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 person10% others |
1.5% certain person7.5% 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% |