Payment of TDS for rent, national savings scheme, mutual funds, property “: latest rate | Income tax announcement by Finance Minister Nirmala Sitharaman Today

Here are some important announcements about FM Nirmala Sitharaman’s income tax

Clarification on TDS, cut TCS: Today’s government clarified the decision on TDS, the TCS cuts announced yesterday. At a press conference today, Ajay Bhushan Pandey, Revenue Secretary, said the TDS was reduced by 23 items, such as securities, bank accounts, securities, payments to professionals, etc. In addition, the TCS was reduced by 12 elements. He said the rates at which TDS and TCS were reduced in various transactions have been reduced by 25 percent. This has been done to make more money available to people.

The CBDT has also notified various fees for TDS and TCS. According to the notice, there will be no reduction in TDS or TCS rates when the tax is required to be deducted or collected at a higher rate due to lack of supply of PAN / Aadhaar.

On Wednesday, Finance Minister Nirmala Sitharaman announced a reduction in the rate of deducted taxes at source (TDS) and taxes collected at source (TCS) for non-salaried payments. Today, the Central Direct Tax Board (CBDT) notified the revised rates that will be applicable from May 14, 2020 to March 31, 2021. Sitharaman had announced a series of measures to help businesses and taxpayers overcome the difficulties caused by blocking the coronavirus. She had stated that the reduction in the TDS / TCS rate would release around Rs 50,000 crore in the hands of people.

CBDT notification: where you have to pay less TDS, TCS

• The CBDT said today that the tax deducted on the payment of dividends, insurance policy, rent, professional fees and on the acquisition of real estate has been reduced by 25 percent during a period until March 31.
• The TCS on sale of the motor vehicle above Rs 10 lakh dropped to 0.75 percent from the previous 1 percent, the TDS on 23 items declined.
• The TDS for paying the life insurance policy has been reduced from 3% to 3.75 percent.
• The dividend and interest, as well as the rental of real estate, have been reduced to 7.5 percent from the previous 10 percent.
• The 1 percent of TDS collected on the payment made for the acquisition of real estate has now been reduced to 0.75 percent. The rent payment per person or per HUF has been reduced to 3.75 percent from the previous 5 percent.
• The TDS in e-commerce participants has also dropped to 0.75 percent from 1 percent.
• The professional fee tax has been reduced to 1.5 percent from 2 percent.
• The TDS of payments with respect to deposits under the National Savings System has been reduced from 10% to 7.5 percent and
• TDS on unit repurchase payments by mutual funds at 15 percent from 20 percent.
• The TDS on insurance and brokerage fees has been lowered to 3.75 percent from 5 percent.
• The TDS on the payment of dividends by mutual funds has been reduced to 7.5 percent from 10 percent.
• The TCS in the sale of tendu leaves, scrap, wood, forest products and minerals such as coal, lignite or iron ore has also been reduced.
• There is no reduction in TDS or TCS rates where the tax is required to be deducted or collected at a higher rate due to lack of supply of PAN / Aadhaar.