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Home >> Blog >> Key Points in Atmanirbhar Bharat Abhiyan For FY 2020-2021
(Applicable from 14th May 2020)
Key Points in Atmanirbhar Bharat Abhiyan For FY 2020-2021
(Applicable from 14th May 2020)
Our Prime Minister has announced a Special economic and comprehensive package of Rs 20 lakh crores which is equivalent to 10% of India’s GDP under Atmanirbhar Bharat Abhiyan or Self Reliant India Movement. This package is for various sections including cottage industry, MSMEs, labourers, middle class, industries & others. Bold reforms across sectors will drive the country’s push towards self-reliance & it is time to become vocal for our local products and make them global.
Key points which are related to Individuals and Salary class Taxpayers from above Package are:-
- Five crore workers registered under Employee Provident Fund (EPF) to get non- refundable advance of 75% of the amount or three months of the Salary, whichever is lower, from their
- To provide more take home Salary to employees and also to give relief to employers in payment of Provident Fund Dues the Statutory PF Contribution of both employer and employee will be reduced to 10% each from existing 12% each for all establishments covered by EPFO for next 3
This scheme will be applicable for workers who are not eligible for 24% EPF support under PM Garib Kalyan Package and its extension. Central Public Sector Enterprises and State PSUs will however continue to contribute 12% as employer contribution.
- Issued all the pending Income-Tax Refunds up to ₹5 lakh, immediately benefiting around 14 lakh taxpayers. (In our next blog we will explain this point in detail).
- Relaxation for 3 months for debit cardholders to Withdraw Cash free from any ATMs,
- Due date of all Income-Tax Return for FY 2019-20 will be extended from 31st July, 2020 & 31st October, 2020 to 30th November, 2020 and Tax audit from 30th September, 2020 to 31st October,2020.
- Date of Assessments Getting Barred on 30th September,2020 extended to 31st December,2020 and those getting barred on 31st March,2021 will be extended to 30th September,2021.
- Period of Vivad se Vishwas Scheme for making payment without additional amount will be extended to 31st December,2020.
- The last date for filing GST Returns for March, April, May & Composition Returns has been extended to 30th June 2020. Companies which have Less than Rs 5 crore Turnover will not have to pay interest, late fee or penalty. For Bigger companies late fee and penalty will not apply and only interest at a reduced rate of 9% will be charged. The date for Opting for Composition Scheme has also been extended to 30th June, 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, the 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.
- 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 contract, professional fees, interest, rent, dividend, commission, brokerage, sale of immovable property 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 14TH MAY 2020 to 31st March, 2021. As per the New Directives reduced rates are as below:-
TDS Rate Chart for FY 2020-21 Pre & Post 14th May 2020
S. No | Section of the Income-tax Act | Nature of Payment | Existing Rate of TDS | Reduced rate from 14/05/2020 to 31/03/2021 |
| 1 | 193 | Interest on Securities | 10% | 7.5% |
| 2 | 194 | Dividend | 10% | 7.5% |
| 3 | 194A | Interest other than interest on securities | 10% | 7.5% |
| 4 | 194C | Payment of Contractors and sub-contractors | 1% (individual/HUF) 2% (others) | 0.75% (individual/HUF) 1.5% (others) |
| 5 | 194D | Insurance Commission | 5% | 3.75% |
| 6 | 194DA | Payment in respect of life insurance policy | 5% | 3.75% |
| 7 | 194EE | Payments in respect of deposits under National Savings Scheme | 10% | 7.5% |
| 8 | 194F | Payments on account of re-purchase of Units by Mutual Funds or UTI | 20% | 15% |
| 9 | 194G | Commission, prize etc., on sale of lottery tickets | 5% | 3.75% |
| 10 | 194H | Commission or Brokerage | 5% | 3.75% |
| 11 | 194-I(a) | Rent for plant and machinery | 2% | 1.5% |
| 12 | 194-I(b) | Rent for immovable property | 10% | 7.5% |
| 13 | 194-IA | Payment for acquisition of immovable property | 1% | 0.75% |
| 14 | 194-IB | Payment of rent by individual or HUF | 5% | 3.75% |
| 15 | 194-IC | Payment for Joint Development Agreements | 10% | 7.5% |
| 16 | 194J | Fee for Professional or Technical Services (FTS), