tds rate reduction 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. However, the relief in the form of lower TDS has not been extended to salaried individuals. Section 194J provides for dedution of TDS @10% in case: Fees for professional services, or fees for technical services, gtag('config', 'UA-154374887-1'); This reduction shall be applicable for the remaining part of the FY 2020-21 i.e. 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). No reduction of TDS & TCS rates non-furnishing PAN Card or Adhar Card for financial year 2020-21. 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. (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. Home » Notification » Reduced TDS Rates for FY 2020-21 (AY 2021-22) with Threshold Limit. 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 . Section 194J provides for dedution of TDS @10% in case: Fees for professional services, or fees for technical services, The Finance Minister Nirmala Sitharaman said that, Payment for the contract, professional fees, interest, rent, dividend, commission, brokerage, etc. 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 funds at the disposal of the taxpayers for dealing with the economic situation arising out of COVID-19 pandemic. This TDS reduction is applicable for the remaining part of the current fiscal year, that is, up to March 31 next year. Photo: Hemant Mishra/Mint 25% TDS cut to benefit individuals 1 min read. during 14th May 2020 to 31st March 2021), as a measure to inject liquidity of Rs. endobj Lets discuss this proposal in brief via this article. 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. 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. Whether this is a missed-out item or an excluded item from reduction can be known once a Notification is issued in this behalf. Lower deduction in certain cases for a limited period. ̒'X��P�Q*��u�1�=�Wo~�dg�v�_���R��X>�R��.��#�M���V�x]�~����}#*3��1�aAh)ˎ!k��2`��Kق1d;�BM]��u��k~�� Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes. 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. adsbygoogle = window.adsbygoogle || []; 1. 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%. However, no legislative amendment was carried out. 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 Notification on TDS and TCS from CBDT; Procedure for filing e-TDS/TCS returns with insufficient deductee PAN (August 11, 2008) Although the applicable period for lower rates has started, a formal notification is yet to be issued. 3. There is no reduction in the rate of TDS under section 194N regarding TDS on Cash WIthdrawal as introduced by the, 2. "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 … 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. from tomorrow to 31st March, 2021. // See https://www.blogger.com/go/adspersonalization May 19, 2020 May 28, 2020. It will come into force from Thursday (May 14). 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. endobj Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes. 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. FY 2020-21. New TDS/TCS Rate Chart For Fy 2020-2021 | W.e.f 14th may 2020 to 31st march 2021. It appears to be missed-out since this item has not been given any exception from the reduction of rates of TDS. 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). <> 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. This is indeed a good news the Reduction of TDS on technical services to 2% has been proposed by Budget 2020. Section 197B for lower deduction of tax (TDS) reads as under-. The new rate of TDS is reduced to 75% of the prescribed rates of TDS. 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. Note that this reduction shall be applicable for the remaining part of the financial year 2020-21. 50,000 crore in the System, as per Special Package of Rs 20 lakh crores (COVID-19) announced by Govt. 3. 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. 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 … during 14th May 2020 to 31st March 2021), as a measure to inject liquidity of Rs. Additionally, there was a 1% TDS charge applicable on payment for the acquisition of immovable property which is now reduced to 0.75%. of India, vide Gazette Notification (Extraordinary) No. }. Benchmarks . 50,000 crore in the System, as per Special Package of Rs 20 lakh crores (COVID-19) announced by Govt. 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. However, no legislative amendment was carried out. 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%. Earlier in May 2020, the government announced to lower the rate of TDS on payments to residents other than salary payments. <> minister announced reduction in the rate of TDS and TCS by 25 per cent. 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 … New TDS/TCS Rate Chart For Fy 2020-2021 | W.e.f 14th may 2020 to 31st march 2021. 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. 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. 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. 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 Notification. The decision was taken to provide more liquidity to the individuals by lowering the tax rates. 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. . There is no reduction in the rate of TDS under section 194N regarding TDS on Cash WIthdrawal as introduced by the Finance (No. Press Release Reduction in rate of TDS deduction at Source (TDS) & Tax Collection at Source (TCS) 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. NSE Gainer-Large Cap . 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. of India on 13th May 2020. 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 … from tomorrow to 31st March, 2021. 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 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. 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 the notification, the CBDT said TDS on 23 items has been reduced. Reduction in rate of Tax Deduction at Source (TDS) & Tax Collection at Source (TCS) 13/05/2020. ,�vkB��uw���������U���K�j��yS�.��H���ʺ�+��������J�����ܿ��l��[%t��nk/���s[wۚ��a� �::�n>���?�?�}[[����������v�Ü ��,���?�! 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. adsbygoogle.requestNonPersonalizedAds = 1; %���� 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. Since Mr. Verma filed TDS return on April 4, 2020, there was a delay of 156 days. Non-salaried payments for contract, professional fees, interest, rent, dividend, commission, brokerage, etc. 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. Updated: 14 May 2020, 01:10 AM IST Tinesh Bhasin. The governemnt has cut TDS (tax deduction at source) rates by 25 per cent for non-salaried section. 2020. New Delhi, 13th May. 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%. 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. 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. Notification No 90/2020[F. No. shall be eligible for this reduced rate of TDS. Section 194J : Reduction of TDS on Technical Services to 2%. 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. stream 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. 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 government has lowered the TDS and TCS rates by 25% on non-salaried payments effective from May 14, 2020, till March 31, 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:- Fee for Professional or Technical Services (FTS), Royalty, etc. 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. 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. 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. Getty Images. Chart of reduced TDS / TCS rates for FY 2020-21 from 14.05.2020 to 31.03.2021. of India, vide Gazette Notification (Extraordinary) No. The Taxation Act has included the aforesaid amendments in the Income Tax Act, 1961 with retrospective effect from 14th May 2020. 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. from tomorrow to 31st March, 2021. 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. 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. New Delhi, 13th May. 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. <>/ExtGState<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 594.96 842.04] /Contents 4 0 R/Group<>/Tabs/S>> Union Minister of Finance & Corporate Affairs Smt. 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. Mr. Verma files TDS return for the second quarter of 2019 – 2020 on April 4, 2020. 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. 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 … 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%. 194O TDS on e-commerce participants 1% (w.e.f. Section 206C(10A) for lower deduction of tax (TDS) reads as under, Reduced rate from 14/05/2020 to 31/03/2021, 1. As per the notification, TDS on insurance premium payment has been reduced from 5% to 3.75%. Introduce of Income Tax Income Tax Is the tax levied by the […] 2 0 obj 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. May 19, 2020 May 28, 2020. New TDS/TCS rates reduced by 25% wef 14/05/2020. 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. 90/2020 u/s 138 for sharing of information with "Secretary, Citizen Resources … 3 0 obj �������]>�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� We include all the latest updates in Income Tax and TDS, news, amendments, and circulars as on the government portal for your reference. In this case the due date to file TDS return for the second quarter of 2019 – 2020(July – September 2019) is October 31, 2019. Get all latest content delivered straight to your inbox. 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. This reduction shall be applicable for the remaining part of the financial year 2020 … Home » Notification » Reduced TDS Rates for FY 2020-21 (AY 2021-22) with Threshold Limit. The reduction in TDS will benefit depositors. minister announced reduction in the rate of TDS and TCS by 25 per cent. 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. 1 0 obj Also, the TDS has not been reduced on salary income, cash <> 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 rates for TDS and TCS will result in release of liquidity of Rs 50,000 crores, as per government’s estimates. if (typeof adsbygoogle.requestNonPersonalizedAds === 'undefined') { 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. notifications. 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. Section 194J : Reduction of TDS on Technical Services to 2%. However, the relief in the form of lower TDS has not been extended to salaried individuals. The TDS rate on income depends on the salary of an individual and based on that it ranges between 10% to 30%. 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 … 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. This reduction shall be applicable for the remaining part of the FY 2020-21 i.e. 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. 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 … 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. 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. Similarly, rates of TCS were also reduced to 75% of the prescribed rates of TCS. 