Gov ernmentofIndia

Ministr
yofFinance
DepartmentofRev enue
Cent
ralBoardofDi r
ectTaxes
NewDel
hi13th May
, ,2020
PRESSRELEASE

Reduct
ioni
nrat
eofTaxDeduct
ionatSour
ce(
TDS)&TaxCol
lect
ionatSour
ce(
TCS)

I
nor dert
oprovidemor efundsatthedisposalofthet axpayer
sfordeal
i
ng
wit
ht heeconomicsituati
onarisi
ngoutofCOVI D-19pandemi c,therat
esofTax
Deducti
onatSource(TDS)f orthefol
lowi
ngnon-salar
iedspecifi
edpaymentsmade
t
h
toresi
dentshasbeenr educedby25% fortheperiodfrom 14 May o31st
,2020 t
March,2021:-

Secti
onof Nat
ureofPay
ment Exi
sti
ngRat
e Reducedrat
e
t
heIncome ofTDS from
S.No -t
axAct 14/05/2020
to
31/03/2021
1 193 I
nter
estonSecur
it
ies 10% 7.
5%
2 194 Di
vi
dend 10% 7.
5%
194A I
nterestot
herthan 10% 7.
5%
3
i
nterestonsecuri
ti
es
194C Paymentof 1% 0.75%
Cont
ract
orsandsub- (
indi
vi
dual/
HU (i
ndi
vi
dual /
H
4
contr
actor
s F) UF)
2%(other
s) 1.
5%(others)
5 194D I
nsur
anceCommi
ssi
on 5% 3.
75%
194DA Paymenti
nrespectof 5% 3.
75%
6
l
if
einsur
ancepoli
cy
194EE Paymentsinrespectof 10% 7.
5%
7 deposi
tsunderNational
Sav
ingsScheme
194F Paymentsonaccount 20% 15%
8 ofre-
purchaseofUnit
s
byMutualFundsorUTI
194G Commissi
on,pri
zeetc.
, 5% 3.
75%
9 onsaleoflot
ter
y
ti
cket
s
10 194H Commi
ssi
onor 5% 3.
75%
 br
oker
age
194-
I(
a) Rentf
orpl
antand 2% 1.
5%
11
machi
ner
y
194-
I(
b) Rentf
orimmov abl
e 10% 7.
5%
12
proper
ty
194-
IA Pay
mentforacqui
sit
ion 1% 0.
75%
13
ofimmov
ableproperty
194-
IB Paymentofr
entby 5% 3.
75%
14
i
ndi
vi
dualorHUF
194-
IC PaymentforJoi
nt 10% 7.
5%
15 Dev
elopment
Agreements
194J Feef orProf
essionalor 2%( FTS, 1.
5%( FTS,
TechnicalSer
v i
ces certain cert
ain
16 (FTS),Royal
ty,et
c. r oy alt
ies, cal
l royal
ties,cal
l
centre) cent r
e)
10%( ot hers) 7.5%(others)
194K Pay
mentofdiv
idendby 10% 7.
5%
17
Mutual
Funds
194LA Paymentof 10% 7.
5%
Compensati
onon
18
acqui
sit
ionof
i
mmov abl
eproper
ty
194LBA(
1) Pay
mentofincomeby 10% 7.
5%
19
Busi
nesstr
ust
194LBB(
i) Pay
mentofi
ncomeby 10% 7.
5%
20
I
nvest
mentf
und
194LBC(
1) I
ncomeby 25% 18.75%
securi
ti
sat
iont
rust (
Indi
vidual/
HU (I
ndi
vi
dual /
H
21 F) UF)
30%( Others) 22.5%
(Others)
194M Pay mentto 5% 3.
75%
commission,br
okerage
22
et
c.byIndiv
idualand
HUF
194-
O TDSone-commerce 1% 0.
75%
23 par
ti
cipant
s (w.e.f
.
1.
10.2020)
2.Further
,ther
ateofTaxCol
l
ect
ionatSour
ce(
TCS)f
ort
hef
oll
owi
ngspeci
fi
ed
recei
pts
hasalsobeenr
educedby25%f
ort
heper
iodf
rom 14t
hMay o31stMar
,2020 t ch,
2021:
-

Secti
onof Nat
ureofRecei
pts Exist
ing Reduced
t
he Rat
eofTCS rat
efrom
S.No I
ncome- 14/05/2020
taxAct to
31/03/2021
206C(
1) Sal
eof
(
a)TenduLeav
es 5% 3.
75%
(
b)Timberobt
ainedundera 2.
5% 1.
875%
f
orestl
ease
(c)ti
mberobt
ainedbyany 2.
5% 1.
875%
1 othermode
(d)Anyot
herf
orestpr
oduce 2.
5% 1.
875%
notbei
ngti
mber/t
enduleav
es
(
e)scr
ap 1% 0.
75%
(
f)Miner
als,
bei
ngcoal
or 1% 0.
75%
l
i
gnit
eorironor
e
206C(
1C) Grantofli
cense,
lease,
etc.of 2% 1.
5%
(a)Parki
nglot
2
(
b)Tol
lPl
aza 2% 1.
5%
(
c)Mi
ningandquar
ryi
ng 2% 1.
5%
206C(
1F) Sal
eofmot
orv
ehi
cleabov
e 1% 0.
75%
3
10l
akhs
206C(
1H) Sal
eofanyot
hergoods 0.
1% 0.
75%
4 (w.e.
f
01.
10.2020)

3.Ther
efor
e, TDSont heamountpai
dorcredi
tedduri
ngtheperi
odfom 14thMay
r ,
st
2020to31 Mar ch,2021shallbededuct
edatthereducedrat
esspeci
fiedint
he
tabl
einpar
a1abov e.Simi
lar
ly,
thetaxontheamountrecei
vedordebi
tedduri
ng
t
heperiodfrom 14th May,2020 to31stMar
ch,2021shal
lbecol
l
ect
edatt
he
r
educedrat
esspecifiedinthetabl
einpar
a2above.
4.Iti sfurt
herstatedthatther
eshallbenor educti
oni nrat
esofTDSorTCS,
wheret hetaxisrequir
edtobededuct edorcol l
ectedathigherrat
eduet onon-
fur
nishingofPAN/ Aadhaar
.Fore xample,i
fthetaxi srequi
redtobedeductedat
20% undersect ion 206AA oft he I
ncome-tax Actdue t o non-
fur
nishi
ng of
PAN/ Aadhaar,
itshall
bedeductedattherateof20%andnotatt herat
eof15%.

5.Legi
slat
iveamendment
sint
hisr
egar
dshal
lbepr
oposedi
nduecour
se.

(
SurabhiAhl uwal
ia)
Commi ssi
onerofIncomeTax
(Media&Techni calPoli
cy)
Of
fi
cialSpokesperson,CBDT