TDS, TCS rates reduced by 25%
Reduction in Rates of ‘Tax Deduction at Source’ and ‘Tax Collected at Source‘
In the press conference held 13/05/2020, Union Minister of Finance & Corporate Affairs Smt. Nirmala Sitharaman
Reduction in Rates of ‘Tax Deduction at Source’ and ‘Tax Collected at Source” – The TDS rates for all non-salaried payment to residents, and tax collected at source rate will be reduced by 25 percent of the specified rates for the remaining period of FY 20-21.This will provided liquidity to the tune of Rs 50,000 Crore.
Rs 50,000 crores liquidity through TDS/TCS rate reduction
• 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.