As we know a relief was announced by our Hon’ble FM on 13.05.2020 wherein various direct tax relief was also announced one of which was reduction in TDS rate by 25%. This reduction would apply to all TDS rate other than TDS on salary.
Noteworthy – no reduction in 2% TDS rate u/s 194N for Cash withdrawal greater 1cr and if withdrawer has not filed return in last 3yrs, than 2% TDS for cash withdrawal greater than 20 lakhs and 5% TDS for greater than 1cr. Now, below is the chart showing new TDS rates:
TCS rates are as below:
There has been a small typographical error in the table pertaining to reduction in TDS/TCS rates in the Press Release issued on 13/05/2020. The new rate of TCS in column no. 4 w.r.t. sale of any other goods u/s 206C (1H), should be read as 0.075% instead of 0.75%.
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. 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%.
To read full Press release CLICK HERE.
To read TDS/ TCS related press release CLICK HERE.
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