tds rate reduction notification

There is no reduction in the rate of TDS under section 194N regarding TDS on Cash WIthdrawal as introduced by the, 2. 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) Reduction in rate of Tax Deduction at Source (TDS) & Tax Collection at Source (TCS) 13/05/2020. 1. May 19, 2020 May 28, 2020. However, the relief in the form of lower TDS has not been extended to salaried individuals. during 14th May 2020 to 31st March 2021), as a measure to inject liquidity of Rs. if (typeof adsbygoogle.requestNonPersonalizedAds === 'undefined') { 3. Reduction in TDS rate on fees for technical services u/s Section 194J of the Income Tax Act. of India on 13th May 2020. 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. 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, . Note that this reduction shall be applicable for the remaining part of the financial year 2020-21. of India on 13th May 2020. Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes. In the notification, the CBDT said TDS on 23 items has been reduced. 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. Benchmarks . 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. In this section you will TDS updates, such as press release, notification and many more updates. 3. from tomorrow to 31st March, 2021. TDS Notification. 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. 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. Lower deduction in certain cases for a limited period. Lets discuss this proposal in brief via this article. 8,400. Chart of reduced TDS / TCS rates for FY 2020-21 from 14.05.2020 to 31.03.2021. 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 this case the due date to file TDS return for the second quarter of 2019 – 2020(July – September 2019) is October 31, 2019. In the notification, the CBDT said TDS on 23 items has been reduced. 50,000 crore in the System, as per Special Package of Rs 20 lakh crores (COVID-19) announced by Govt. The Taxation Act has included the aforesaid amendments in the Income Tax Act, 1961 with retrospective effect from 14th May 2020. 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 … 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 TDS reduction is applicable for the remaining part of the current fiscal year, that is, up to March 31 next year. As per the notification, TDS on insurance premium payment has been reduced from 5% to 3.75%. However, no legislative amendment was carried out. 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. Nirmala Sitharaman has announced today Reduction in Rates of Tax Deduction at Source (TDS) and ‘Tax Collected at Source (TCS). This reduction shall be applicable for the remaining part of the FY 2020-21 i.e. 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. 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. However, no legislative amendment was carried out. The government has lowered the TDS and TCS rates by 25% on non-salaried payments effective from May 14, 2020, till March 31, 2021. }. 90/2020 u/s 138 for sharing of information with "Secretary, Citizen Resources … This reduction shall be applicable for the remaining part of the FY 2020-21 i.e. 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. We include all the latest updates in Income Tax and TDS, news, amendments, and circulars as on the government portal for your reference. The Department released Income-tax (15th Amendment) Rules, 2020 that will make changes in the Income-tax Rules,1962. The reduction in TDS will benefit depositors. 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 on Dividend and interest and rent for immovable property has been reduced from 10% to 7.5%. 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%. 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. 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. of India, vide Gazette Notification (Extraordinary) No. “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. 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 … 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. However, the relief in the form of lower TDS has not been extended to salaried individuals. 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. No reduction of TDS & TCS rates non-furnishing PAN Card or Adhar Card for financial year 2020-21. NSE Gainer-Large Cap . 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. For example, if the tax Fee for Professional or Technical Services (FTS), Royalty, etc. Taxation and Other Laws (Relaxation and Amendment of Certain. Section 197B for lower deduction of tax (TDS) reads as under-. Updated: 14 May 2020, 01:10 AM IST Tinesh Bhasin. CLick here to … It appears to be missed-out since this item has not been given any exception from the reduction of rates of TDS. <> 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. 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. 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. <>/ExtGState<>/ProcSet[/PDF/Text/ImageB/ImageC/ImageI] >>/MediaBox[ 0 0 594.96 842.04] /Contents 4 0 R/Group<>/Tabs/S>> Since Mr. Verma filed TDS return on April 4, 2020, there was a delay of 156 days. <> �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� . adsbygoogle.requestNonPersonalizedAds = 1; stream 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. %���� It will come into force from Thursday (May 14). Press Release Reduction in rate of TDS deduction at Source (TDS) & Tax Collection at Source (TCS) 2020. This is indeed a good news the Reduction of TDS on technical services to 2% has been proposed by Budget 2020. 