→ 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 rate of TDS and TCS is reduced by 25% which will be effective for the period of 14th May, 2020 to 31st March, 2021. Accordingly reduced TDS and TCS Rates are as follows:
TDS
| Sr. No. | Section | Nature of Transaction | Old Rate
(01-04-2020 to 13-05-2020) |
Revised/Reduced Rate (14-05-2020 to 31-03-2021) |
| 1 | 193 | Interest on Securities | 10% | 7.5% |
| 2 | 194 | Dividend | 10% | 7.5% |
| 3 | 194A | Interest other than interest on securities | 10% | 7.5% |
| 4 | 194C | Payment to Contractors and sub-contractors | 1% (for individual/HUF) 2% (for other assesse) |
0.75% (for individual/HUF) 1.50% (for other assesse) |
| 5 | 194D | Insurance Commission | 5% | 3.75% |
| 6 | 194DA | Payment in respect of Life Insurance Policy | 5% | 3.75% |
| 7 | 194EE | Payments in respect of deposits under National Savings Scheme | 10% | 7.5% |
| 8 | 194F | Payments on account of re-purchase of Units by Mutual Funds or UTI | 20% | 15% |
| 9 | 194G | Commission, prize etc. on sale of lottery tickets | 5% | 3.75% |
| 10 | 194H | Commission or Brokerage | 5% | 3.75% |
| 11 | 194-I(a) | Rent on plant and machinery | 2% | 1.5% |
| 12 | 194-I(b) | Rent on immovable property | 10% | 7.5% |
| 13 | 194-IA | Payment for acquisition of immovable property | 1% | 0.75% |
| 14 | 194-IB | Payment of rent by individual or HUF | 5% | 3.75% |
| 15 | 194-IC | Payment for Joint Development Agreements | 10% | 7.5% |
| 16 | 194J | Professional fees or Fees for Technical Services (FTS), Royalty, etc. | 2% (for FTS, certain royalties, call center) 10% (for other) |
1.5% (for FTS, certain royalties, call center) 7.5% (for other) |
| 17 | 194K | Payment of Dividend by Mutual Funds | 10% | 7.5% |
| 18 | 194LA | Payment of Compensation on acquisition of immovable property | 10% | 7.5% |
| 19 | 194LBA(1) | Payment of income by Business Trust | 10% | 7.5% |
| 20 | 194LBB(i) | Payment of income by Investment Fund | 10% | 7.5% |
| 21 | 194LBC(1) | Income by Securitisation Trust | 25% (in the case of Individual/HUF) 30% (in other cases) |
18.75% (in the case of Individual/HUF) 22.50% (in other cases) |
| 22 | 194M | Payment to resident contractors and professionals etc. by Individual and HUF | 5% | 3.75% |
| 23 | 194O | TDS on e-commerce participants | 1% (with effect from 1st October, 2020) | 0.75% |
TCS
| Sr. No. | Section | Nature of Transaction | Old Rate (01-04-2020 to 13-05-2020) | Revised/Reduced Rate (14-05-2020 to 31-03-2021) |
| 1 | 206C(1)(a) | Sale of Tendu Leaves | 5% | 3.75% |
| 2 | 206C(1)(b) | Sale of timber obtained under a forest lease | 2.50% | 1.875% |
| 3 | 206C(1)(c) | Sale of timber obtained by any other Mode | 2.50% | 1.875% |
| 4 | 206C(1)(d) | Sale of any other forest produce not being timber/tendu leaves | 2.50% | 1.875% |
| 5 | 206C(1)(e) | Sale of scrap | 1% | 0.75% |
| 6 | 206C(1)(f) | Sale of Minerals, being coal or lignite or iron ore | 1% | 0.75% |
| 7 | 206C(1C)(a) | Grant of license, lease, etc. of Parking lot | 2% | 1.5% |
| 8 | 206C(1C)(b) | Grant of license, lease, etc. of Toll Plaza | 2% | 1.5% |
| 9 | 206C(1C)(c) | Grant of license, lease, etc. of Mining and quarrying | 2% | 1.5% |
| 10 | 206C(1F) | Sale of motor vehicle above 10 Lakhs | 1% | 0.75% |
| 11 | 206C(1H) | Sale of any other goods | 0.1% (with effect from 1st October, 2020) | 0.075% |
→ However, benefit of reduced TDS/TCS rate will not be available in case TDS/TCS is required to be deducted or collected at a higher rate due to non-furnishing of PAN/AADHAR.
→ The entire provisions were made effective through Press Release i.e. no official notification were issued by CBDT.
→ To get official press release please click here-Press Release
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