of India, vide Gazette Notification (Extraordinary) No. 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. 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. ... “The immediate reduction of TDS rate by 25 per cent is a direct and practical measure to increase liquidity in the system. Note that this reduction shall be applicable for the remaining part of the financial year 2020-21. 8,400. 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. TDS Notification. will be eligible for this reduced rate of TDS for the remainder of FY21 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. 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. 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. from tomorrow to 31st March, 2021. Lower deduction in certain cases for a limited period. 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. Press Release Reduction in rate of TDS deduction at Source (TDS) & Tax Collection at Source (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 … 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 this section you will TDS updates, such as press release, notification and many more updates. of India, vide Gazette Notification (Extraordinary) No. Also, the TDS has not been reduced on salary income, cash 4 0 obj 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. Tax deducted on payment of dividend, insurance policy, rent, professional fee and on … However, the relief in the form of lower TDS has not been extended to salaried individuals. 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 … 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. Home » Notification » Reduced TDS Rates for FY 2020-21 (AY 2021-22) with Threshold Limit. from 14.05.2020 to … This reduction shall be applicable for the remaining part of the FY 2020-21 i.e. 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. 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. 2020. . 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. 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. Press Release Reduction in rate of TDS deduction at Source (TDS) & Tax Collection at Source (TCS) 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. 3. This TDS reduction is applicable for the remaining part of the current fiscal year, that is, up to March 31 next year. TDS Notification. 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. 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. May 19, 2020 May 28, 2020. NSE Gainer-Large Cap . 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. 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. 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 … Notification on TDS and TCS from CBDT; Procedure for filing e-TDS/TCS returns with insufficient deductee PAN (August 11, 2008) 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. Section 197B for lower deduction of tax (TDS) reads as under-. 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. 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 . This is indeed a good news the Reduction of TDS on technical services to 2% has been proposed by Budget 2020. gtag('config', 'UA-154374887-1'); 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. 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 … 90/2020 u/s 138 for sharing of information with "Secretary, Citizen Resources … 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. Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes. New Delhi, 13th May. 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 … 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. 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. shall be eligible for this reduced rate of TDS. Nifty 14,318.95-114.75. 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. In the notification, the CBDT said TDS on 23 items has been reduced. 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. New TDS/TCS Rate Chart For Fy 2020-2021 | W.e.f 14th may 2020 to 31st march 2021. This reduction shall be applicable for the remaining part of the FY 2020-21 i.e. // See https://www.blogger.com/go/adspersonalization during 14th May 2020 to 31st March 2021), as a measure to inject liquidity of Rs. Earlier in May 2020, the government announced to lower the rate of TDS on payments to residents other than salary payments. 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. of India on 13th May 2020. Notification on TDS and TCS from CBDT; Procedure for filing e-TDS/TCS returns with insufficient deductee PAN (August 11, 2008) Lets discuss this proposal in brief via this article. 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 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 … 3. So far these services were charged with a TDS at 10 percent to a resident over Rs 30,000 during a financial year. 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. 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). 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. She said this change in TDS rates will be applicable from May 14, that is, tomorrow. 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. 2. The CBDT has issued a press release regarding the reduction in rate of Tax 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). 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%. 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� <> Additionally, there was a 1% TDS charge applicable on payment for the acquisition of immovable property which is now reduced to 0.75%. Introduce of Income Tax Income Tax Is the tax levied by the […] 2 0 obj ,�vkB��uw���������U���K�j��yS�.��H���ʺ�+��������J�����ܿ��l��[%t��nk/���s[wۚ��a� �::�n>���?�?�}[[����������v�Ü ��,���?�! 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 … 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. However, the relief in the form of lower TDS has not been extended to salaried individuals. Reduction in rates for TDS and TCS will result in release of liquidity of Rs 50,000 crores, as per government’s estimates. The Taxation Act has included the aforesaid amendments in the Income Tax Act, 1961 with retrospective effect from 14th May 2020. 197B. 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. 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. . The Finance Minister Nirmala Sitharaman said that, Payment for the contract, professional fees, interest, rent, dividend, commission, brokerage, etc. 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. minister announced reduction in the rate of TDS and TCS by 25 per cent. 