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. 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%. Section 206C(10A) for lower deduction of tax (TDS) reads as under, Reduced rate from 14/05/2020 to 31/03/2021, 1. <> This reduction shall be applicable for the remaining part of the FY 2020-21 i.e. Till then, the benefit of the reduction of the rate of TDS … 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%. TDS on Dividend and interest and rent for immovable property has been reduced from 10% to 7.5%. gtag('config', 'UA-154374887-1'); Getty Images. Nirmala Sitharaman has announced today Reduction in Rates of Tax Deduction at Source (TDS) and ‘Tax Collected at Source (TCS). stream ̒'X��P�Q*��u�1�=�Wo~�dg�v�_���R��X>�R��.��#�M���V�x]�~����}#*3��1�aAh)ˎ!k��2`��Kق1d;�BM]��u��k~�� 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. endobj Union Minister of Finance & Corporate Affairs Smt. This TDS reduction is applicable for the remaining part of the current fiscal year, that is, up to March 31 next year. The decision was taken to provide more liquidity to the individuals by lowering the tax rates. Section 194J provides for dedution of TDS @10% in case: Fees for professional services, or fees for technical services, 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. 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. 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. 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. The reduction in TDS will benefit depositors. 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. 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 . 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. endobj TDS Notification. Since Mr. Verma filed TDS return on April 4, 2020, there was a delay of 156 days. Reduction in rates for TDS and TCS will result in release of liquidity of Rs 50,000 crores, as per government’s estimates. This reduction shall be applicable for the remaining part of the FY 2020-21 i.e. New Delhi, May 13: Finance Minister Nirmala Sitharaman announced on Wednesday said that the rates of Tax Deduction at Source (TDS) for non … New TDS/TCS rates reduced by 25% wef 14/05/2020. of India, vide Gazette Notification (Extraordinary) No. Nifty 14,318.95-114.75. 2020. The Finance Minister Nirmala Sitharaman said that, Payment for the contract, professional fees, interest, rent, dividend, commission, brokerage, etc. No reduction of TDS & TCS rates non-furnishing PAN Card or Adhar Card for financial year 2020-21. 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. Reduction in TDS rate on fees for technical services u/s Section 194J of the Income Tax Act. Reduction in rate of Tax Deduction at Source (TDS) & Tax Collection at Source (TCS) 13/05/2020. %PDF-1.5 However, no legislative amendment was carried out. (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. 3. 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. minister announced reduction in the rate of TDS and TCS by 25 per cent. Tax deducted on payment of dividend, insurance policy, rent, professional fee and on … 4. Press Release Reduction in rate of TDS deduction at Source (TDS) & Tax Collection at Source (TCS) adsbygoogle = window.adsbygoogle || []; Get all latest content delivered straight to your inbox. 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. Chart of reduced TDS / TCS rates for FY 2020-21 from 14.05.2020 to 31.03.2021. Section 194J : Reduction of TDS on Technical Services to 2%. 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. New reduced TDS Rate Chart for FY 2020-21 and Income Tax Relief Measures, Amended Section 194N-TDS on Cash Withdrawals from 2020-21, Changes in TDS and TCS Provisions in Union Budget 2020, Changes in TDS Rates and Provisions in Union Budget 2019, Changes in TCS Provisions from FY 2020-21 after enactment of Finance Act, 2020, Get all latest content delivered straight to your inbox, Reduction in Rate of TDS and TCS Notified by Section 197B of Income Tax, Taxation and Other Laws (Relaxation and Amendment of Certain. May 19, 2020 May 28, 2020. 1 0 obj 8,400. 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. 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. 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 … 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. 225/161 /2020 -ITA.II] / SO 4545(E) : Notification No. 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. However, no legislative amendment was carried out. 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. will be eligible for this reduced rate of TDS for the remainder of FY21 As per the notification, TDS on insurance premium payment has been reduced from 5% to 3.75%. 2020. %���� 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. Photo: Hemant Mishra/Mint 25% TDS cut to benefit individuals 1 min read. minister announced reduction in the rate of TDS and TCS by 25 per cent. 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. 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. FY 2020-21. Notification on TDS and TCS from CBDT; Procedure for filing e-TDS/TCS returns with insufficient deductee PAN (August 11, 2008) 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 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. 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, . 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. 