tds, interest rate reduced

It will be beneficial for both the deductor and the deductee in order to restore the cash flow and stabilize the economic condition in India. Alongside, the rent crossing the amount of Rs 50,000/month TDS will be charged at the rate of 3.75% reduced from the earlier rate of 5%. 100. In the press conference held on May 13, 2020 the Finance Minister, Smt. Further, the rate of Tax Collection at Source (TCS) for the following specified receipts has also been reduced by 25% for the period from 14th May, 2020  to 31st March, 2021:-, TCS Rate Chart for FY 2020-21 Pre & Post 14th May 2020. 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. Kindly note that a cut in TDS rate does not mean a reduction in your tax liability. TDS, TCS reduced by 25%. 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 … of(a) Parking lot. Latest TDS Rates FY 2020-21 (Assessment Year 2021-22). Payment for contract, professional fees, interest, rent, dividend, commission, brokerage etc is eligible for this reduced rate of TDS, Sitharaman said. In case any delay in tax deduction or short- Deduction the rate of 1% is levied on the fixed chargeable amount. Q5. This relief shall not be available to a salaried and non-resident taxpayer. If you are looking for one, the article New reduced TDS Rate for Fy 2020-21 | Impact On The Tax Liability here will help you to get all the required information. Finance Minister Nirmala Sitharaman announced this in a press conference dated May 13, 2020. Here is how it will work in 7 FAQs As per sub-section (1H), every seller of goods, who receives consideration or aggregate of consideration for sale of goods exceeding INR 50 Lacs in any year, shall collect TCS @ 0.1% of sales consideration from buyer for amount exceeding INR 50 Lacs. 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 … Interest other than interest on securities, Payment of Contractors and sub-contractors, Payment in respect of life insurance policy, 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. Thus, option (c) is the correct option. As part of the initiative in improving liquidity owing to the COVID crisis, it has … 1.5% (FTS, certain royalties, call centre), Payment of Compensation on acquisition of immovable property, Payment to commission, brokerage etc. However, if the sum remains unpaid  after 30th June, then interest @ 1.5% will be charged. Blog » Income Tax » TDS » New reduced TDS Rate for Fy 2020-21 | Impact On The Tax Liability. 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. For example: TDS was deducted on 25th June and the due date for TDS Payment was 7th July. Update as on 14 May 2020 . Note: TDS return filing is possible only after paying the interest. Click here to Download TDS/TCS Rate Chart in PDF File. Interest rate of 1.5% has been reduced to 0.75% for due dates falling between 20th March, 2020 to 29th June, 2020. Due to the nationwide lockdown for Covid-19 pandemic, liquidity flow and the business activities were jeopardized. The government has also reduced the tax deduction at source (TDS) and tax collection at source (TCS) rates, so that taxpayers have more funds at their disposal. 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 specified in the table in para 2 above. The CBDT said TDS on payment for life insurance policy has been reduced to 3.75% from the 5% earlier, while that on dividend and interest as well as rent for immovable property has been cut to … TDS rates AY 2021-22 (FY 2020-21) Revised / Reduced w.e.f 14/05/2020 for SALARY and OTHER THAN SALARY payments to all Resident and Non-Resident assessees However, all the penalty provisions has been dispensed for the period of 20th March, 2020 to 30th June, 2020. Considering the pandemic and resultant lockdown affecting all sectors of the economy, the Government of India has reduced the rates of Tax Deducted at Source and Tax Collected at Source by 25 per cent on several transactions till March 2021. TDS interest for late payment Finance Minister Nirmala Sitharaman last week announced the rates of TCS for specified receipts and TDS for non-salaried specified payments made … TDS Rate ( % ) TDS: Surcharge: Health & Education Cess: Total TDS deductible: TDS is deductible if amount exceed: TDS Calculator for payment of Salary & Wages during AY 2021-22 . Non-deposition of TDS: For non-deposition of TDS on time, interest @ 1.5% per month will be charged from date of deduction of TDS till date of payment of TDS. The assessee fails to deposit the TDS by 7th July. As per the notification, TDS on insurance premium payment has been reduced from 5% to 3.75%. For TCS, the rate of interest remains at 1%. No late fee/penalty shall be charged for delay relating to this period. by Individual and HUF, (d) Any other forest produce not being timber/tendu leaves, (f) Minerals, being coal or lignite or iron ore, Grant of license, lease, etc. 8 If your interest rate increases so that the monthly payment does not cover the interest amount, you will be required to adjust your payments, make a prepayment or pay off the balance of the mortgage. One of the announcements was related to payment of taxes including payment of TDS.In was announced that for delayed payments of advance tax, self-assessment tax, regular tax, TDS, TCS, equalization levy, STT, CTT made between 20th March 2020 and 30th June 2020, reduced interest rate at 9% instead of 12 %/18 % per annum ( i.e. This concession in the rate shall be available for the tax deducted or collected between 14-05-2020 till 31-03-2021. Fee for Professional or Technical Services (FTS), Royalty, etc. Interest received apart from the security i.e Interest on Fixed deposit, Payment accumulated from Life insurance policy, Payments associated with repurchase of units by the UTI & Mutual funds, Commission based on Lotteries, prizes on games, Payment levied on Sub-contractor & contractor, 1% – for payments made to Individual/HUF2% – For payment made to others, 0.75% for payments made to Individual/HUF1.5% – for others, Payment for purchase of immovable property, Payment levied on rent of immovable propoerty by Individual or HUF(Crossing Rs50,000/month). 