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The Major Changes and new TDS section introduced in Finance Act 2020 with effect from 1st April 2020

Nature of payment	Basic cut off (Rs.) (Old)	Basic cut off (Rs.) (New)	Rate % (old)	Rate % (old)	If NO Pan or Invalid Pan (Rate %)
194J – Professional Fees for technical services (w.e.f. from 1.4.2020)	30000	30000	10	2	20
194K- Payment of any income in respect of Units of Mutual fund as per section 10(23D) or Units of administrator or from a specified company	-	-	-	10	20
194N – Cash withdrawal in excess of Rs. 20 lakhs during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office.	20 Lakhs	20 Lakhs	-	2	20
194N – Cash withdrawal in excess of Rs. 1 crore during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office.	1 Crore	-	-	2	20
194O- Applicable for E-Commerce operator for sale of goods or provision of service facilitated by it through its digital or electronic facility or platform.	-	-	-	1	20

New Turnover limit for the purpose of Tax deducted at Source (TDS) applicability as per Finance Act 2020

TDS was applicable to individual and HUF if there accounts are liable to Audit in section 44AB in previous year. The Finance Act 2020, says All individuals & HUF will be liable to deduct TDS if, the turnover had cross Rs. 1 Crore in case of business and Rs. 50 Lakhs in case of profession in previous year. These amendment shall take effect from 1st April 2020.

Rates of TDS applicable for Financial Year 2020-21 Assessment Year 2021-22

Nature of Payment	Basic Cut off (Rs.)	Individuals and HUF (Rate %)	Company / Firm / LLP / Co-op Society / Local Authority (Rate %)	If No Pan or Invalid PAN (Rate %)
192 – Salaries	Slab Rate	Slab Rate	Slab Rate	30
192A- Premature withdrawal from Employee Provident Fund	50000	NA	10	30
193 – Interest on securities	-	10	10	20
194 – Dividend other than the dividend as referred to in Section 115-O	2500	10	10	20
194A – Interest other than interest on securities – Others	40000 (for individual)	10	10	20
194A – Banks (Time deposits)	40000 (for individual) 50000 (for Senior Citizens only)	10	10	20
194A – Banks (Recurring deposit)	40000 (for individual) 50000(for Senior Citizens only)	10	10	20
194A – Deposit in Co-op Banks	40000 (for individual) 50000(for Senior Citizens only)	10	10	20
194B – Winning from Lotteries	10000	30	30	30
194BB – Winnings from Horse Race	10000	30	30	30
194C- Payment to Contractor – Single Transaction	30000	1	2	20
194C-Payment to Contractor – Aggregate During the Financial year	100000	1	2	20
194C- Contract – Transporter not covered under 44AE	30000/75000	1	2	20
194C- Contract – Transporter covered under 44AE & submit declaration on prescribed form with PAN	-	-	-	20
194D – Insurance Commission	15000	5	5	20
194DA Payment in respect of life insurance policy	100000	1	1	20
194E – Payment to Non-Resident Sportsmen or Sports Association	-	20	20	20
194EE – Payments out of deposits under National Savings Scheme	2500	10	10	20
194F – Repurchase Units by MFs	-	20	20	20
194G – Commission – Lottery	15000	5	5	20
194H – Commission / Brokerage	15000	5	5	20
194I – Rent – Land and Building – furniture – fittings	240000	10	10	20
194I – Rent – Plant / Machinery / equipment	240000	2	2	20
194IA -Transfer of certain immovable property other than agriculture land	50,00,000	1	1	20
194IB – Rent – Land or building or both	50000 per month	5	-	20
194IC – Payment of Monetary consideration under Joint development agreement	-	10	10	20
194J – Professional Fees for technical services (w.e.f. from 1.4.2020)	30000	2	2	20
194J – Professional Fees in all other cases	30000	10	10	20
194K- Payment of any income in respect of Units of Mutual fund as per section 10(23D) or Units of administrator or from a specified company	-	10	10	20
194LA – TDS on compensation for compulsory acquisition of immovable Property	250000	10	10	20
194 LBA (1)- Business trust shall deduct tax while distributing, any interest received or receivable by it from a SPV or any income received from renting or leasing or letting out any real estate asset owned directly by it, to its unit holders.	-	10	10	0
194LB – Income by way of interest from infrastructure debt fund (non-resident)	-	5	5	20
194LBB – Income in respect of investment in Securitisation trust.	-	10	30	40
194LBC- Income in respect of investment made in a securitisation trust	-	25	30	40
194 LC – Income by way of interest by an Indian specified company to a non-resident / foreign company on foreign currency approved loan / long-term infrastructure bonds from outside India	-	5	5	20
194LD – Interest on certain bonds and govt. Securities	-	5	5	20
194M – Payment of Commission, brokerage, contractual fee, professional fee to a resident person by an Individual or a HUF who are not liable to deduct TDS under section 194C, 194H, or 194J.	50,00,000	5	5	-
194N – Cash withdrawal in excess of Rs. 1 crore during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office.	20,00,000	2	2	-
194N – Cash withdrawal in excess of Rs. 1 crore during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office.	100,00,000	2	2	-
194O- Applicable for E-Commerce operator for sale of goods or provision of service facilitated by it through its digital or electronic facility or platform.	-	1	1	-
195- Payment of any sum to Non resident	-	-	-	Higher of Rate in force or Double Taxation Avoidance Act rate
196B – Income from units	-	10	10	20
196C-Income from foreign currency bonds or GDR (including long-term capital gains on transfer of such bonds) (not being dividend)	-	10	10	20
196D – Income of FIIs from securities	-	10	10	20

