Amended TDS chart for 14-5-2020 to 31-3-2021
Reduction in rate of Tax Deduction at Source (TDS) & Tax Collection at Source (TCS)
The reduction shall be applicable for the remaining F.Y. 2020-2021 i.e. from 14/05/2020 to 31/03/2021.
This measure will release liquidity of Rs. 50,000 crore.
The object is to provide more funds at the disposal of the taxpayers.
Rate of Tax deduction at source (TDS) for non-salaried specified payments made to residents and rate of tax collection at source (TCS) for the specified receipts shall be reduced by 25% of the existing rates.
Latest TDS/TCS Related Amendments
Payment for the contract, professional fees, interest, rent, dividend, commission, brokerage, etc. shall be eligible for this reduced rate of TDS.
1. 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:-
TDS RATE CHART
|S. No||Section of the Income-tax
|Nature of Payment||Existing Rate of TDS||Reduced rate from 14/05/2020 to 31/03/2021|
than interest on
respect for life
an account of re-
Units by Mutual
prize etc., on
sale of lottery
|11||194-I(a)||Rent for plant
|14||194-IB||Payment of rent
by individual or
|2% (FTS, certain
|1.5% (FTS, certain
royalties, call centre)
income by Investment
2. 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
3. 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. 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.
4. 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 a higher rate 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%.
5. Legislative amendments in this regard shall be proposed in due course.
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