When and how to deduct TDS , COVID 19 new TDS rates

tds rates financial year 2020-2021

TDS means tax deducted at source it means income tax is deducted by the person who make to payment from the amount paid and balance is paid. Amount so deducted is deposited in government account against PAN number of the receiver of income by periodical TDS Return filing . Accumulated TDS amount deducted is used to pay final income tax calculated while filing Income tax returns.

Proprietorship should deduct TDS only if they are liable to TAX audit and monthly rental payment exceeds Rs.50,000.

TDS deduction is compulsory for partnership firm and private limited company.

General TDS Rates for FY 2020 – 2021 –

1. Rent  per annum is greater than 2,40,000 – 194I10 %

W.E.F 14.05.2020 to 31.03.2021

7.5 %

2. Salary 192As per slab rate to be deducted proportionally
3. Contract payment – 194C

Single payment – 30,000
Limit During the financial year 1,00,000

Individual and HUF – 1%
Others 2 %.W.E.F 14.05.2020 to 31.03.2021Individual and HUF – 0.75%
Others 1.5 %.
4. Commision of Brokerage 194H if commision Exceeds 150005%

W.E.F 14.05.2020 to 31.03.2021

3.75%

5. Fees for professional services – 194J –  if amount exceeds 30,000 P.A10 %

W.E.F 14.05.2020 to 31.03.2021

7.5%

Due date for TDS return filing

PERIOD                                                                                         DUE DATE

1st Quarter – April 2020- June 2020 July 31 st
2nd  Quarter – July 2020- September 2020October 31st
3rd Quarter – October 2020 – December 2020January 31st
4 th Quarter – January 2021 – March 2021May 31 st

Due date for TDS payment in online mode is  7 th of the following month , and for month of march it is 30 th of april.

Due dates are revised as a Effect of COVID -19 the same had been not updated here.

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