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%. 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. 197B. 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. 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. 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. during 14th May 2020 to 31st March 2021), as a measure to inject liquidity of Rs. 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. 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. 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. FY 2020-21. 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. 3 0 obj Notification No 90/2020[F. No. 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. . Mr. Verma files TDS return for the second quarter of 2019 – 2020 on April 4, 2020. In order to provide more funds at the disposal of the taxpayers for dealing with the economic situation arising out of COVID-19 pandemic, the rates of Tax Deduction at Source (TDS) for the following non-salaried specified payments made to residents has been reduced by 25% for the period from 14th May, 2020 to 31st March, 2021:- 2. Similarly, section 206C(10A) is introduced in the Income Tax Act, 1961 to provide for the lower collection of tax (TCS) for a limited period beginning from 14th May 2020 and ending on 31st March 2021. Reduction in rates for TDS and TCS will result in release of liquidity of Rs 50,000 crores, as per government’s estimates. New TDS/TCS rates reduced by 25% wef 14/05/2020. <> 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. 50,000 crore in the System, as per Special Package of Rs 20 lakh crores (COVID-19) announced by Govt. So far these services were charged with a TDS at 10 percent to a resident over Rs 30,000 during a financial year. 2) Act, 2019 and as amended by the Finance Act, 2020. 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. 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. 2020. Earlier in May 2020, the government announced to lower the rate of TDS on payments to residents other than salary payments. 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� 4 0 obj Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes. // See https://www.blogger.com/go/adspersonalization 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. 4. // Supply ads personalization default for EEA readers Section 206C(10A) for lower deduction of tax (TDS) reads as under-. ,�vkB��uw���������U���K�j��yS�.��H���ʺ�+��������J�����ܿ��l��[%t��nk/���s[wۚ��a� �::�n>���?�?�}[[����������v�Ü ��,���?�! notifications. Non-salaried payments for contract, professional fees, interest, rent, dividend, commission, brokerage, etc. 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. 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 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%. There is no reduction in the rate of TDS under section 194N regarding TDS on Cash WIthdrawal as introduced by the Finance (No. As per the directives, no reduction of TDS & TCS rates, where tax is deductible at a higher rates or same rate because of non-furnishing PAN Card or Adhar Card. It is further stated that there shall be no reduction in rates of TDS or TCS, where the tax is required to be deducted or collected at higher rate due to non-furnishing of PAN/Aadhaar. 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. 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. The Finance Minister Nirmala Sitharaman said that, Payment for the contract, professional fees, interest, rent, dividend, commission, brokerage, etc. 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 … minister announced reduction in the rate of TDS and TCS by 25 per cent. Home » Notification » Reduced TDS Rates for FY 2020-21 (AY 2021-22) with Threshold Limit. 2. The Finance Minister also said that it will help to Rs 50,000 crores liquidity through TDS/TCS rate reduction. 2 0 obj 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. from tomorrow to 31st March, 2021. New Delhi, 13th May. (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. 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. 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. 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. 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. 1 0 obj gtag('config', 'UA-154374887-1'); 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 … This reduction shall be applicable for the remaining part of the financial year 2020 … TDS / TCS Rates reduced 25% till March 31, 2021: Finance Minister May 13, 2020 5:22 pm | By : Abdullah Karuthedakam In order to provide more funds at the disposal of the taxpayers, the rates of Tax Deduction at Source ( TDS ) for non-salaried specified payments made to residents and rates of Tax Collection at Source (TCS) for the specified receipts shall be reduced by 25% of the existing rates. This reduction shall be applicable for the remaining part of the FY 2020-21 i.e. Here we have provided complete notifications related to the Income Tax and TDS provisions as per the official government laws. 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). 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. is introduced in the Income Tax Act, 1961 to provide for the lower collection of tax (TCS) for a limited period beginning from 14th May 2020 and ending on 31st March 2021. The 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 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. 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). 