CBDT recently released notification and said that TDS rates on 23 items have been reduced, It also released the revised TDS and TCS rates which will be applicable from yesterday throughout the current FY i.e. till 31st March 2021.
It happens by following the recent announcement made by finance minister Nirmala Sitharaman, in response to it, the IT department has reduced rates by 25% of tax deducted at source on rent, insurance policy, payment of dividend, professional fee, acquisition of immovable property, etc. This will be applicable throughout the ongoing financial year i.e. 2020-2021.
Read Also: Section 194I, 194IB & 194IC for TDS Under Income Tax Act 
Know everything about TDS section 194I, 194IB & 194IC that are related to rent under the income tax. Also, we covered some special points under section 194I. Read more
In the Notification CBDT stated that TCS on sale of motor vehicles having a price more than ₹10 lakh has been cut from 1% to 0.75%, along with it, TDS rates have been also reduced on 23 other items.
As per the notification, TDS on insurance premium payment has been reduced from 5% to 3.75%. TDS on Dividend and interest and rent for immovable property has been reduced from 10% to 7.5%. Additionally, there was a 1% TDS charge applicable on payment for the acquisition of immovable property which is now reduced to 0.75%. Payment of rent by individual or HUF has been also reduced to 3.75% which was 5% earlier.
Moreover, tax deducted at source (TDS) on e-commerce participants is now 0.75% which was earlier 1 percent. TDS on professional fee 
Know about section 194J under TDS for technical and professional services fees. Also, check amendments of TDS section 194J due to finance bill 2020 with general queries. Read more is also deduced from 2% to 1.5%. Payment deposited under the National Savings Scheme will now attract 7.5% TDS compared to 10%. Additionally, Payments made for the repurchase of units by Mutual Funds will attract 15% TDS compared to 20% TDS which was the earlier rate. Insurance commission and brokerage benefited with a new TDS rate of 3.75% which was 5% earlier. Similarly, dividends by the mutual fund will attract 7.5% TDS which was 10% earlier.
TCS Rates have been reduced on the sale of scrap, forest produce, tendu leaves, timber, and minerals such as iron, coal, lignite. CBDT also made it clear that there will be no TDS/ TCS rate reduction in cases where tax is collected at a high rate due to the absence of PAN or Aadhaar.
As per the government of India TDS & TCS has been reduced 25% till 31st March 2021. Please clear the Section no-m 206C (1H) some typical mistake in existing rate & reduce rate. (i.e if 0.1% TCS will be 0.075 % after reduce) Please clarify the existing rate of TCS & REDUCE RATE OF TCS FOR SECTION NO. 206C (1H).
The existing rate of TCS Section 206 C(1H) is 0.075% till 31st March 2021 and from 1St April 2021 it will be 0.1%
if I deducted TDS @ 1% can i deposit 1% on 0.75%
PLEASE READ THE SECTION CAREFULLY
dear sir
1) what is the procedure for our costumer’s pending amount as on 30-9-20 is more than 60lack they are applicable for TCS
2) if we are cutting .1% TCS on sales bill not applicable .075% it is true
1. If an amount is pending from the customer before 30th September then the TCS will be applicable on the amount received above Rs 50 lakhs from 1st Oct 2020
2. Yes till 31st march 2021 applicable rate is .075%
Hi,
1% TDS charge applicable on payment for the acquisition of immovable property which is now reduced to 0.75%.
Does this mean I will pay 0.25% less to acquire a property.
No you have to pay full amount as only TDS rate which is required to be deducted is decreased. This does not effect property value.
Sir
New 25% reduction rates are applicable or not ???? to bills not paid / no expenses provisions / no debit for FY 2019-20
Example:
Payment to vendor for consultancy charges for Feb-20 / or cleaning charges for Feb-20
New reduction rate is applicable or old rate applicable??
Provision was not made in fy 2019-20 and no payment to vendor till 14/05/2020
New 25% reduction rates are applicable if payment made on or after 14th May 2020
I have given my house on rent of Rs 29700/- P. M. w.e.f. 01/05/2019. The company is deducting 10% T. D. S. regularly n deducted it up to 31/03/2020. I’m desirous to know that which is last date to deposit the whole T. D. S.
Money, deducted from me by the company to the Govt.
Due Date For Payment of TDS for the month of March 2020 was 30 April 2020