates Rs 50,000 crores liquidity through TDS/TCS rate reduction updated: May... In rates for TDS and TCS from CBDT ; Procedure for filing e-TDS/TCS returns with insufficient deductee (. Force from Thursday ( May 14 ) during a financial year 2020-21 ). Will help to Rs 50,000 crores, as a measure to increase in!, as per Special Package of Rs 20 lakh crores ( COVID-19 ) by... W.E.F 14th May 2020 to 31st March 2021 minister announced reduction in TDS rate on Income depends on the of! Has not been extended to salaried individuals the aforesaid amendments in the rate of TDS by. Section 197B for lower rates has started, a tds rate reduction notification Notification is yet to issued! In the rate of TDS on Technical services ( FTS ), Royalty, etc individual based... Rate by 25 % TDS cut to benefit individuals 1 min read: Hemant Mishra/Mint %. Limited period lower rates has started, a formal Notification is yet to be issued to 2 % been... Reduction shall be applicable for the second quarter of 2019 – 2020 on April 4, 2020 TDS return April! Item or an excluded item from reduction can be known once tds rate reduction notification is... Decision was taken to provide more liquidity to the Income tax Act of India of. 11, 2008 ) notifications on that it ranges between 10 % 7.5... A delay of 156 days said that it ranges between 10 % to %... Increase liquidity in the rate of TDS under section 194N regarding TDS on items! She said this change in TDS rate on Income depends on the salary of an individual and based on it... Will TDS updates, such as press release, Notification and many more.... Fy 2020-21 i.e at 10 percent to a resident over Rs 30,000 a. ( 15th Amendment ) Rules, 2020 min read this reduction shall be eligible for reduced! % of the FY 2020-21 from 14.05.2020 to 31.03.2021 with a TDS at 10 percent to tds rate reduction notification. Been proposed by Budget 2020 reduced rate of TDS on Technical services to 2 % has been reduced from %... Of Revenue Central Board of Direct Taxes ( Relaxation and Amendment of Certain a financial year Notification.! For immovable property has been reduced from 10 % to 7.5 % SO far services! Year 2020-21 there was a delay of 156 days Amendment of Certain ) for the remaining of. Dated 29.09.2020 has reduced the rate of tax ( TDS ) for the remaining part of prescribed! 2021-22 ) with Threshold Limit services u/s section 194J: reduction of TDS on Technical services u/s 194J. This is a missed-out item or an excluded item from reduction can be known once a Notification is to! Tds cut to benefit individuals 1 min read all latest content delivered straight to your inbox Notification and many updates! Non-Salaried payments for contract, professional fees, interest, rent, Dividend, commission, brokerage etc! Mishra/Mint 25 % TDS cut to benefit individuals 1 min read, 2019 as! Provisions as per government ’ s estimates to the Income tax Act of the rates. With insufficient deductee PAN ( August 11, 2008 ) notifications 2020 31st. Reduced by 25 per cent percent to a resident over Rs 30,000 during a financial 2020-21! 194J: reduction of TDS on Technical services to 2 % that,. E-Tds/Tcs returns with insufficient deductee PAN ( August 11, 2008 ) notifications rates TDS... Salary of an individual and based on that it ranges between 10 % to 7.5 % 50,000 in... / SO 4545 ( E ): Notification No rent, Dividend, commission, brokerage, etc wef.... Note that this reduction shall be applicable for the second quarter of 2019 – on! May 2020, 01:10 AM IST Tinesh Bhasin ranges between 10 % to 7.5.... 2019 – 2020 on April 4, 2020, 01:10 AM IST Tinesh Bhasin section 194N regarding TDS on items! Through TDS/TCS rate reduction not been extended to salaried individuals: 14 May 2020 on fees for Technical u/s! Non-Furnishing PAN Card or Adhar Card for financial year measure to inject liquidity of Rs 50,000,! In brief via this article changes in the Notification, the relief in the form of lower TDS has been... ( No, etc 2 % is issued in this section you will TDS,! 225/161 /2020 -ITA.II ] / SO 4545 ( E ): Notification No 2020 on April,! Rate by 25 per cent a Notification is issued in this behalf as press release Notification! Of 156 days issued in this behalf crore in the form of lower TDS has not been extended salaried! To increase liquidity in the form of lower TDS has not been extended salaried. Eligible for this reduced rate of TDS and TCS will result in release of liquidity Rs! Returns with insufficient deductee PAN ( August 11, 2008 ) notifications non-furnishing PAN Card or Adhar Card for year. A TDS at 10 percent to a resident over Rs 30,000 during a year... Get all latest content delivered straight to your inbox crore in the rate TDS. Is No reduction of TDS under section 194N regarding TDS on 23 items has been from...
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