As our country is going through a very tough phase due to COVID-19, our Honorable Prime Minister Shri Narender Modi had announced a special package of Rs 20 lacs crore to help the people of India. This package helps to increase the liquidity in the hands of the common man and battle COVID-related financial stress. On May 13 2020, the Finance Minister announces various relief measures, among them, reduction in the tax deducted at source (TDS) and tax collected at source (TCS) by 25 percent on non-salaried payments, was one relief. Non- salaried payments include interest earned on fixed deposit, dividend income, rent payment, etc.
The existing rates and New Rates of TDS & TCS are as follows:-
| SECTION | NATURE OF PAYMENT | THRESHOLD LIMIT | TILL 13/05/2020 TDS RATE (%) | FROM 13/05/2020 TDS RATE(%) |
192 | SALARIES | – | NORMAL SLAB RATE | NORMAL SLAB RATE |
| 192A | Premature withdrawal from EPF | 50000 | 10 | 10 |
| 193 | Interest on securities – 8% Savings (Taxable) Bonds, 2003 or 7.75% Savings (Taxable) Bonds, 2018 during the financial year | 10,000 | 10 | 7.5 |
| 193 | Interest on securities – Interest on securities for money issued by or on behalf of any local authority/ statutory corporation, listed debentures of a company (other than demat form), any other interest on securities | 5000 in case of Individual | 10 | 7.5 |
| 194 | Dividends | 5000 | 10 | 7.5 |
| 194A | Interest (Banking co., co-operative society engaged in banking, post office) | 50,000 | 10 | 7.5 |
| 194A | Interest (Any other person) | 5000 | 10 | 7.5 |
| 194B | Winning from lotteries | 10,000 | 30 | 30 |
| 194BB | Winning from Horse Race | 10,000 | 30 | 30 |
| 194C | Contractor-Single transaction-Individual/HUF | 30,000 for each contract whereas 1,00,000 is for p.a | 1 | 0.75 |
| 194C | Contractor-Single transaction- Others | 30,000 for each contract whereas 1,00,000 is for p.a | 2 | 1.5 |
| 194D | Insurance Commission | 15,000 | 5 | 3.75 |
| 194EE | NSS | 2500 | 10 | 7.5 |
| 194F | Investment in Mutual Funds or UTI units | 0 | 20 | 15 |
| 194G | Commission-Lottery | 15,000 | 5 | 3.75 |
| 194H | Brokerage Earning | 15,000 | 5 | 3.75 |
| 194I | Rent of – Plant/Machinery/Equipment – Land and Building/Furniture & Fixture | 2,40,000 | 2 10 | 1.5 7.5 |
| 194J | Professional Fees | 30,000 | 10 | 7.5 |
| 194LA | Compensation on transfer of certain immovable property other than agriculture land | 2,50,000 | 10 | 7.5 |
| 194M | Certain payments by Individual/HUF | 50,00,000 | 5 | 3.75 |
| 194N | Payment of certain amount in cash | 1,00,00,000 | 2 | 2 |
| 195 | Fees for technical services | 0 | 10 | 10 |
| 194-O | Applicable for e-commerce operator for the sale of goods or provision of services facilitated by it through its digital or electronic facility or platform (w.e.f. 01.04.2020) | 0 | 1 | 0.75 |
| 194J | Technical Fees (w.e.f. 01.04.2020) | 30,000 | 2 | 1.5 |
| 194J | Director’s Fees | 0 | 10 | 7.5 |
| 194IC | Payment under Joint Development Agreements to Individual/HUF | 0 | 10 | 7.5 |
| 194IB | Rent by Individual/HUF | 50,000 per month | 5 | 3.75 |
| 194IA | Transfer of certain immovable property other than agriculture land | 50,00,000 | 1 | 0.75 |
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