- Apprentice Lawyer
- Legal Jobs
The Central Government has announced a reduction in rate of Tax Deduction at Source (TDS) and Tax Collection at Source (TCS).
The move is aimed at providing more funds at the disposal of the tax payers for dealing with the economic situation arising out of COVID-19 pandemic.
The rate of Tax Deduction at Source (TDS) has been reduced by 25% for the following non-salaried specified payments made to residents, for period from May 14 ,2020 to March 31,2021:
Further, the rate of Tax Collection at Source (TCS) has been reduced by 25% for the following specified receipts, for the period from May 14,2020 to March 31, 2021:
It is clarified 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.
Legislative amendments in this regard shall be proposed in due course.
Read the Press Release: