{"id":12699,"date":"2020-05-24T13:46:44","date_gmt":"2020-05-24T13:46:44","guid":{"rendered":"https:\/\/www.cagmc.com\/?p=12699"},"modified":"2024-06-04T10:50:56","modified_gmt":"2024-06-04T05:20:56","slug":"tds-tcs-reduction-a-sigh-of-relief","status":"publish","type":"post","link":"https:\/\/www.cagmc.com\/blog\/tds-tcs-reduction-a-sigh-of-relief\/","title":{"rendered":"TDS\/TCS Reduction: A Sigh of Relief"},"content":{"rendered":"

Times have been challenging since the starting of this year as enterprises all across the country are facing liquidity crunches. Amidst this corona war like situation government brought forward one of the biggest relief package of Rs 20 lakh crore as a solution for all fiscal injuries. Under this FM Nirmala Sitaraman announced 25% temporary reduction in TDS\/TCS rates for non salaried taxpayers<\/a>. The decision will be effected from 14th<\/sup> May, 2020 till 31st<\/sup> March, 2020 in the current financial year.<\/p>\n

\"TDS\/TCS<\/p>\n

New rates of TDS w.e.f 14th<\/sup> May 2020 to 31st<\/sup> March 2021<\/h3>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Section<\/strong><\/td>\nNature of income<\/strong><\/td>\n\n

Rates of TDS<\/strong><\/p>\n<\/td>\n<\/tr>\n

Before reduction (in %)<\/strong><\/td>\nAfter reduction (in %)<\/strong><\/td>\n<\/tr>\n
193<\/strong><\/td>\nInterest on securities<\/td>\n10%<\/td>\n7.5%<\/td>\n<\/tr>\n
194<\/strong><\/td>\nDividend<\/td>\n10%<\/td>\n7.5%<\/td>\n<\/tr>\n
194A<\/strong><\/td>\nInterest other than on securities<\/td>\n10%<\/td>\n7.5%<\/td>\n<\/tr>\n
194C<\/strong><\/td>\nPayment to contractors<\/td>\nIndividual or HUF deductee \u2013 1%<\/p>\n

Any other case \u2013 2<\/td>\n

Individual or HUF deductee \u20130 .75%<\/p>\n

Any other case \u2013 1.50 %<\/td>\n<\/tr>\n

194D<\/strong><\/td>\nInsurance commission<\/td>\n10%- domestic company<\/p>\n

5 %\u2013 any other case<\/td>\n

7.5% \u2013 domestic company<\/p>\n

3.75% \u2013 any other case<\/td>\n<\/tr>\n

194G<\/strong><\/td>\nCommission and other payments on sale of lottery tickets<\/td>\n5%<\/td>\n3.75<\/p>\n

%<\/td>\n<\/tr>\n

194H<\/strong><\/td>\nCommission and brokerage<\/td>\n5%<\/td>\n3.75%<\/td>\n<\/tr>\n
194-I<\/strong><\/td>\nRent<\/td>\n2%- on plant and equipments<\/p>\n

10%- on immovable property and furniture and fittings<\/td>\n

1.50 %- on plant and equipments<\/p>\n

7.50% – on immovable property and furniture and fittings<\/td>\n<\/tr>\n

194-IB<\/strong><\/td>\nPayment of rent by individual or HUF<\/td>\n5%<\/td>\n3.75%<\/td>\n<\/tr>\n
194-J<\/strong><\/td>\nRoyalty and fees for professional or technical services<\/td>\n2%- If royalty is payable for sale , distribution or exhibition of cinematographic films.<\/p>\n

\u00aeInvolved solely in the business of operation of call centre<\/p>\n

\u00aeFees for technical services<\/p>\n

10 %- Any other cases<\/td>\n

1.50% : If royalty is payable for sale , distribution or exhibition of cinematographic films<\/p>\n

\u00aeInvolved solely in the business of operation of call centre<\/p>\n

\u00aeFees for technical services<\/p>\n

7.50 %- Any other cases<\/td>\n<\/tr>\n

194M<\/strong><\/td>\nPayment to contractor, commission agent , broker or professional by individual or HUF<\/td>\n5%<\/td>\n3.75%<\/td>\n<\/tr>\n
194N<\/strong><\/td>\nCash withdrawal<\/td>\n2% \u00aeif cash withdrawal exceeds Rs 1 crore<\/p>\n

\u00aeIf assessee has not furnished return for last \u00a0assessment years and cash withdrawal exceeds Rs1 crore<\/p>\n

5%- If return not furnished for last 3 assessment years and cash withdrawal exceeds Rs 1 crore.<\/td>\n

1.50% \u00aeif cash withdrawal exceeds Rs 1 crore<\/p>\n

\u00aeIf assessee has not furnished return for last 3 assessment years and cash withdrawal exceeds Rs1 crore<\/p>\n

3.75%- if return not furnished for last 3 assessment years and cash withdrawal exceeds Rs 1 crore.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

New rates of TCS<\/h3>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Section<\/strong><\/td>\nNature of income<\/strong><\/td>\nRates of TCS<\/strong><\/td>\n<\/tr>\n
Before reduction (in %)<\/strong><\/td>\nAfter reduction (in %)<\/strong><\/td>\n<\/tr>\n
206C(1)<\/strong><\/td>\nAlcoholic liquor for human consumption<\/td>\n1%<\/td>\n.75%<\/td>\n<\/tr>\n
Timber obtained under forest lease<\/p>\n

Timber obtained by any other mode.<\/p>\n

Any other forest produce other than timber and tendu leaves<\/td>\n

2.5%<\/td>\n1.875%<\/td>\n<\/tr>\n
Tendu leaves<\/td>\n5%<\/td>\n3.75%<\/td>\n<\/tr>\n
Minerals, being coal or ignite or iron ore<\/td>\n1%<\/td>\n0.75%<\/td>\n<\/tr>\n
Scrap<\/td>\n1%<\/td>\n.75%<\/td>\n<\/tr>\n
206C(1C)<\/strong><\/td>\nParking lot<\/td>\n2%<\/td>\n1.50%<\/td>\n<\/tr>\n
Toll plaza<\/td>\n2%<\/td>\n1.5%<\/td>\n<\/tr>\n
Mining and quarrying<\/td>\n2%<\/td>\n1.5%<\/td>\n<\/tr>\n
206C(1F)<\/strong><\/td>\nMotor car<\/td>\n1%<\/td>\n0.75%<\/td>\n<\/tr>\n
206C(1G)<\/strong><\/td>\nOverseas tour travel package<\/td>\n5%<\/td>\n3.75%<\/td>\n<\/tr>\n
Remittance of forex under LRS of Rs 7 lakh or more in a financial year<\/td>\n0.5%- in case remittance is a repayment of loan obtained for the purpose of pursuing any education<\/p>\n

5 %\u2013 any other case<\/td>\n

0.375%- in case remittance is a repayment of loan obtained for the purpose of pursuing any education<\/p>\n

3.75% \u2013 any other case<\/td>\n<\/tr>\n

206C(1H)<\/strong><\/td>\nSale of goods in excess of Rs 50 lakh<\/td>\n0.10%<\/td>\n0.75%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Key points<\/strong><\/h3>\n