New Turnover Threshold for the Purposes of Tax deducted at Source (TDS) Applicability as per the Finance Act 2020.
TDS was applicable to individuals and to HUF if their accounts were subject to audit in Section 44AB of the preceding year. The Finance Act 2020 specifies that All individuals & HUF will be liable to deduct TDS if the revenue exceeds Rs. 1 Crore in the case of corporation and Rs. 50 Lakhs in the case of the profession in the previous year. Such revisions shall take effect from 1 April 2020.
Below is the TDS average for the year 2020-21. In the following table valid from 14th May 2020
o Individuals include the individual and HUF
o Company and others include Company, Company, LLP, Co-op Society, Local Authority.
Interest in delayed 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 the balance of TDS deductible from the date of tax before the date of tax finally deducted shall be paid for late deduction.
In addition, interest for late payment at a rate of 1.5 per cent per month or half of the month on the amount of TDS withheld from the date of tax to the day on which the tax is collected shall be levied.
Profit in late payment of TDS: amendments made pursuant to the Taxes and Other Laws (Relaxation of Other Provisions) Order 2020 of 24 March 2020:
For late fees payable on self-assessment tax ; advanced tax, income tax, TDS, TCS, equalization cessation, STT, CTT made between 20 March 2020 to 30 June 2020, the interest rate will be decreased by 9% instead of 12%/18% per year (i.e. 0.75% per month instead of 1/1.5% per month). No late fee/penalty shall be paid for any delay in respect of that time.
Default fees for the TDS / TCS return file:
Fees are payable at Rs. 200 a day for each day on which the loss continues. The amount of the fees can not exceed the value of the TDS.