New TDS ,TCS Rate

New TDS ,TCS Rate

 Due to Panic time   for industries Government of India announce various relief to industries.
Central Government announce reduction in TDS and TCS rate by 25% to increase cash flow in market.
The new TDS and TCS rates came into effect from May 14, 2020 and remain effective till March 31, 2021, i.e., till the end of the financial year 2020-21, Finance Minister Nirmala Sitharaman stated in her press briefing. From May 14, 2020 till March 31, 2021, for any non-salaried income which is subject to TDS, tax will now be deducted at the new lower rates for FY 2020-21.

 New TDS Rate effective from 14/05/2020 for financial year 2020-21

Nature of payment
Section of Income Tax Act, 1961
Existing TDS Rate
New TDS rate Effective from 14/05/2020
Interest received on Securities
193
10%
7.5%
Dividend received from mutual   fund and  on company shares
194K
10%
7.5%
Receiving accumulated part  of Provided Fund
192A
10%
10%
Interest other than interest on securities e . g Fixed Deposit
194A
10%
7.5%
 Winning from lottery , crosswords  or any sort of game
194B
30%
30%
Winning from horse race
194BB
30%
30%
Insurance commission received by  an   individual
194 D
5%
3.75%
Life Insurance Policies not exempt under section 10( 10D)
194DA
5%
3.75%
 Brokerage  or commission received except insurance commission
194H
5%
3.75%
Payment made while purchasing land or property
194IA
1%
0.75%
Payment of rent by individual or HUF exceeding Rs.50,000 per month
194IB
5%
3.75%
Payment made to professional or commission or brokerage of more than Rs. 50 lakh and above
194M
5%
3.75%
Cash withdrawal exceeding Rs.20 or 1 crore as  the  may be
194N
2%
2%
Payment made to professional fee
194J
2% Certain person
10% others
1.5% certain person
7.5% others
Payment in respect of deposit under National saving scheme
194EE
10%
7.5%
Rent for plant  & machinery
194I a
2%
1.5%
Rent for Immovable property
194I b
10%
7.5%

New TCS rate effective from 14/05/2020 for financial year 2020-21

Nature of Receipts
Section of Income Tax Act ,1961
Existing TCS rate
New  TCS rate
Sale of Tendu leave
206C (1)
5.%
3.75%
Sale of timber obtained under a forest lease
206 C ( 1)
2.5%
1.88%
 Sale of timber obtained by any other mode
206C (1)
2.5%
1.88%
 Sale of  any other forest produce  not being timber/ tendu leaves
 206C ( 1)
2.5%
1.88%
 Sale of scrap
 206C (1)
1%
0.75%
 Sale of  Mineral being coal or lignite or iron ore
206 C (1)
1%
0.75%
Grant of license, lease, etc. of Parking Lot
206C (1)
2%
1.5%
Grant of license, lease, etc. of Toll Plazza
206C (1)
2%
1.5%
Grant of license, lease of  Mining, quarrying
206C (1)
2%
1.5%
Sale of motor vehicle above 10 lakhs
206C ( 1F)
1.0%
0.75%
Sale of any other goods
 206C (1H)
0.1%
0.075%
Conclusion:  According to Central Government Ministry of Finance announced great relief to industries   in panic covid-19 where industry face financial crisis due to non-production of various product and fixed cost like office and factory rent, employee salary and other fixed cost. So reduction in TDS rate by 25 %( lower deduction) from existing rate.

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