COVID 2019 – No change in TDS / TCS payment dates

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As per the press note issued by Department of Revenue, Ministry of Finance on 31/03/2020, the following has been mentioned related to TDS & TCS:

“It has provided that reduced rate of interest of 9% shall be charged for non-payment of Income-tax (e.g. advance tax, TDS, TCS) Equalization Levy, Securities Transaction Tax (STT), Commodities Transaction Tax (CTT) which are due for payment from 20.03.2020 to 29.06.2020 if they are paid by 30.06.2020. Further, no penalty/ prosecution shall be initiated for these non-payments.”

Based on the above, there is no change in the due dates of TDS & TCS payments. However, for non-payment, lower interest rate (@9% p.a. instead of @18%) will apply and further, no penalty / prosecution shall be initiated for these non-payments. This relaxation will apply only if all amounts falling due from 20.03.2020 to 29.06.2020 is paid by 30.06.2020.

The summary of the above relaxation as applicable for the months of Feb’20 to June’20 is as under:

 

  Month Payment Due Date Relaxation
TDS February 2020 07.03.2020 Not Applicable
March 2020 30.04.2020 Applicable
April 2020 07.05.2020 Applicable
May 2020 07.06.2020 Applicable
June 2020 07.07.2020 Not Applicable

 

  Month Payment Due Date Relaxation
TCS February 2020 07.03.2020 Not Applicable
March 2020 07.04.2020 Applicable
April 2020 07.05.2020 Applicable
May 2020 07.06.2020 Applicable
June 2020 07.07.2020 Not Applicable

Click Here  for the original Press Note dated 31/03/2020

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Extension of Nil or Lower TDS/TCS Certificate to 30th June 2020

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CBDT vide Notification No. F.No.275/25/2020-IT(B) dated 31st March 2020 has provided relief to the applicants of certificates for lower or nil TDS / TCS, under section 195, 197, 206C of the Act for the FY 2020-21 owing the disruption caused by COVID-19.

The date has been extended in the following cases:

  • Assessees who have applied for a nil or lower rate of TDS on the TRACES portal for FY 2020-21, which are pending disposal as of date and who have been issued a certificate for the preceding FY 2019-20, such certificate shall be applicable till 30th June 2020 for FY 2020-21, or disposal of their applications, whichever is earlier.
  • Assessees who could not apply for FY 2020-21 and who have been issued a certificate for FY 2019-20, such certificate shall be applicable till 30th June 2020 for FY 2020-21. However, such assessees need to apply for issue of certificate for FY 2020-21 at the earliest as per the modified procedure as soon as normalcy is restored or 30th June 2020. The modified procedure is explained later in the article.
  • With respect to payments made to non-residents (including foreign companies) having a Permanent Establishment (PE) in India who are not covered by the situations mentioned above (i.e. they do not have an existing lower / nil TDS certificate for the FY 2019-20), tax is to be deducted at 10 percent (+surcharge & cess) on such payments to be made till 30th June 2020, or disposal of their applications, whichever is earlier.


Modified procedure

  • Assessees who have not applied for Nil or lower TDS/TCS certificate and who do not have a certificate for FY 2019-20, are required to make an application as per the modified procedure.
  • The modified procedure for application under sections 197/206C(9) is as under:
  • Applications to be made via email to the concerned Assessing Officer (AO)
  • Email should contain the following data and documents:1. Duly filled Form 13 along with Annexure I / Annexure III
    2. Details / documents as required to be uploaded while filling Form 13
    3. Projected Balance Sheet (BS) and Profit & Loss (P&L) Account for FY 2020-21
    4. Provisional BS and P&L Account for FY 2019-20
    5. BS and P&L Account for FY 2018-19
    6. Form 26AS for FY 2019-20 & 2018-19
    7. Income tax Return (ITR) Form for FY 2018-19
  • The existing process for making applications under section 195(2) and 195(3) will continue to apply except that such applications need to be made via email to the concerned AO. The certificates under the said sections will be issued over email.
  • The certificates under the modified procedure shall be issued up to 30th June 2020 or earlier, as specified by the AO communicated by email to the applicant containing the following information:
  • Serial No.
  • TAN of the Deductor
  • PAN of the Deductee
  • Financial Year
  • Section under which TDS/ TCS
  • Estimated Amount of income/sum to be received /paid
  • Applicable rate of deduction/collection
  • Valid from
  • Valid to

The issuance of the certificate will be communicated to the applicant who can share the same with deductor / collector.

