TCS Rates due to COVID
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TCS rates effective from 14-05-2020 till 31-03-2021
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Nature of Receipts |
Section of the Income-tax Act |
Existing Rate of TCS |
Reduced rate from 14/05/2020 to 31/03/2021 |
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Sale of Tendu Leaves |
206C(1) |
5% |
3.75% |
|
Sale of Timber obtained under a forest lease |
206C(1) |
2.5% |
1.88% |
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Sale of timber obtained by any other mode |
206C(1) |
2.5% |
1.88% |
|
Sale of Any other forest produce not being timber/tendu
leaves |
206C(1) |
2.5% |
1.88% |
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Sale of scrap |
206C(1) |
1% |
0.75% |
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Sale of Minerals, being coal or lignite or iron ore |
206C(1) |
1% |
0.75% |
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Grant of license, lease, etc. of Parking lot |
206C(1) |
2% |
1.5% |
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Grant of license, lease, etc. of Toll Plaza |
206C(1) |
2% |
1.5% |
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Grant of license, lease, etc. of Mining and quarrying |
206C(1) |
2% |
1.5% |
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Sale of motor vehicle above 10 lakhs |
206C(1F) |
1% |
0.75% |
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Sale of any other goods |
206C(1H) |
0.1% (w.e.f 01.10.2020) |
0.75% |
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Points to note |
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1. |
A Ministry of Finance note stated, "There shall be
no reduction in rates of TDS or TCS where the tax is required to be deducted
and collected at higher rates due to non-furnishing of PAN/Aadhaar. For
example, if the tax is required to be deducted at 20 per cent under section
206AA if the Income-tax Act due to non-furnishing of PAN/Aadhaar, it shall be
deducted at the rate of 20 per cent and not rate of 15 per cent." |
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2. |
One should remember that these new rates are effective
for only the current financial year. Therefore, from April 1, 2021, the old
TDS rates will be applicable. |
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3. |
The reduced TDS rates will lead to higher
self-assessment tax later. |
