7th July, 2020 is the due date for TDS and TCS payments for the deductions/collections made in June, 2020. Make sure to do the needful on time to avoid interest implication.
15th July – Due date for TCS Returns for FY: 20-21, Quarter 1 (Apr’20 – Jun’20)
31st July – Due date for filing TDS/TCS Returns for FY: 19-20, Quarter 4 (Jan’20 – Mar’20)
31st July – Due date for filing TDS/TCS Returns for FY: 20-21, Quarter 1 (Apr’20 – Jun’20)
Note – These compliance dates are as of 2nd July 2020. Owing to COVID 19, it is subject to changes based on notification(s) by the Income Tax Department.
As part of the initiative in improving liquidity owing to the COVID crisis, it has been announced that TDS / TCS rates for non-salary payments will be reduced by 25% across the board. This would be for all payments from 14th May 2020 to 31st March 2021.
The revised TDS / TCS chart is as under:
TDS Rate Chart for FY 2020-21 Pre & Post 14th May 2020
S. No
Section of the Income-tax Act
Nature of Payment
Existing Rate of TDS
Reduced rate from 14/05/2020 to 31/03/2021
1
193
Interest on Securities
10%
7.5%
2
194
Dividend
10%
7.5%
3
194A
Interest other than interest on securities
10%
7.5%
4
194C
Payment of Contractors and sub-contractors
1% (individual/HUF)
2% (others)
0.75% (individual/HUF) 1.5% (others)
5
194D
Insurance Commission
5%
3.75%
6
194DA
Payment in respect of life insurance policy
5%
3.75%
7
194EE
Payments in respect of deposits under National Savings Scheme
10%
7.5%
8
194F
Payments on account of re-purchase of Units by Mutual Funds or UTI
20%
15%
9
194G
Commission, prize etc., on sale of lottery tickets
5%
3.75%
10
194H
Commission or brokerage
5%
3.75%
11
194-I(a)
Rent for plant and machinery
2%
1.5%
12
194-I(b)
Rent for immovable property
10%
7.5%
13
194-IA
Payment for acquisition of immovable property
1%
0.75%
14
194-IB
Payment of rent by individual or HUF
5%
3.75%
15
194-IC
Payment for Joint Development Agreements
10%
7.5%
16
194J
Fee for Professional or Technical Services (FTS), Royalty, etc.
2% (FTS, certain royalties, call centre)
10% (others)
1.5% (FTS, certain royalties, call centre)
7.5% (others)
17
194K
Payment of dividend by Mutual Funds
10%
7.5%
18
194LA
Payment of Compensation on acquisition of immovable property
10%
7.5%
19
194LBA(1)
Payment of income by Business trust
10%
7.5%
20
194LBB(i)
Payment of income by Investment fund
10%
7.5%
21
194LBC(1)
Income by securitisation trust
25% (Individual/HUF)
30% (Others)
18.75% (Individual/HUF)
22.5% (Others)
22
194M
Payment to commission, brokerage etc. by Individual and HUF
5%
3.75%
23
194-O
TDS on e-commerce participants
1%
(w.e.f. 1.10.2020)
0.75%
2. Further, the rate of Tax Collection at Source (TCS) for the following specified receipts has also been reduced by 25% for the period from 14th May, 2020 to 31st March, 2021:-
TCS Rate Chart for FY 2020-21 Pre & Post 14th May 2020
S. No
Section of the Income-tax Act
Nature of Receipts
Existing Rate of TCS
Reduced rate from 14/05/2020 to 31/03/2021
1
206C(1)
Sale of
(a) Tendu Leaves
5%
3.75%
(b)Timber obtained under a forest lease
2.5%
1.875%
(c) timber obtained by any other mode
2.5%
1.875%
(d) Any other forest produce not being timber/tendu leaves
2.5%
1.875%
(e) scrap
1%
0.75%
(f) Minerals, being coal or lignite or iron ore
1%
0.75%
2
206C(1C)
Grant of license, lease, etc. of(a) Parking lot
2%
1.5%
(b) Toll Plaza
2%
1.5%
(c) Mining and quarrying
2%
1.5%
3
206C(1F)
Sale of motor vehicle above 10 lakhs
1%
0.75%
4
206C(1H)
Sale of any other goods
0.1%
(w.e.f 01.10.2020)
0.075%
3. Therefore, TDS on the amount paid or credited during the period from 14th May, 2020 to 31st March, 2021 shall be deducted at the reduced rates specified in the table in para 1 above. Similarly, the tax on the amount received or debited during the period from 14th May, 2020 to 31st March, 2021 shall be collected at the reduced rates specified in the table in para 2 above.
4. It is further stated that there shall be no reduction in rates of TDS or TCS, where the tax is required to be deducted or collected at higher rate due to non-furnishing of PAN/Aadhaar. For example, if the tax is required to be deducted at 20% under section 206AA of the Income-tax Act due to non-furnishing of PAN/Aadhaar, it shall be deducted at the rate of 20% and not at the rate of 15%.
5. Legislative amendments in this regard shall be proposed in due course.
* 7th July – due date for TDS/TCS payment for deductions/collections during June’20 * 15th July – due date for TCS Returns for FY:20-21, Quarter 1 (Apr’20 – Jun’20) * 31st July – due date for filing TDS/TCS Returns for FY:19-20, Quarter 4 (Jan’20 – Mar’20) * 31st July – due date for filing TDS/TCS Returns for FY:20-21, Quarter 1 (Apr’20 – Jun’20)
* Note: As of 2nd July 2020, there has been no extension announced by the Income Tax Department.
The due date to file TDS Returns for the quarter April 2020 to June 2020 is 31st July 2020 and for TCS Returns is 15th July 2020. As of 1st July 2020, there has been no extension announced by the Income Tax Department.
Please note the last dates for TDS / TCS Returns falling in July 2020 as under:
