The Union authorities lowered the tax deducted at supply (TDS) and tax collected at supply (TCS) charges by 25 per cent on non-salaried funds efficient from Might 14, 2020, till March 31, 2021. The federal government undertook the choice to supply further liquidity to individuals by reducing tax charges.
To extend liquidity within the palms of individuals and assist them combat the coronavirus-induced recession, the federal government introduced numerous aid measures on Might 13, 2020. Non-salaried funds embrace curiosity earned on mounted deposits (FDs), dividend revenue, amongst different revenue sources. TDS kicks in at completely different ranges for numerous funds.
The aid measures had been introduced by finance minister Nirmala Sitharaman.
New TDS, TCS charges
TDS on FD curiosity paid by a financial institution will now be deducted at 7.5 per cent as a substitute of 10 per cent earlier. Equally, a tenant will probably be required to deduct the TDS on hire exceeding Rs 50,000 monthly at 3.75 per cent as a substitute of 5 per cent earlier.
Now with the 2021-22 finances scheduled to be offered by Ms Sitharaman on February 1, taxpayers are hoping for extra aid measures to assist survive the Covid-19-induced recession hit financial system.