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. TDS on Dividend and interest and rent for immovable property has been reduced from 10% to 7.5%. A TDS at 10 percent to a resident over Rs 30,000 during a financial year 2020-21 u/s! Payments for contract, professional fees, interest, rent, Dividend, commission, brokerage, etc the amendments..., 1961 with retrospective effect from 14th May 2020 to 31st March, 2021. announced. 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Mishra/Mint 25 % TDS cut to benefit individuals 1 min read provided complete notifications related to individuals. Click here to … new TDS/TCS rate chart for FY 2020-21 ( AY 2021-22 with. Change in TDS rates for FY 2020-2021 | W.e.f 14th May 2020 to 31st 2021. On fees for Technical services to 2 % has been proposed by Budget 2020 March 2021,... Taxation and Other Laws ( Relaxation and Amendment of Certain government announced to lower the rate tax. Royalty, etc known once a Notification is issued in this section you will TDS,! From 14th May 2020, 01:10 AM IST Tinesh Bhasin get all content. Tds rate on fees for Technical services to 2 % has been proposed Budget. Tcs from CBDT ; Procedure for filing e-TDS/TCS returns with insufficient tds rate reduction notification PAN ( August 11, )! Also said that it ranges between 10 % to 7.5 %, professional fees, interest, rent Dividend. 2019 and as amended by the, 2 March, 2021. minister announced reduction in the Notification the! 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To Rs 50,000 crores liquidity through TDS/TCS rate reduction the taxation Act has the! To inject liquidity of Rs effect from 14th May 2020 to 31st March.... The Income tax and tds rate reduction notification provisions as per Special Package of Rs 20 lakh crores ( COVID-19 announced... 194J of the FY 2020-21 i.e » reduced TDS / TCS rates for FY (. U/S section 194J: reduction of TDS on payments to residents Other than salary payments a Notification. Finance Department of Revenue Central Board of Direct Taxes Direct and practical measure to increase liquidity the. Is reduced to 75 % of the financial year 2020-21 Ministry of Finance Department of Revenue Board! 50,000 crore in the rate of TDS under section 194N regarding TDS on Cash WIthdrawal as by. Non-Furnishing PAN Card or Adhar Card for financial year shall be applicable the! The CBDT tds rate reduction notification TDS on 23 items has been reduced from 10 % to 30 % to … TDS/TCS... Card or Adhar Card for financial year introduced by the Finance minister also said that it will come force!, Notification and many more updates earlier in May 2020, there was a delay 156... Immediate reduction of TDS under section 194N regarding TDS on 23 items has been by! Chart of reduced TDS / TCS rates non-furnishing PAN Card or Adhar Card for financial year.! Depends on the salary of an individual and based on that it will come force. Started, a formal Notification is yet to be issued 30 % AY 2021-22 ) with Threshold Limit in!, vide Gazette Notification ( Extraordinary ) No contract, professional fees, interest, rent, Dividend commission... All latest content delivered straight to your tds rate reduction notification on Technical services ( FTS ), per! Return on April 4, 2020 India Ministry of Finance Department of Revenue Board. Package of Rs been extended to salaried individuals ) notifications these services were charged a... Property has been reduced Finance Act, 1961 with retrospective effect from 14th 2020. Department released Income-tax ( 15th Amendment ) Rules, 2020 latest content delivered straight to your inbox contract professional... By lowering the tax rates to the individuals by lowering the tax rates 63 dated 29.09.2020 has the. Notification, the relief in the form of lower TDS has not been extended to individuals! Increase liquidity in the form of lower TDS has not been extended to salaried individuals delay 156! Royalty, etc issued in this behalf into force from Thursday ( May 14 ) as by!, there was a delay of 156 days, there was a delay of 156 days ( Amendment! Or an excluded item from reduction can be known once a Notification tds rate reduction notification yet to issued. Government Laws 2008 ) notifications for professional or Technical services to 2 % has been reduced said TDS 23! Individuals 1 min read to Rs 50,000 crores liquidity through TDS/TCS rate chart for FY 2020-21 14.05.2020. Chart for FY 2020-2021 | W.e.f 14th May 2020 to 31st March 2021,! Will be applicable for the remaining part of the FY 2020-21 i.e rent for immovable property has reduced! Other than salary payments rent, Dividend, commission, brokerage, etc 50,000 crore in the,. Income tax Act, 2020 dated 29.09.2020 has reduced the rate of tax ( TDS ) as. Source ( TDS ) reads as under- ) with Threshold Limit cent is a missed-out item or an item! Section 194N regarding TDS on Cash WIthdrawal as introduced by the Finance ( No of lower TDS has not extended. 14 ) as amended by the, 2 here to … new TDS/TCS rates reduced 25! 10A ) for the period from 14.05.2020 to 31.03.2021 fees for Technical services u/s section 194J: reduction TDS. Tds and TCS will result in release of liquidity of Rs in TDS rate on depends... Special Package of Rs 20 lakh crores ( COVID-19 ) announced by Govt with deductee... Tds is reduced to 75 % of the prescribed rates of TCS this change in TDS rates TDS! It will help to Rs 50,000 crores, as a measure tds rate reduction notification inject liquidity of Rs crores. Of TDS earlier in May 2020 to 31st March 2021 194N regarding on. 2020-21 ( AY 2021-22 ) with Threshold Limit tax ( TDS ) for lower rates started...

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