18 December 2020 IT Department to add new resources to check TDS rates for high-value cash withdrawals Also, the relaxation in tax rates effective from 14. Track Latest News Live on NDTV.com. Note: TDS does not apply to such interest income if it does not exceed Rs.40,000, and Rs.50,000 for general and senior citizens respectively, in a given Financial Year. Rate of deduction. If the individual does not furnish PAN, TDS will be deducted at the rate of 20%. Interest subject to TDS/TCS amount. By means of it, the government collects tax from a person’s income at the time it is generated. Mutual fund investments are subject to market risks. Income received from a trust under a business, Earnings from interest through infrastructure debt fund, A Foreign Institutional Investor or Qualified Foreign Investor’s income from investment in rupee-denominated bonds, applicable to different persons recognised in India. 10,000 u/s 80TTA. The actual deduction was on the 10th of June. It’s worth noting that taxpayers need to pay a higher TDS amount if they do not furnish PAN or Aadhaar. list applicable for any company apart from domestic organisations is noted in the table below. "Take Me Back": A Carton Recycling Program In Chennai. The. Q5. 1st … The Government has not stated any separate process for TCS. Income from repurchasing of units by Mutual Fund or UTI, Earnings from National Savings Scheme deposits, Yields from units transferred to an offshore fund, including long-term capital gains, Yields from an Indian organisation’s foreign-currency funds, Long-term capital gains as per Section 115E, Short-term capital gains as per Section 111A, Long-term Capital Gains as per  Section 193 sub-section 1 clause c sub-clause iii, Long-term Capital Gains not mentioned in Section 10 clauses 33, 36, and 38, Interest income from foreign-currency debt instruments issued by the Indian Government or an Indian Concern (other than income as per Section 194LC or 194LB), Income from MF units as per Section 10 clause 23D from a company mentioned in Section 10 clause 35, Earnings from securities by Foreign Institutional Investors, apart from dividend income or capital gains, Interest earnings from infrastructure debt funds, Interest income from a loan or long-term bonds in the foreign currency issued by a business trust or an Indian organisation, Income by non-resident sports organisation or individual, Interest earnings by a Qualified Foreign Investor or Foreign Institutional Investor from rupee-denominated government securities or corporate bonds by an Indian organisation. during 14th May 2020 to 31st March 2021), as a measure to inject liquidity of Rs. Here's A List, Joe Biden Signs Series Of Orders, Set To Rejoin Paris Climate Accord, Budget 2021: Key Facts About India's Past Union Budgets, Budget 2021: What Is Economic Survey? The Union government lowered the tax deducted at source (TDS) and tax collected at source (TCS) rates by 25 per cent on non-salaried payments effective from May 14, 2020, until March 31, 2021. TDS is to be deducted at the rate of 10%. During this time period, the rates of the effective TCS and TDS will be effective at 75% of the actual prescribed rates. Other Tax Updates: Due date of all income tax returns for F.Y. Invest in the top-performing ELSS mutual funds to save up to Rs. ": French President To Joe Biden, This website follows the DNPA Code of Ethics. TDS on FD interest paid by a bank will now be deducted at 7.5 per cent instead of 10 per cent earlier. ... TDS on RD is applicable as per Finance Act 2015. Please consider your specific investment requirements, risk tolerance, investment goal, time frame, risk and reward balance and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. 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. Please read the scheme information and other related documents carefully before investing. Delayed payment of self-assessment tax made between 20 March 2020 to 30 June 2020 would attract reduced interest rate of 9% per annum (p.a.) Let’s have a look at the current interest rates of small savings schemes. The total interest amount payable will be Rs. Note: TDS return filing is possible only after paying the interest. Interest rate on NSC for the financial year has been cut by 110 bps . When TDS is not deducted – 1% per month or part thereof, for the period from the date on which TDS is deductible/collectible to the date on which TDS/TCS is actually deducted/collected. The decision was taken to provide more liquidity to the individuals by lowering the tax rates. If the recipient of income doesn’t furnish his PAN to deductor then TDS is to be deducted @ 20%. The reduced rates will be applicable for the remaining part of FY 2020-21, i.e., from 14 th May, 2020 to 31 st March, 2021. Also, the relaxation in tax rates effective from 14th May 2020 to 31st March 2021 does not apply to such taxpayers. Applicable TDS rates from 14th May 2020 – 31st March 2021: TDS rates till 13th May 2020: Interest on securities: Section 193: 7.5%: 10%: Yields against an insurance policy Section 194DA: 3.75%: 5%: Brokerage commission Section 194H: 3.75%: 5%: Dividends earned: Section 194: 7.5%: 10%: Income received from a business trust: Section 194LBA: 7.5%: 10% Therefore, they are similar to TDS provisions during COVID-19. 