Link to the original notification

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TDS & TCS Rate Chart (FY: 2020-21 / AY: 2021-22)

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  TDS RATE CHART FY: 2020-21 (AY: 2021-22)
Section Nature of Payment  Threshold Indv/ HUF Others
    Rs. TDS Rate (%)
192 Salaries  –  Avg  –
192A Premature withdrawal from EPF  50000 10 –
193 Interest on Securities  10000 10 10
194 Dividends  5000 10 10
194A Interest (Banks)  40000 10 10
194A Interest (Others) 5000 10 10
194A Senior Citizen 50000 10 –
194B Winning from Lotteries  10000 30 30
194BB Winnings from Horse Race 10000 30 30
194C Contractor – Single Transaction  30000 1 2
194C Payment to Contractor
(including Transporter with more than 10 carriages)		 1 Lakh 1 2
194C Transporter (44AE) declaration with PAN (upto 10 carriages) – – –
194D Insurance Commission (15G-15H allowed)  15000 5 10
194DA Life insurance Policy  1 Lakh 1 1
194E Non-Resident Sportsmen or Sports Association – 20 20
194EE  NSS  2500 10 10
194F Repurchase Units by MFs  –  20 20
194G Commission – Lottery  15000 5 5
194H Commission / Brokerage  15000 5 5
194I  Rent of Land and Building – F&F 2.40 Lakh 10 10
194I Rent of Plant / Machinery / Equipment  2.40 Lakh 2 2
194IA  Transfer of certain immovable property other than agriculture land 50 Lakh 1 1
194IB Rent by Individual / HUF (wef 01.06.2017) 50000/PM  5 –
194IC Payment under Specified agreement – 10 10
194J  Professional Fees / Technical Fees / etc. 30000 10 10
194J  Payment to Call Centre Operator (wef 01.06.2017) 30000 2 2
194LA Compensation on transfer of certain immovable property other than agricultural land 2.50 Lakh  10 10
194LA Immovable Property (TDS exempted under RFCTLARR Act (wef 01.04.2017) – – –
194LB Income by way of interest from infrastructure debt fund (non- resident) – 5 5
194LBA Certain income from units of a business trust(applicable from 01.10.2014) – 10 10
194LBA Certain income from units of a business trust to non resident (applicable from 01.10.2014) – 5 5
194LBB Income in respect of units of investment fund – 10% For Residents, 30 % For NonResidents 10% For Residents, 40% For Non Residents
194LBC Income in respect of investment in securitization trust – 30% For Residents, 40% For Non Residents, 25% for Individual and HUF 30% For Residents, 40% For Non Residents, 25% for Individual and HUF
194LC  Income by way of interest by an Indian specified company to a non-resident / foreign company on foreign currency approved loan / long-term infrastructure bonds from outside India (applicable from July 1, 2012) – 5 5
194LD  Interest on certain bonds and Govt. Securities (from 01-06-2013) – 5 5
194N  Cash withdrawal in excess of 1 crore during the previous year with bank or co-operative society (wef 01.09.2019) – 2 2
Note : TDS Rates without PAN – 20% flat (if TDS rate is lower than 20%)

Note: The above list covers most of the sections applicable for domestic transactions

TCS RATE CHART FOR FY: 2020-21 (AY: 2021-22)
Section Nature of Payment TCS Rate %
 206C Scrap 1
 206C Tendu Leaves 5
 206C Timber  obtained  under  a forest lease or other mode 2.5
 206C Any other forest produce not being a timber or tendu leave 2.5
 206C Alcoholic Liquor for human consumption 1
 206C Parking   Lot,   Toll   Plaza, Mining and Quarrying 2
 206C Minerals, being coal or lignite or iron ore (applicable   from   July   1,2012) 1
 206C Sale of motor vehicle of the value exceeding Rs. 10 Lacs; (wef 01.06.2016)

Motor vehicle clause not applicable on Central Government, a State Government, an embassy, a High Commission, Legation, Commission, Consulate and the Trade Representation of a foreign State; Local Authority ; a Public Sector Company which is engaged in the business of carrying passengers (wef 01.04.2017)

 1
 206C Bullion if consideration (excluding any coin / article weighting 10 grams or less) exceeds Rs. 2 Lakhs 1
 206C TCS on sale in cash of any goods (other than bullion/jewellery) 1
 206C TCS on providing of any services (other than Ch-XVII-B) 1
Note : TCS Rates without PAN – Double of TCS rate as above or 5%, whichever is higher

Note: The above list covers most of the sections applicable for domestic transactions

Click here to download the list of TDS & TCS Rate Chart for FY: 2020-21.

Note :
1. Surcharge is not deductible on payments made to residents, other than salary.
2. In case of non-resident, surcharge would be applicable on TDS.

Disclaimer : Efforts have been made to provide correct information. However, we do not take liability of any kind in case of any error or miscommunication in the article.

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Special Discount on TDSMAN (FY: 2020-21)

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On popular demand, we are pleased to announce the release of TDSMAN (FY: 2020-21). Now you can prepare TDS Returns for Q4 of FY: 2019-20 and all quarters of the next FY: 2020-21:

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