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Due dates for TDS payment for Financial Year 2020-21 and Assessment Year 2021-22

Month	Due date for Government deductors	Due date for other deductors (Company, Individual, HUF etc)
April	7th May	7th May
May	7th June	7th June
June	7th July	7th July
June	7th July	7th July
August	7th September	7th September
September	7th October	7th October
October	7th November	7th November
November	7th December	7th December
December	7th January	7th January
January	7th February	7th February
February	7th March	7th March
March	7th April	30th April

Due dates for TDS quarterly Returns for Financial Year 2020-21 and Assessment Year 2021-22

Quarter	Period	Due Date
Q1	1 April 2020 – 30 June 2020	31st July 2020
Q2	1 July 2020 – 30 September 2020	31st October 2020
Q3	1 October 2020 – 31 December 2020	31st January 2020
Q4	1 January 2020 – 31 March 2021	31st May 2021

Interest on late payment and Late deduction of TDS:

As per section 201(1A) Interest at the rate of 1% per month or part of the month on amount of TDS from the date of tax was deductible till the date of tax actually deducted shall be charged for late deduction.

Also, for late payment Interest at the rate of 1.5 % per month or part of the month on amount of TDS from the date of tax was deducted till the date such tax is paid shall be charged.

Interest on late payment of TDS: Changes made as per Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020 dated 24th March 2020:

For delayed payments of advanced tax, self-assessment tax, regular tax, TDS, TCS, equalization levy, STT, CTT made between 20th March 2020 and 30th June 2020, reduced interest rate at 9% instead of 12 %/18 % per annum (i.e. 0.75% per month instead of 1/1.5 percent per month) will be charged for this period. No late fee/penalty shall be charged for delay relating to this period.

Fees for default in filing of TDS/ TCS return:

Fees is payable at Rs. 200 per day for each day during which the failure continues. The amount of fees cannot exceed than the amount of TDS

The Major Changes and new TDS section introduced in Finance Act 2020 with effect from 1st April 2020

New Turnover limit for the purpose of Tax deducted at Source (TDS) applicability as per Finance Act 2020

Rates of TDS applicable for Financial Year 2020-21 Assessment Year 2021-22

Due dates for TDS payment for Financial Year 2020-21 and Assessment Year 2021-22

Due dates for TDS quarterly Returns for Financial Year 2020-21 and Assessment Year 2021-22

Interest on late payment and Late deduction of TDS:

Interest on late payment of TDS: Changes made as per Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020 dated 24th March 2020:

Fees for default in filing of TDS/ TCS return:

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