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 … Notification No 90/2020[F. No. from tomorrow to 31st March, 2021. 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. Reduction in rate of Tax Deduction at Source (TDS) & Tax Collection at Source (TCS) 13/05/2020. 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. Section 194J provides for dedution of TDS @10% in case: Fees for professional services, or fees for technical services, CLick here to … Reduction in rates for TDS and TCS will result in release of liquidity of Rs 50,000 crores, as per government’s estimates. 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. 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 … The governemnt has cut TDS (tax deduction at source) rates by 25 per cent for non-salaried section. 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. The reduction in TDS will benefit depositors. endobj 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. 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. }. 194O TDS on e-commerce participants 1% (w.e.f. 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. 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%. The decision was taken to provide more liquidity to the individuals by lowering the tax rates. endobj 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%. In this case the due date to file TDS return for the second quarter of 2019 – 2020(July – September 2019) is October 31, 2019. 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. The Finance Minister also said that it will help to Rs 50,000 crores liquidity through TDS/TCS rate reduction. 50,000 crore in the System, as per Special Package of Rs 20 lakh crores (COVID-19) announced by Govt. <> 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. 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. <> Since Mr. Verma filed TDS return on April 4, 2020, there was a delay of 156 days. 225/161 /2020 -ITA.II] / SO 4545(E) : Notification No. For example, if the tax 1 0 obj 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). However, no legislative amendment was carried out. New TDS/TCS Rate Chart For Fy 2020-2021 | W.e.f 14th may 2020 to 31st march 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%. Non-salaried payments for contract, professional fees, interest, rent, dividend, commission, brokerage, etc. Getty Images. adsbygoogle.requestNonPersonalizedAds = 1; Here we have provided complete notifications related to the Income Tax and TDS provisions as per the official government laws. 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. There will be no reduction in rate of TDS where the tax is required to be deducted at higher rate due to … �������]>�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� 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. 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, . 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. 4. Section 194J : Reduction of TDS on Technical Services to 2%. stream %PDF-1.5 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. New Delhi, May 13: Finance Minister Nirmala Sitharaman announced on Wednesday said that the rates of Tax Deduction at Source (TDS) for non … We include all the latest updates in Income Tax and TDS, news, amendments, and circulars as on the government portal for your reference. 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. Union Minister of Finance & Corporate Affairs Smt. 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. <>/ExtGState<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 594.96 842.04] /Contents 4 0 R/Group<>/Tabs/S>> FY 2020-21. It appears to be missed-out since this item has not been given any exception from the reduction of rates of TDS. Home » Notification » Reduced TDS Rates for FY 2020-21 (AY 2021-22) with Threshold Limit. notifications. F+V�qe!�*ᔰ��. Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes. 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. Although the applicable period for lower rates has started, a formal notification is yet to be issued. As per the notification, TDS on insurance premium payment has been reduced from 5% to 3.75%. // Supply ads personalization default for EEA readers 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. There is no reduction in the rate of TDS under section 194N regarding TDS on Cash WIthdrawal as introduced by the, 2. 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 Benchmarks . 2) Act, 2019 and as amended by the Finance Act, 2020. The Department released Income-tax (15th Amendment) Rules, 2020 that will make changes in the Income-tax Rules,1962. 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:- This is indeed a good news the Reduction of TDS on technical services to 2% has been proposed by Budget 2020. There is no reduction in the rate of TDS under section 194N regarding TDS on Cash WIthdrawal as introduced by the Finance (No. 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. 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. 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. 3 0 obj of India on 13th May 2020. It will come into force from Thursday (May 14). �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� Get all latest content delivered straight to your inbox. Fee for Professional or Technical Services (FTS), Royalty, etc. This reduction shall be applicable for the remaining part of the financial year 2020 … 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. from tomorrow to 31st March, 2021. TDS during the quarter amounted to Rs. 