Hello good people. Welcome to the new post on the Signitax about CBDT Reduced 25% TDS Rates and TCS Rates on 23 Items so if you are eager to know about the New TDS rates and TCS rates on fixed deposits, dividends and other non-salaried payments then read this full post up till end to understand the full concept.
CBDT Reduction on TDS Rates and TCS Rates
CBDT recently published telling and stated TDS rates on 23 things happen to be decreased, in addition, it published the revised TDS and TCS rates that will be related from yesterday during the recent FY i.e. until 31st March 2021.
It occurs by following the recent statement made by finance ministry Nirmala Sitharaman, in reaction to this, the IT department has decreased prices by 25 percent of tax deducted at source on lease, insurance coverage, payment of dividend, professional commission, acquisition of immovable property, etc.. This is applicable during the continuing financial year i.e. 2020-2021.
From the Notification CBDT said that TCS available of motor vehicles using a cost more than $10 lakh was cut from 1% to 0.75 percent, combined with this, TDS rates are reduced on 23 additional products.
TDS on Dividend and interest and lease for immovable property was reduced from 10 percent to 7.5 percent. Furthermore, there was a 1 percent TDS charge related on payment to the purchase of immovable property that’s currently reduced to 0.75 percent. Payment of lease from individual or HUF was reduced to 3.75percent that was 5 percent before.
TDS on specialist fee can be deduced from 2 percent to 1.5 percent. Payment deposited beneath the National Savings Scheme will attract 7.5percent TDS in comparison to 10 percent. Furthermore, Payments created for its repurchase of units by Mutual Funding will bring 15 percent TDS in contrast to 20 percent TDS that was the previous speed. Insurance commission and broker benefited using a brand new TDS speed of 3.75% that was 5 percent before. Likewise dividends from the mutual fund will bring 7.5percent TDS that was 10 percent before.
TCS Rates are reduced on the sale of garbage, forest produce, tendu leaves, wood, and minerals like coal, iron, lignite. CBDT also made it very clear that there’ll be no TDS/ TCS speed decrease in cases where tax is accumulated at a higher rate because of not having PAN or Aadhaar.
If you want more information about the CBDT Reduced 25% TDS Rates and TCS Rates on 23 Items Then navigate to this link https://www.incometaxindia.gov.in/Lists/Press%20Releases/Attachments/834/Press-Release-Reduction-in-TDS-TCS-Rates-dated-14-05-2020.pdf
FAQs (Frequently Asked Questions)
What is CBDT?
The Central Board of Direct Taxes is a statutory Jurisdiction Working under the Central Board of Revenue Act, 1963.
The officers of the Board within their ex-officio capacity additionally be the Section of the Ministry dealing with issues pertaining to levy and collection of direct taxation.
What is present CBDT Chairman?
NEW DELHI: The biography of CBDT Chairman Pramod Chandra Mody was expanded by an year, a government arrangement stated on Thursday. According to the arrangement, the Appointments Committee of the Cabinet (ACC), led by Prime Minister Narendra Modi, has declared”re-appointment” of Mody for a period of one year.
What is rule of TDS Deduction?
TDS is deducted only when your earnings is taxable. But, TDS won’t be deducted if your whole earnings is Rs. 2,50,000 and this number is appropriate for women and men beneath the era of 60 decades. Notice :TDS deduction speed on wages ranges from 5% to 30% that’s equal to the income tax refunds.
How is TCS Calculated?
The bill value or selling price is Rs 11200.00. Hence the TCS has been calculated with this amount. Means we included”Scrap worth + GST 12 percent” to arrive in the total”Revenue worth”. … TCS 1 percent with this”Sale Value” is Rs 112.00 and this can be withheld straight back from the entire payment.