It will be beneficial for both the deductor and the deductee in order to restore the cash flow and stabilize the economic condition in India. If the above conditions are fulfilled then a person would be liable for the reduced rate of interest at 0.75% p.m or part thereof. 5000 x 1% p.m. x 2 months = Rs. Reduction in rate of Tax Deduction at Source (TDS) & Tax Collection at Source (TCS) In order to provide more funds at the disposal of the taxpayers for dealing with the economic situation arising out of COVID-19 pandemic, the rates of Tax Deduction at Source (TDS) for the following non-salaried specified payments made to residents has been reduced by 25% for the period from 14 th … TDS, TCS reduced by 25%. Latest TDS Rates FY 2020-21 (Assessment Year 2021-22). 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. Additionally, there was a 1% TDS charge applicable on payment for the acquisition of immovable property which is now reduced to 0.75%. by Individuals or HUF, Cash withdrawal over Rs 20Lakh or more than 1crore, Any other Forest products not being Timber/Tendu Leaves, Mineral being Coal coal or lignite or Iron Ore, Grant on the leases, license etc- Parking space. TDS rate: Salary As per applicable income tax slab ... date it is finally deducted (1%) or paid (1.5%) to the government in the case of tax deducted at source. As per the press release, the TCS rates will be reduced by 25% on the items such as sales of scrap materials, timbers, tendu leaves, forest products and on mineral resources-  coal, ignite etc. However, all the penalty provisions has been dispensed for the period of 20th March, 2020 to 30th June, 2020. Non-deposition of TDS: For non-deposition of TDS on time, interest @ 1.5% per month will be charged from date of deduction of TDS till date of payment of TDS. Considering the pandemic and resultant lockdown affecting all sectors of the economy, the Government of India has reduced the rates of Tax Deducted at Source and Tax Collected at Source by 25 per cent on several transactions till March 2021. TDS Rate Chart for FY 2020-21 Pre & Post 14th May 2020, 2. Further, the rate of Tax Collection at Source (TCS) for the following specified receipts has also been reduced by 25% for the period from 14th May, 2020  to 31st March, 2021:-, TCS Rate Chart for FY 2020-21 Pre & Post 14th May 2020. Register / Track PAN Card Related Complain / Status, Fees and Penalty for Late Filing of TDS Returns, Steps for filing Rectification request on receipt of demand notice due to mis-match of Income Tax, TDS/TCS Rates Chart for A.Y. (iii) Payment of such Tax or Levy should be paid on or before 30 th June, 2020 (or such other date as the Central Govt may notify). The TCS and TDS Rate for Fy 2020-21 is reduced by 25% for the non-salaried defined payments  made to residents for the period of 14th May, 2020 to March 31st, 2021. This would be for all payments from 14th May 2020 to 31st March 2021. However, if the sum remains unpaid  after 30th June, then interest @ 1.5% will be charged. Transactions entered on or after May 14th 2020 will be subjected to the TDS & TCS at reduced rates for financial year 2020-21. Interest @ 1.5% is liable to be paid from the date on which the TDS amount was deducted and not from the date the TDS payment was due. On detailed analysis, I come to know that CBDT has reduced the TDS/TCS rate in most of cases but not in all cases as explained in my compilation. Conclusion. In this case, interest will be applicable at a rate of 1% for two months i.e, May and June. 26 May 2020 For delayed payments of advanced tax, self-assessment tax, regular tax, TDS, TCS, equalization levy, STT, CTT made between 20th March 2020 and 30th June 2020, the reduced interest rate at 9% instead of 12 %/18 % per annum ( i.e. No late fee/penalty shall be charged for delay relating to this period. 4. Due to Covid-19, CBDT has reduced the TDS/TCS rate by 25% through press release dated 13/05/2020.However, No official notification is being released by CBDT till now for reduction of TDS/TSC rate. 2014-15 or F.Y. DISCLAIMER: The views expressed are strictly of the author and VJM & Associates LLP. Click here to Download TDS/TCS Rate Chart in PDF File. Due to the nationwide lockdown for Covid-19 pandemic, liquidity flow and the business activities were jeopardized. The contents of this article are solely for informational purpose. 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