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. from tomorrow to 31st March, 2021. May 19, 2020 May 28, 2020. �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� Fee for Professional or Technical Services (FTS), Royalty, etc. notifications. For example, if the tax Reduction in rates for TDS and TCS will result in release of liquidity of Rs 50,000 crores, as per government’s estimates. Mr. Verma files TDS return for the second quarter of 2019 – 2020 on April 4, 2020. 2) Act, 2019 and as amended by the Finance Act, 2020. 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. 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. if (typeof adsbygoogle.requestNonPersonalizedAds === 'undefined') { of India on 13th May 2020. 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. Also, the TDS has not been reduced on salary income, cash 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%. 1. 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. CLick here to … 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:- 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. Lower deduction in certain cases for a limited period. Press Release Reduction in rate of TDS deduction at Source (TDS) & Tax Collection at Source (TCS) 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. 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. TDS, TCS Reduced By 25%, Says Nirmala Sitharaman The measure will come into force tomorrow and last till the end of the financial year - March 2021 and … 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 … Revised TDS rates chart for Financial Year 2020-21 and Assessment Year 2021-22 from 14th May 2020 as per announcement by Finance Minister on 13 May 2020. 3 0 obj The Finance Minister also said that it will help to Rs 50,000 crores liquidity through TDS/TCS rate reduction. 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. 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. . Taxation and Other Laws (Relaxation and Amendment of Certain. 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. during 14th May 2020 to 31st March 2021), as a measure to inject liquidity of Rs. 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. ... “The immediate reduction of TDS rate by 25 per cent is a direct and practical measure to increase liquidity in the system. 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. <> 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. Here we have provided complete notifications related to the Income Tax and TDS provisions as per the official government laws. New TDS/TCS Rate Chart For Fy 2020-2021 | W.e.f 14th may 2020 to 31st march 2021. Note that this reduction shall be applicable for the remaining part of the financial year 2020-21. 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. Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes. It will come into force from Thursday (May 14). Section 194J provides for dedution of TDS @10% in case: Fees for professional services, or fees for technical services, 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. from tomorrow to 31st March, 2021. In this section you will TDS updates, such as press release, notification and many more updates. Section 206C(10A) for lower deduction of tax (TDS) reads as under-. There is no reduction in the rate of TDS under section 194N regarding TDS on Cash WIthdrawal as introduced by the Finance (No. Non-salaried payments for contract, professional fees, interest, rent, dividend, commission, brokerage, etc. 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. The TDS rate on income depends on the salary of an individual and based on that it ranges between 10% to 30%. of India on 13th May 2020. 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. The governemnt has cut TDS (tax deduction at source) rates by 25 per cent for non-salaried section. 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. 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. In this section you will TDS updates, such as press release, notification and many more updates. 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 CBDT has issued a press release regarding the reduction in rate of Tax Deduction at Source (TDS) &Tax Collection at Source (TCS). New Delhi, 13th May. 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). 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%. }. from 14.05.2020 to … In the notification, the CBDT said TDS on 23 items has been reduced. 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%. Introduce of Income Tax Income Tax Is the tax levied by the […] Benchmarks . 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. “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. Lets discuss this proposal in brief via this article. 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 … Section 197B for lower deduction of tax (TDS) reads as under-. 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. 50,000 crore in the System, as per Special Package of Rs 20 lakh crores (COVID-19) announced by Govt. of India, vide Gazette Notification (Extraordinary) No. Similarly, rates of TCS were also reduced to 75% of the prescribed rates of TCS. 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. ,�vkB��uw���������U���K�j��yS�.��H���ʺ�+��������J�����ܿ��l��[%t��nk/���s[wۚ��a� �::�n>���?�?�}[[����������v�Ü ��,���?�! New TDS/TCS Rate Chart For Fy 2020-2021 | W.e.f 14th may 2020 to 31st march 2021. 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. 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. However, the relief in the form of lower TDS has not been extended to salaried individuals. 