TDS/TCS Rate Chart from 14.05.2020 to 31.03.2021

Ashwin Jain | Last updated: 14 May 2020

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Quick Summary

From May 14, 2020, to March 31, 2021, the rates for Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) have been reduced by 25%. This temporary measure, announced by the Finance Minister, aims to provide financial relief. However, this reduction does not apply to salaried individuals or non-residents.

In the press conference held on May 13, 2020 the Finance Minister, Smt. Nirmala Sitharaman, announced that the rates of TDS/TCS in respect of specified payments/receipts shall be reduced by 25%. This concession in the rate shall be available for the tax deducted or collected between 14-05-2020 till

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FAQ :

The rates of TDS and TCS have been reduced by 25% for a specified period.

The reduced rates are applicable from May 14, 2020, to March 31, 2021.

The concession is available for tax deducted or collected between the specified dates, excluding salaried and non-resident taxpayers.

Yes, for example, the TDS rate for Interest on Securities (Section 193) reduced from 10% to 7.50%, and for Payment to Contractors (Section 194C), it changed from 1%/2% to 0.75%/1.50% depending on the deductee.

For instance, the TCS rate on Alcoholic liquor for human consumption (Section 206C(1)) reduced from 1% to 0.75%, and on Scrap (Section 206C(1)) reduced from 1% to 0.75%.