TDS

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The Tax Deducted at Source (TDS) rate has been reduced by 25% for payments made from 14th May 2020 to 31st March 2021. While announced by the Finance Minister, this change has not yet been formalised through a Presidential Ordinance, though one is anticipated. This measure is primarily a temporary relief, and individuals with taxable income may still need to pay advance tax, offering limited overall tax reduction.

Dushmanta Rana

Dushmanta Rana (Querist)
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15 June 2020 Is there is any new amendment for the rate of TDS for current Financial Year ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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15 June 2020 Yes, TDS reduced for payment made on or after 14/05/2020 25% of applicable rate.

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PARAS CHHAJED

PARAS CHHAJED

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16 June 2020 The Finance Minister announced for reductionist TDS rates w.e.f. 14.05.2020 and a press release was issued but so far no amendment brought in via Presidential Ordinance. One may hope that an ordinance will be promulgated by the President giving retrospective effect to the proposed TDS rate cut . The reduced rates would apply to payments made from 14.05.2020 to 31.3.2021. This is a short measure to simply show that TDS rate has been reduced and there is no reduction of taxes. One who is taxable income may have to pay Advance Tax and thereby no much relief. This just a matter of just showing some good thing to everybody.

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