This reduction shall be applicable for the remaining part of the financial year 2020 … 3. 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 … This is indeed a good news the Reduction of TDS on technical services to 2% has been proposed by Budget 2020. Section 194J : Reduction of TDS on Technical Services to 2%. New Delhi, May 13: Finance Minister Nirmala Sitharaman announced on Wednesday said that the rates of Tax Deduction at Source (TDS) for non … She said this change in TDS rates will be applicable from May 14, that is, tomorrow. 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. 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 governemnt has cut TDS (tax deduction at source) rates by 25 per cent for non-salaried section. Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes. endobj May 19, 2020 May 28, 2020. Updated: 14 May 2020, 01:10 AM IST Tinesh Bhasin. 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 . 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 … 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. 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. 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. Here we have provided complete notifications related to the Income Tax and TDS provisions as per the official government laws. 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. 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. However, the relief in the form of lower TDS has not been extended to salaried individuals. TDS Notification. New Delhi, 13th May. 2020. 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. Getty Images. New TDS/TCS Rate Chart For Fy 2020-2021 | W.e.f 14th may 2020 to 31st march 2021. from tomorrow to 31st March, 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. 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. Additionally, there was a 1% TDS charge applicable on payment for the acquisition of immovable property which is now reduced to 0.75%. The TDS rate on income depends on the salary of an individual and based on that it ranges between 10% to 30%. 50,000 crore in the System, as per Special Package of Rs 20 lakh crores (COVID-19) announced by Govt. As per the notification, TDS on insurance premium payment has been reduced from 5% to 3.75%. 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%. of India, vide Gazette Notification (Extraordinary) No. 2. The government has lowered the TDS and TCS rates by 25% on non-salaried payments effective from May 14, 2020, till March 31, 2021. 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. ̒'X��P�Q*��u�1�=�Wo~�dg�v�_���R��X>�R��.��#�M���V�x]�~����}#*3��1�aAh)ˎ!k��2`��Kق1d;�BM]��u��k~�� 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. Section 197B for lower deduction of tax (TDS) reads as under-. It appears to be missed-out since this item has not been given any exception from the reduction of rates of TDS. So far these services were charged with a TDS at 10 percent to a resident over Rs 30,000 during a financial year. As per the government document, this reduced rate of TDS will be available for payment for contract, professional fees, interest, rent, dividend, commission and brokerage income. 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. 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 … // See https://www.blogger.com/go/adspersonalization 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%. 197B. 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 … minister announced reduction in the rate of TDS and TCS by 25 per cent. Mr. Verma files TDS return for the second quarter of 2019 – 2020 on April 4, 2020. There is no reduction in the rate of TCS under section 206C(1G) regarding, 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. 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. There is no reduction in the rate of TDS under section 194N regarding TDS on Cash WIthdrawal as introduced by the, 2. 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. . shall be eligible for this reduced rate of TDS. 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. Reduction in rates for TDS and TCS will result in release of liquidity of Rs 50,000 crores, as per government’s estimates. 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. 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.

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