tds rate reduction notification

Reduction in rate of Tax Deduction at Source (TDS) & Tax Collection at Source (TCS) 13/05/2020. Nirmala Sitharaman has announced today Reduction in Rates of Tax Deduction at Source (TDS) and ‘Tax Collected at Source (TCS). 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. 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. 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. Notification on TDS and TCS from CBDT; Procedure for filing e-TDS/TCS returns with insufficient deductee PAN (August 11, 2008) The Taxation Act has included the aforesaid amendments in the Income Tax Act, 1961 with retrospective effect from 14th 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%. 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. It appears to be missed-out since this item has not been given any exception from the reduction of rates of TDS. 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. endobj Section 194J provides for dedution of TDS @10% in case: Fees for professional services, or fees for technical services, Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes. 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). 50,000 crore in the System, as per Special Package of Rs 20 lakh crores (COVID-19) announced by Govt. 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 … 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. 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. Section 197B 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 ��,���?�! of India on 13th May 2020. 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. 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. . 2020. This TDS reduction is applicable for the remaining part of the current fiscal year, that is, up to March 31 next year. The Finance Minister also said that it will help to Rs 50,000 crores liquidity through TDS/TCS rate reduction. Also, the TDS has not been reduced on salary income, cash Lower deduction in certain cases for a limited period. In the notification, the CBDT said TDS on 23 items has been reduced. 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. minister announced reduction in the rate of TDS and TCS by 25 per cent. 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. 3. 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. stream The reduction in TDS will benefit depositors. 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 section you will TDS updates, such as press release, notification and many more updates. So far these services were charged with a TDS at 10 percent to a resident over Rs 30,000 during a financial year. May 19, 2020 May 28, 2020. endobj There is no reduction in the rate of TDS under section 194N regarding TDS on Cash WIthdrawal as introduced by the Finance (No. gtag('config', 'UA-154374887-1'); She said this change in TDS rates will be applicable from May 14, that is, tomorrow. 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. Tcs were also reduced to 75 % of the FY 2020-21 from 14.05.2020 31.03.2021. 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Although the applicable period for lower rates has started, a formal Notification issued. Tds is reduced to 75 % of the prescribed rates of TDS under section regarding... 15Th Amendment ) Rules, 2020 that will make changes in the form lower!

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