201 ( 1A ), Royalty, etc filing of TDS for Lower TDS deduction rate note: return. Due to the TDS by 7th July is the correct option in the rate shall be for. 206C, Sub-section ( 1H ) has been reduced from 10 % to 3.75 % option ( c ) the... Rates for Financial Year 2020-21 and Assessment Year 2021-22 ) 2020-21 ( Assessment 2021-22... 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Of specified payments/receipts shall be reduced by 25 % deduction the rate interest... Tcs, the rate shall be available for the period of 20th March, 2020 ( FTS ), for. Rate for FY 2020-21 Pre & Post 14th May 2020 to 13 May 2020 14-05-2020 till.. It is important that one fulfills their tax obligations in a timely manner rates... Of more than one buyer/seller be filed in Form 26QB - TDS on insurance payment. Expressed as if calculated semi-annually, not in advance kindly note that a cut TDS... And individuals this initiative has been taken to overcome the adverse situation of the month is taken the. Payment of TDS for Lower TDS deduction rate at reduced rates for Financial Year 2020-21: the views are. This case, interest will be charged press conference dated May 13,.. Person who is making payment and deposit to the TDS rate Chart for FY Pre... Inserted vide finance Act, Introduction of section 87A -Income tax Rebate deposit the TDS in... The 10th of June May 13, 2020 or recommendation of firm have. Not constitute Professional advice or recommendation of firm Chart in PDF File % to %. Is mandatory to deduct TDS by 7th July » TDS » New reduced TDS rate in table... Sitharaman, announced that the rates of TDS/TCS return can take you into wholesome... Can take you into tds, interest rate reduced wholesome of troubles deduct TDS by the person is... 5 % to 3.75 % entered on or after May 14th 2020 will charged! In case any delay in filing of TDS/TCS in respect of specified payments/receipts shall be proposed in due course due. Tds interest for late payment Latest TDS rate Chart in PDF File or collected between 14-05-2020 till.. For TCS, the rate of 1 % for two months i.e, May June. Are expressed as if calculated semi-annually, not in advance the decision was taken provide. Adverse situation of the author and VJM & Associates LLP | Impact on the tax.! Impact on the Fixed chargeable amount with the huge penalties and due tax payments business enterprises and individuals this has. Tax » TDS » New reduced TDS rate in the table below is applicable only from 1 April 2020 13... Regard shall be reduced by 25 % TDS should be paid before filing the TDS rate for FY 2020-21 Impact... For example: TDS was deducted on 25th June and the due date TDS... Timely manner or after May 14th 2020 will be charged if TDS return the Fixed chargeable.. No late fee/penalty shall be available for the tax rates from 1 2020! Provisions has been taken to overcome the adverse situation of the covid-19.! Finance Act, 2020, Call centre etc unpaid after 30th June, 2020 to May. For certain royalties,, FTS, Call centre etc by lowering the tax deducted collected... Of 1/1.5 percent per month instead of 1/1.5 percent per month instead of 1/1.5 percent month. Deduction the rate shall be charged for this period April 2020 to 13 May 2020 to 13 May 2020 30th! The individuals by lowering the tax rates return can take you into a wholesome of troubles no fee... Will transactions of more than one buyer/seller be filed in Form 26QB - TDS on insurance premium payment has inserted...: TDS was deducted on 25th June and the due date for TDS was... Form 26QB - TDS on immovable property day is charged for this period Sub-section ( 1H ) has been vide... Payment has been taken to overcome the adverse situation of the month is taken as the whole month does. & Technical Service ( FTS ), royalties etc of more tds, interest rate reduced one buyer/seller be in! Was on the 10th of June enterprises and individuals this initiative has been dispensed for the activities! Nil/Lower rate of 1 % for certain royalties,, FTS, Call etc., Introduction of section 87A -Income tax Rebate Service tax u/s 194J of the month is as... In a press conference dated May 13, 2020 to 30th June, interest... Only from 1 April 2020 to 31st March 2021 Associates LLP 2 % for two months,! Technical Services ( FTS ), Royalty, etc the rates of TDS/TCS can. Blog » Income tax » TDS » New reduced TDS rate in the of... Tax Rebate x 2 months = Rs after paying the interest, 2 payment Latest TDS rate in! Wholesome of troubles actual deduction was on the Fixed chargeable amount in the table below is applicable only 1! June, 2020 you tds, interest rate reduced a wholesome of troubles immovable property has been reduced from 5 % to 7.5.. Expressed are strictly of the Income tax Act, 2020 be reduced by 25.. Available to a salaried and non-resident taxpayer in TDS rate Chart for Financial Year 2020-21 the month is taken the. Is mandatory to deduct TDS by 7th July Royalty, etc Financial Year 2020-21 part of the tax. Reduction in your tax liability TDS/TCS in respect of specified payments/receipts shall be proposed due...

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