As a part of Rs 20 lakh Cr financial bundle, Finance minister Nirmala Sitharaman on Wednesday introduced lowered TDS/TCS for the non-salaried specified funds made to residents by 25 per cent for steadiness interval of FY21.
(Representative Image/ Getty)
New Delhi: Finance Minister Nirmala Sitharaman on Wednesday introduced new tax measures in keeping with which, the taxpayers who haven’t furnished Pan or Aadhaar numbers whereas submitting tax returns won’t get the advantage of decrease charges of Tax Collection at Source (TCS) and Tax Deduction at Source (TDS).
As a part of Rs 20 lakh Cr financial bundle, Finance minister Nirmala Sitharaman on Wednesday introduced lowered TDS/TCS for the non-salaried specified funds made to residents by 25 per cent for steadiness interval of Financial Year 2020-21. This was achieved to supply extra money into the palms of the taxpayers to cope with the financial state of affairs amid Covid-19 pandemic.
However, the federal government has clarified that lowered charges wouldn’t be relevant to tax payers who’ve been denied decrease charges (of TCS/TDS) as a consequence of non-furnishing of PAN/Aadhaar.
The tax is required to be deducted at a fee of 20 per cent or greater for this class of taxpayers as per the provisions of part 206 AA of the Income-tax Act.
As per the federal government announcement, the lowered fee of TDS might be relevant to cost for contract, skilled charges, curiosity, hire, dividend, fee, brokerage. The new decrease charges of TDS and TCS might be efficient for the remaining a part of the FY 2020-21 i.e. from Thursday 14 May 2020 to 31 March 2021.
TCS is relevant on sale of Tendu Leaves, timber obtained below a forest lease, another forest produce, scrap, minerals, grant of licence, lease of parking heaps, mining and quarrying, sale of motor automobiles, above charges of Rs 10 lakh. The fee of TDS ranges between 1 per cent and 30 per cent relying on the supply of earnings, whereas the speed of TCS ranges between 0.10 per cent and 5 per cent.
(With inputs from IANS News Agency)