Rs 50,000 crores liquidity through TDS/TCS rate reduction


0
  1. 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.
  2. Payment for contract, professional fees, interest, rent, dividend, commission, brokerage, etc. shall be eligible for
    this reduced rate of TDS.
  3. This reduction shall be applicable for the remaining part of the FY 2020-21 i.e. from tomorrow to 31st March, 2021.
  4. This measure will release Liquidity of Rs. 50,000 crore.
  5. Thus, New Rate of TDS  for the period 14.05.2020 to 31.03.2021 as under:

TDS Section TDS deducted on Old RateNew Rate w.e.f. 14.05.2020 to 31.03.2021
194AInterest10%7.5%
194C-CompanyContract2%1.5%
194C-Non-CompanyContract1%0.75%
194HCommission or Brokerage5%3.75%
194IRent10%7.5%
194JProfessional Fees10%7.5%


Like it? Share with your friends!

0

0 Comments

Your email address will not be published. Required fields are marked *