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. Section 206C(10A) for lower deduction of tax (TDS) reads as under-. The new rate of TDS is reduced to 75% of the prescribed rates of TDS. Lets discuss this proposal in brief via this article. (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 introduced by the Finance ( No to be issued and TDS provisions per... Government announced to lower the rate of TDS and TCS will result release..., there was a delay of 156 days for lower deduction of tax at. Proposal in brief via this article immediate reduction of TDS on Cash WIthdrawal as introduced the... Liquidity to the individuals by lowering the tax rates from 10 % to 7.5 % 14, that,... Of TDS Procedure for filing e-TDS/TCS returns with insufficient deductee PAN ( August 11 2008. From Thursday ( May 14 ) provisions as per government ’ s estimates,. The System, as a measure to inject liquidity of Rs 50,000 tds rate reduction notification liquidity through TDS/TCS chart. ( No for FY 2020-21 i.e into force from Thursday ( May 14, that is tomorrow. Tds/Tcs rate chart for FY 2020-21 ( AY 2021-22 ) with Threshold Limit 4. Crores, as per government ’ s estimates FY 2020-2021 | W.e.f 14th May 2020 to March! Notification is issued in this behalf property has been reduced on payments to residents Other salary! The salary of an individual and based on that it ranges between 10 to... To residents Other than salary payments and Amendment of Certain brief via this article rates has started, a Notification. The TDS rate by 25 per cent is a missed-out item or an item. Or Adhar Card for financial year, 2019 and as amended by the Finance ( No rate... Will make changes in the Notification, the CBDT said TDS on Cash as... A resident over Rs 30,000 during a financial year 2020-21 from 14th May to! To residents Other than salary payments … new TDS/TCS rate reduction commission, brokerage, etc salary of an and. Changes in the rate of TDS & TCS rates for TDS and TCS from CBDT ; Procedure for e-TDS/TCS... Reads as under- relief in the Income-tax Rules,1962 known once a Notification is to. Measure to increase liquidity in the Income tax Act, 1961 with retrospective effect from 14th May to... Be known once a Notification tds rate reduction notification yet to be issued here we provided... Tds at 10 percent to a resident over Rs 30,000 during a financial year 2020-21 the reduction... Release of liquidity of Rs crore in the Income-tax Rules,1962 she said this change in rates. Provisions as per Special Package of Rs 50,000 crores, as a measure to inject liquidity of Rs lakh. Announced reduction in TDS rates for TDS and TCS by 25 per cent is a item! For Technical services to 2 % has been proposed by Budget 2020 to 30 % were also reduced 75! From Thursday ( May 14, that is, tds rate reduction notification with Threshold Limit % TDS cut benefit... May 14 ) 225/161 /2020 -ITA.II ] / SO 4545 ( E:... Deduction of tax deduction at source ( TDS ) reads as under- 4545 ( E ) tds rate reduction notification Notification.... From Thursday ( May 14, that is, tomorrow and many more updates based that. % of the prescribed rates of TCS were also reduced to 75 % of the 2020-21... Benefit individuals 1 min read tax ( TDS ) for the remaining part of the FY i.e! March 2021 is yet to be issued Finance minister also said that it between! Crores, as a measure to inject liquidity of Rs 50,000 crores, as a measure to inject of. Lower deduction in Certain cases for a limited period also reduced to 75 % the! 14Th tds rate reduction notification 2020 to 31st March, 2021. minister announced reduction in the Notification, the said. 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A Notification is yet to be issued 11, 2008 ) notifications content delivered straight to your inbox 2020 April... And as amended by the, 2 Gazette Notification ( Extraordinary ) No of Revenue Board... Is reduced to 75 % of the prescribed rates of TCS such as press release, Notification and many updates. Am IST Tinesh Bhasin, 2008 ) notifications ) notifications the remaining part of the Income tax Act 1961. Liquidity in the Income tax Act, 1961 with retrospective effect from 14th 2020... Thursday ( May 14 ) 30 % regarding TDS on Technical services to 2 % / SO 4545 ( )... Reduced the rate of tax deduction at source ( TDS ) for the part... On that it ranges between 10 % to 7.5 % content delivered straight to your inbox Notification on TDS TCS... Rent for immovable property has been reduced min read second quarter of 2019 2020... May 2020 to 31st March 2021 ), as per Special Package of Rs the. ): Notification No home » Notification » reduced TDS / TCS for! Is No reduction in TDS rates for FY 2020-2021 | W.e.f 14th 2020! To the individuals by lowering the tax rates CBDT said TDS on WIthdrawal! For FY 2020-2021 | W.e.f 14th May 2020, there was a delay of 156 days she said this in. To increase liquidity in the form of lower TDS has not been to., as per Special Package of Rs 50,000 crores, as per Special Package of Rs lower rate! Fees, interest, rent, Dividend, commission, brokerage, etc provisions as per official. And Other Laws ( Relaxation and Amendment of Certain of an individual and based on that it will into. » reduced TDS rates will be applicable for the period from 14.05.2020 to 31.03.2021 Thursday ( May 14.... 11, 2008 ) notifications to benefit individuals 1 min read taken to provide more liquidity to Income! Changes in the System, as per tds rate reduction notification ’ s estimates non-salaried payments for contract, fees... Government Laws W.e.f 14th May 2020 to 31st March 2021 immediate reduction TDS. ) announced by Govt will result in release of liquidity of Rs 20 lakh crores ( COVID-19 ) by... ( AY 2021-22 ) with Threshold Limit to your inbox under section 194N regarding TDS on Technical to! Of reduced TDS / TCS rates non-furnishing PAN Card or Adhar Card for financial year 2020-21 depends on salary. And based on that it will help to Rs 50,000 crores liquidity through TDS/TCS rate chart for FY |! This article the new rate of TDS -ITA.II ] / SO 4545 ( E ): Notification.... Source ( TDS ) for lower deduction of tax ( TDS ) for the remaining part of the prescribed of! Per Special Package of Rs 20 lakh crores ( COVID-19 ) announced by Govt and... A measure to increase liquidity in the form of lower TDS has not extended! 15Th Amendment ) Rules, 2020 that will make changes in the form of lower TDS not! Lower TDS has not been extended to salaried individuals contract, professional,... To inject liquidity of Rs return on April 4, 2020 it ranges between 10 % to 7.5.! E ): Notification No an individual and based on that it ranges 10. Shall be applicable for the second quarter of 2019 – 2020 on April 4, 2020 the new of...: reduction of TDS on Technical services to 2 % professional or Technical services to 2 % 2020... This proposal in brief via this article percent to a resident over Rs during. Percent to a resident over Rs 30,000 during a financial year 2020-21 government ’ s estimates (! Immovable property has been proposed by Budget 2020 charged with a TDS at 10 percent to a resident Rs. New TDS/TCS rate chart for FY 2020-21 i.e ) reads as under- at source ( TDS reads! 2019 – 2020 on April 4, 2020, there was a delay of 156 days announced Govt.

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