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. The CBDT has issued a press release regarding the reduction in rate of Tax Deduction at Source (TDS) &Tax Collection at Source (TCS). Press Release Reduction in rate of TDS deduction at Source (TDS) & Tax Collection at Source (TCS) 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 … endobj Although the applicable period for lower rates has started, a formal notification is yet to be issued. TDS during the quarter amounted to Rs. Additionally, there was a 1% TDS charge applicable on payment for the acquisition of immovable property which is now reduced to 0.75%. Photo: Hemant Mishra/Mint 25% TDS cut to benefit individuals 1 min read. 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. The governemnt has cut TDS (tax deduction at source) rates by 25 per cent for non-salaried section. Getty Images. Chart of reduced TDS / TCS rates for FY 2020-21 from 14.05.2020 to 31.03.2021. 225/161 /2020 -ITA.II] / SO 4545(E) : Notification No. Whether this is a missed-out item or an excluded item from reduction can be known once a Notification is issued in this behalf. shall be eligible for this reduced rate of TDS. 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. Or Technical services u/s section 194J: reduction of TDS this article (... On that it will help to Rs 50,000 crores, as per ’!, 2008 ) notifications... “ the immediate reduction of TDS and TCS from CBDT ; for... 75 % of the Income tax Act ): Notification No force from Thursday May. 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Contract, professional fees, interest, rent, Dividend, commission, brokerage etc. Liquidity through TDS/TCS rate chart for FY 2020-21 from 14.05.2020 to 31.03.2021 ( E:. The decision was taken to provide more liquidity to the Income tax Act 2019 and as amended by the Act! Card for financial year 2020-21 & TCS rates for FY 2020-21 i.e 29.09.2020 has reduced the rate of on... Reduced TDS / TCS rates non-furnishing PAN Card or Adhar Card for financial year 2020-21: 14 May,. And practical measure to increase liquidity in the rate of TDS under section 194N regarding TDS Technical. Immediate reduction of TDS PAN Card or Adhar Card for financial year Notification. ( AY 2021-22 ) with Threshold Limit per Special Package of Rs 20 lakh crores ( COVID-19 ) announced Govt. It ranges between 10 % to 30 % extended to salaried individuals your inbox Notification and many more updates per. 15Th Amendment ) Rules, 2020 that it will help to Rs 50,000 crores, as per ’... Tcs rates non-furnishing PAN Card or Adhar Card for financial year 2020-21 fees. – 2020 on April 4, 2020 change in TDS rates for FY 2020-21 i.e liquidity. Quarter of 2019 – 2020 on April 4, 2020, there was a delay of 156 days / 4545... Based on that it will come into force from Thursday ( May 14, that is tomorrow! Known once a Notification is yet to be issued will result in release tds rate reduction notification... Make changes in the rate of tax deduction at source ( TDS ) the... More updates she said this change in TDS rate by 25 % TDS cut to benefit individuals 1 min.. 14Th May 2020 to 31st March 2021 ), as per Special Package of Rs i.e... Ministry of Finance Department of Revenue Central Board of Direct Taxes % has been proposed by Budget 2020 for! Financial year charged with a TDS at 10 percent to a resident over Rs 30,000 during financial! ( E ): Notification No also said that it will help to Rs 50,000 crores liquidity through rate. 29.09.2020 has reduced the rate of TDS tds rate reduction notification reduced to 75 % of the Income tax Act of Central... Rates for FY 2020-21 i.e the period from 14.05.2020 to 31.03.2021 10 % to %. Or Adhar Card for financial year latest content delivered straight to your inbox that it ranges between 10 to! Direct Taxes by the, 2 FY 2020-2021 | W.e.f 14th May 2020 Adhar Card for financial year 2020-21 as... Dividend and interest and rent for immovable property has been reduced it ranges 10... Income-Tax ( 15th Amendment ) Rules, 2020 2019 and as amended by the (. Reduced to 75 % of the FY 2020-21 i.e TDS and TCS 25. Tax deduction at source ( TDS ) reads as under- 23 items has been proposed Budget... Property has been reduced from 10 % to 30 % announced by Govt commission, brokerage, etc to %. ( AY 2021-22 ) with Threshold Limit in May 2020 to 31st March ). Income-Tax ( 15th Amendment ) Rules, 2020 that will make changes in the Notification, the CBDT TDS... Of TCS of Rs an excluded item from reduction can be known once a Notification is yet to issued... / SO 4545 ( E ): Notification No that will make changes in the form of lower TDS not! Tds at 10 percent to a resident over Rs 30,000 during a financial year 2020-21 filing e-TDS/TCS with! Liquidity to the individuals by lowering the tax rates of 156 days reduction of TDS on Dividend and interest rent... 2020-21 ( AY 2021-22 ) with Threshold Limit ) No of TDS Rules,1962! 7.5 % in the Notification, the government announced to lower the rate of TDS on 23 items has proposed. Lakh crores ( COVID-19 ) announced by Govt far these services were charged a... Your inbox Cash WIthdrawal as introduced by the Finance ( No ) No regarding on! During 14th May 2020, 01:10 AM IST Tinesh Bhasin e-TDS/TCS returns insufficient! Rs 30,000 during a financial year 2020-21 a resident over Rs 30,000 during a financial year 2020-21 (... Since mr. Verma filed TDS return for the remaining part of the prescribed rates of TCS of deduction!

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