- 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.
- Payment for contract, professional fees, interest, rent, dividend, commission, brokerage, etc. shall be eligible for
this reduced rate of TDS.
- This reduction shall be applicable for the remaining part of the FY 2020-21 i.e. from tomorrow to 31st March, 2021.
- This measure will release Liquidity of Rs. 50,000 crore.
- Thus, New Rate of TDS for the period 14.05.2020 to 31.03.2021 as under:
|TDS Section||TDS deducted on||Old Rate||New Rate w.e.f. 14.05.2020 to 31.03.2021|
|194H||Commission or Brokerage||5%||3.75%|