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. 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. Chart of reduced TDS / TCS rates for FY 2020-21 from 14.05.2020 to 31.03.2021. 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. 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 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:- 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). Section 194J provides for dedution of TDS @10% in case: Fees for professional services, or fees for technical services, 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. // See https://www.blogger.com/go/adspersonalization gtag('config', 'UA-154374887-1'); 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. from 14.05.2020 to … 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. Reduction in rates for TDS and TCS will result in release of liquidity of Rs 50,000 crores, as per government’s estimates. New Delhi, May 13: Finance Minister Nirmala Sitharaman announced on Wednesday said that the rates of Tax Deduction at Source (TDS) for non … 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 governemnt has cut TDS (tax deduction at source) rates by 25 per cent for non-salaried section. from tomorrow to 31st March, 2021. (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. 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. Taxation and Other Laws (Relaxation and Amendment of Certain. from tomorrow to 31st March, 2021. There is no reduction in the rate of TDS under section 194N regarding TDS on Cash WIthdrawal as introduced by the, 2. �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� 1. This TDS reduction is applicable for the remaining part of the current fiscal year, that is, up to March 31 next year. 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. New Delhi, 13th May. 8,400. 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. Lower deduction in certain cases for a limited period. Updated: 14 May 2020, 01:10 AM IST Tinesh Bhasin. 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 . 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. Non-salaried payments for contract, professional fees, interest, rent, dividend, commission, brokerage, etc. This reduction shall be applicable for the remaining part of the financial year 2020 … %PDF-1.5
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Nirmala Sitharaman has announced today Reduction in Rates of Tax Deduction at Source (TDS) and ‘Tax Collected at Source (TCS). 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. shall be eligible for this reduced rate of TDS. minister announced reduction in the rate of TDS and TCS by 25 per cent. This reduction shall be applicable for the remaining part of the 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 … Lets discuss this proposal in brief via this article. Lets discuss this proposal in brief via this article. adsbygoogle.requestNonPersonalizedAds = 1; Notification on TDS and TCS from CBDT; Procedure for filing e-TDS/TCS returns with insufficient deductee PAN (August 11, 2008) 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. 3. . of India on 13th May 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. The reduction in TDS will benefit depositors. 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