TDS rates are reduced by 25% to enhance liquidity
The Hon’ble Finance Minister in her press conference today has announced various liquidity enhancement and other measures in view of distress being faced due to Covid-19.
One of the key announcements relates to reduction in TDS/TCS rates. The key points in this regard are as under:-
· The TDS rates for non-salaried specified payments made to residents and TCS rates shall be reduced by 25% of the existing rates. Please note that such reduction in TDS rates is not applicable to Salary payments.
· This applies to all payments such as payment for contract, professional fees, interest, rent, dividend, commission, brokerage etc.
· This reduction shall be applicable for remaining part of F.Y. 2020-21 i.e. from 14th May 2020 till 31st March 2021. Therefore, any credit/payment (whichever is earlier) on 14th May 2020 or after (till 31st March 2021) will trigger the applicability of TDS at reduced rates.