a) In order to provide more funds at the disposal of the taxpayers for dealing with the economic situation arising out of COVID-19 pandemic, the rates of Tax Deduction at Source (TDS) for the non-salaried specified payments made to residents has been reduced by 25% for the period from 14th May 2020 to 31st March 2021
b) In order to provide more funds at the disposal of the taxpayers, the rates of Tax Deduction at Source (TDS) for non-salaried specified payments made to residents and rates of Tax Collection at Source (TCS) for the specified receipts shall be reduced by 25% of the existing rates.
c) The Finance Minister Nirmala Sitharaman said that Payment for the contract, professional fees, interest, rent, dividend, commission, brokerage, etc. shall be eligible for this reduced rate of TDS.
d) This reduction shall be applicable for the remaining part of the FY 2020-21 i.e. from tomorrow to 31st March 2021.
e) The Finance Minister also said that It will help to Rs 50,000 crores liquidity through TDS/TCS rate reduction