Tds Rate on Contractor for Fy 2020-21

Article 194C: Payment to the Contractor or Subcontractor. Download the revised TDS graphic plan for fiscal year 2020-21 (AY 2021-22) in PDF format. TDS compliance is the most common but important compliance for the business world. Each year, during the fiscal budget, the government announces the TDS rates to be applied for the next fiscal year. Due to the changing economic scenario and other factors, the government is introducing new sections or amending some existing sections. Example: 194 H for IND /HUF: 3.75% and others: 5% However, the rate for 194H is 3.75% for all residents Please note that the modified rates have been indicated on the basis of the GDP communication of 13.05.2020 and no notification in this regard has been communicated by the CBDT at the time of publication of this article. The press release can be found at the following link – TDS stands for Tax Deducted at Source. The tables below list the different TDS rates that apply to resident and non-resident Indians, as well as domestic and international businesses in India. Anyone who pays income is responsible for deducting withholding tax and must file that tax within the time limit. In addition, it was said that TDS rates after taking into account cess @ 4% and should be increased by the applicable surtax. In accordance with § 201 (1A), interest of 1% per month or part of a month is calculated on the TDS amount from the date of the tax deduction until the date of the actual tax deduction.

For the benefit of our readers, we have summarized the full TDS rates for fiscal year 2020-21 (AY 2021-22). I would rate 5/5 for their services, prices and transparency. Refer to our separate discussion on non-resident SDTs or email our expert at for a free scan of your SDS for non-resident applications. Updates on TDS rate changes as announced by FM under Atma Nirbhar Bharat Abhiyan: Payments for contracts, fees, interest, rent, dividend, commission, brokerage, etc. are eligible for this reduced TDS rate. What should be the interest rate for TDS`s late payment for June 2020. That is, if you had to pay TDS at the rate of 10%, you only have to pay the TDS up to 7.5%. Download the latest TDS rate table for fiscal year 2020-21 and assessment year 2021-22 below For late payments of input tax, self-assessment tax, regular tax, SST, CHT, balancing levy, TWU, TTC, TTC, CTT, which take place between March 20, 2020 and March 30, 2020, In June 2020, a discounted interest rate of 9% instead of 12%/18% per year (i.e. 0.75% per month instead of 1/1.5% per month) will be charged for this period. No late payment fees/penalties will be charged for delays in this period. This table represents incorrect rates for non-individuals because the press release Reduction of the Tax Deduction rate at source (TDS) and the collection of withholding tax (CHT) of May 13, 2020 does not speak of different rates for individuals and non-individuals. In addition, the SDS will be deducted from the amount paid or credited during the period from May 14, 2020 to March 31, 2021 at the new reduced rates shown in the table.

Similarly, the tax will be levied over the period from 14 May 2020 to 31 May 2020. March 2021 amount received and debited collected at new rates as shown in the table An informative reading: Income tax rate for the fiscal year 2020-21 The TDS stands for tax deducted at source. Under the Income Tax Act, any business or person making a payment is required to deduct withholding tax if the payment exceeds certain thresholds. TDS must be deducted at the rates prescribed by the tax department. Read also- Detailed article on TDS rates for fiscal year 2020-21 at the following link- TDS rates for evaluation year 2020-21 and evaluation year 2021-22: The Minister of Finance today announced the 20 Lakh Crore stimulus package, in which it was announced that tomorrow`s current TDS rates will be reduced by 25% by March 31, 2021. TDS rates for employees remain unchanged and the old rates, i.e. plate sets, apply as usual. TDS Rate for Fiscal Year 2020-21 Evaluation Year 2021-22: Thank you for this detailed and useful information. I should be grateful if you could answer the following two questions. (I am an Sr. citizen with an income of less than Rs. three lakhs.) 1.

In the 2019-2020 financial year (AY 2020-21), interest income on fds in banks and post offices up to 50,000 is exempt from tax. If this will continue next year (fy 2020-21 Ay 2021-22). 2. If, in the current year, FD`s stake in banks and post offices is less than 50,000, there is no TDS and no 15 H form is required. Only if the amount exceeds 50,000 amounts, Form 15H must be filed to claim the TDS exemption. Please respond. With the simple TDS rate chart for fiscal year 2020-21 – Valid from 14. May 2020 If no PAN card is available, the tax must be deducted at higher rates, TDS rates will not be reduced as no TDS PAN card tariff table or AADHAAR for fiscal year 2020-21 / AY 2021-22 – COVID-19 and TDS rate update the government has granted TDS rate relief for the period 14.05.2020 31.03.2021, due to the pandemic and the resulting lockdown, which affects all sectors of the economy. Relief is limited only to TDS rates and not to rates at which tax is to be deducted or collected at a higher rate.

On 1 February 2020, Finance Minister Nirmala Sitharaman presented the Union`s financial budget for 2020. The amendment to Article 194 of the Income Tax Act raised the threshold for deducting withholding tax (TDS) on interest income, with the exception of interest on securities paid by a banking company, cooperative or post office, from Rs 10,000 to Rs 40,000. Interest earned on bank fixed deposits or recurring deposits and even term deposits at the post office remained taxable according to the income plate, but the TDS interest limit was increased. To revive the economy and help taxpayers as the COVID-19 crisis prevails in India, the Minister of Finance announced new TDS rates on May 13, 2020 by lowering non-salaried ministries by 25%. This reduction applies to the remainder of the 2020-21 fiscal year. These new rates are valid from May 14, 2020 to March 31, 2021. – The amount is greater than Rs.20 lakh, but up to Rs. 1 crore Article 196C: Income from foreign currency bonds or DDR of an Indian company (including long-term capital gains from the transfer of such bonds or DDR) The TDS for participants in e-commerce under Article 194-0 is 1% for the period from 01 April 2020 to 13 May 2020. and it will be 0.75% from May 14, 2020 to March 31, 2021.

To support MSMEs during this difficult time, TYASuite offers a free 6-month subscription to their e-procurement software. Article 194LC: Payment of interest by an Indian commercial company or trust in respect of money borrowed under a loan agreement or by the issuance of long-term bonds (including long-term infrastructure bonds) in foreign currency Article 194DA: Payment of a life insurance policy a) Bonds or securities against money issued by or on behalf of a local authority or an established registered office Company law, of the state or province;. Dharti Thakkar (B.Com, LLB) is an enthusiastic and intellectual young content writer at She studied law and after practicing law for a while, her interest in writing led her to choose a different career path and work as a content writer. She has been instrumental in creating wonderful content for! Article 194LA: Payment of compensation for the acquisition of certain properties Article 194O: Applicable to e-commerce operators for the sale of goods or the provision of services facilitated by them through their digital or electronic facility or platform (Applicable from 01.10.2020) b) Income from long-term capital gains in accordance with Article 115E in the case of a non-resident Indian citizen Article 194BB: Income from profits from horse racing Article 196A: Income relating to – Shares in an investment fund in accordance with clause (23D) of Article 10; or. (h) royalty revenues [and not royalties within the meaning of sub-items (b)(i)(F)] payable by the Government or an Indian group under an agreement it has entered into with the Government or group of India, and if such an agreement is entered into with an Indian group, the agreement shall be approved by the central Government or if it relates to a matter; which is included in the industrial policy, provisionally in force the agreements of the Government of India is in line with this policy. . . .