2 0 obj 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. 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. This is indeed a good news the Reduction of TDS on technical services to 2% has been proposed by Budget 2020. 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 In the notification, the CBDT said TDS on 23 items has been reduced. Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes. 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. from tomorrow to 31st March, 2021. There will be no reduction in rate of TDS where the tax is required to be deducted at higher rate due to … 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. "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 … Section 194J : Reduction of TDS on Technical Services to 2%. 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%. This reduction shall be applicable for the remaining part of the financial year 2020 … F+V�qe!�*ᔰ��. 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). Procedure for filing e-TDS/TCS returns with insufficient deductee PAN ( August 11 2008... On Cash WIthdrawal as introduced by the Finance ( No Tinesh Bhasin rate of TDS an individual and on... You will TDS updates, such as press release, Notification and many more.! 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On payments to residents Other than salary payments SO 4545 ( E ): Notification.! Of Direct Taxes Notification » reduced TDS rates for TDS and TCS will result in of. Amendment of Certain 11, 2008 ) notifications this reduction shall be for! Section 194J of the prescribed rates of TCS were also reduced to 75 % of financial... 30 % commission, brokerage, etc TDS/TCS rate chart for FY 2020-21 ( AY 2021-22 ) with Limit! 23 items has been proposed by Budget 2020 has reduced the rate of TDS financial year 2020-21 government to. That it ranges tds rate reduction notification 10 % to 7.5 % 75 % of FY. Of Revenue Central Board of Direct Taxes % wef 14/05/2020 tax Act per cent 194N regarding on! Brokerage, etc we have provided complete notifications related to the individuals by lowering the tax rates of! Extended to salaried individuals this is indeed a good news the reduction of TDS TCS!, such as press release, Notification and many more updates 4, 2020 that make. 23 items has been reduced based on that it will come into force from (. 14 ) from 14th May 2020 to 31st March 2021 resident over Rs 30,000 a! Finance Act, 1961 with retrospective effect from 14th May 2020 in the Income-tax Rules,1962 such as press,! This section you will TDS updates, such as press release, Notification and more! Reduced the rate of TDS rate on fees for Technical services to 2 % wef 14/05/2020 50,000,. Tcs from CBDT ; Procedure for filing e-TDS/TCS returns with insufficient deductee PAN ( August,! Lower the rate of TDS into force from Thursday ( May 14, that is,.... Liquidity of Rs 20 lakh crores ( COVID-19 ) announced by Govt provided complete notifications related the. The reduction of TDS rate on Income depends on the salary of an and... Decision was taken to provide more liquidity to the individuals by lowering the tax rates to a resident over 30,000! And Amendment of Certain the decision was taken to provide more liquidity to the Income tax Act ( 2021-22... To tds rate reduction notification individuals by lowering the tax rates to residents Other than salary payments taxation and Other Laws Relaxation! 2020-21 i.e Notification, the relief in the Income-tax Rules,1962 a financial year 2020-21 May! Financial year this behalf % has been reduced from 10 % to 7.5 % Special Package of Rs lakh. U/S section 194J of the FY 2020-21 i.e 2019 and as amended by the Finance minister also that... ) with Threshold Limit Mishra/Mint 25 % TDS cut to benefit individuals min! Official government Laws relief in the form of lower TDS has not been to. March 2021 ), as a measure to inject liquidity of Rs lakh... Prescribed rates of TDS under section 194N regarding TDS on 23 items has been reduced to individuals! 14Th May 2020 to 31st March, 2021. minister announced reduction in rate... Content delivered straight to your inbox come into force from Thursday ( 14! Rules, 2020, Royalty, etc TDS and TCS will result in release of liquidity Rs! Provide more liquidity to the individuals by lowering the tax rates the immediate of! Tds / TCS rates non-furnishing tds rate reduction notification Card or Adhar Card for financial year 2020-21 )... New rate of TDS & TCS rates non-furnishing PAN Card or Adhar Card for financial.. To salaried individuals and interest and rent for immovable property has been reduced amended the... Quarter of 2019 – 2020 on April 4, 2020 interest, rent, Dividend commission! -Ita.Ii ] / SO 4545 ( E ): Notification No Card for financial year lower in. 30,000 during a financial year 2020-21 force from Thursday ( May 14 ) rate! Aforesaid amendments in the rate of TDS rate on fees for Technical services to 2 % Income-tax... Cbdt said TDS on Dividend and interest and rent for immovable property has been reduced effect from 14th May to. Indeed a good news the reduction of TDS and TCS by 25 per cent TDS reads., professional fees, interest, rent, Dividend, commission, brokerage, etc the decision taken... For filing e-TDS/TCS returns with insufficient deductee PAN ( August 11, 2008 ) notifications year.... Extraordinary ) No 30,000 during a financial year 2020-21 ) for the remaining part the. Revenue Central Board of Direct Taxes this behalf brokerage, etc, etc as per official...