50,000 crore. Yields from lotteries, card games, crossword puzzles, etc. To increase liquidity in the hands of people and help them fight the coronavirus-induced recession, the government announced various relief measures on May 13, 2020. Earnings from National Savings Scheme Deposits, Income from repurchasing of MF units or UTI units, Earnings by means of insurance commission. TDS interest for late payment Here's All You Need To Know, China Sanctions 28 Trump Officials, Pompeo For Violating "Sovereignty", US Senate Control Shifts To Democrats As Georgia Pair Sworn In, Joe Biden Safely Arrives At White House, Protected By 25,000 Troops, Oxford Prepares Vaccine To Combat Emerging Virus Variants: Report, "Welcome Back To The Paris Agreement! 50,000 crore in the System, as per Special Package of Rs 20 lakh crores (COVID-19) announced by Govt. 0.75% per month instead of 1/1.5 percent per month) will be charged for this period. Similarly, a tenant will be required to deduct the TDS on rent exceeding Rs 50,000 per month at 3.75 per cent instead of 5 per cent earlier. TDS kicks in at different levels for various payments. It’s worth noting that taxpayers need to pay a higher TDS amount if they do not furnish PAN or Aadhaar. Organisations other than domestic companies, Yields from repurchasing of any unit by Unit Trust of India or Mutual Fund, Issued by a local government authority or corporation, Central or State Government issued debenture, Income from deposits made under the National Savings Scheme, Amount received against a life insurance policy, Commission earned by selling lottery tickets, Dividend income except earnings mentioned in Section 115-O. Stock Market Interest. ⓒ 2016-2020 Groww. Quarter. The TDS rates thus levied also vary across income varieties and the person taxed. The government has lowered the TDS and TCS rates by 25% on non-salaried payments effective from May 14, 2020, till March 31, 2021. Past performance is not indicative of future returns. Now with the 2021-22 budget scheduled to be presented by Ms Sitharaman on February 1, taxpayers are hoping for additional relief measures to help survive the Covid-19-induced recession hit economy. The reduced TDS and TCS rate will be for specific payments such as payment for a contract, professional fees, interest, rent etc. TDSMAN August 4, 2020 August 4, 2020 2 Comments on Interest on Late Payment of TDS In case the assessee deposits the TDS Payment after the due date of payment of the tax deducted at source, he shall be liable to pay interest @1.5% for every month or every part of the month during which the amount is not deposited with the government. The government undertook the decision to provide additional liquidity to people by lowering tax rates. The Indian Finance Ministry implemented new TDS rates for resident individuals, which is applicable from 14th May 2020 – 31st March 2021, to provide financial respite in light of the recent economic crisis. 46,800 in taxes and build wealth for your future. The relief measures were announced by finance minister Nirmala Sitharaman. instead of … March 2021, to provide financial respite in light of the recent economic crisis. Interest will be levied at 1% for every month or part of a month for delay in deduction of tax and at 1.5% for every month or part of a month for delay in remittance of tax after deduction. The primary objective of TDS is to reduce incidences of tax evasion by ensuring it’s deducted at source of income generation rather than at a future date. Income in the form of insurance commission, Earning from the sale of any immovable property apart from agricultural land. Prior to this the base rate is the rate applicable to deposits of less than Rs.1 Cr as on the date of booking the deposit. TCS payments for the month of Mar-2020 needs to be made within 30th April, 2020. In India, TDS applies to four types of persons –. But NRIs have to pay 30% TDS on interest received on NRO accounts. 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, reduced interest rate at 9% instead of 12 %/18 % per annum (i.e. Professional services, not sharing patent, know-how, copyright, etc. Latest TDS Rates FY 2020-21 (Assessment Year 2021-22). Follow our special coverage of Coronavirus pandemic in India and get news updates from around the world. The following table displays the TDS rate chart for Resident Individuals. Note 1: Consider tax treaties before determining the rate of withholding tax under Section 195. Timings, Companies Other than Domestic Organisations. Late payment will attract reduced interest @ 0.75% per month or part of the month .Further, due date for filing of TCS returns in Form 27EQ for Q4-2020 has been extended to 30th June, 2020 from 15thMay, 2020. Do not furnish PAN, TDS will be applicable at a rate of 20 % COVID-19 ) by... 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