- 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.
- Payment for the contract, professional fees, interest, rent, dividend, commission, brokerage, etc shall be eligible for this reduced rate of TDS.
- This reduction shall be applicable for the remaining part of the FY 2020 21 i e from tomorrow to 31 st March, 2021
This measure will release Liquidity of Rs 50 000 crore
This is a great measure and ensures liquidity in the hands of businessman and they can now utilise this in an effective manner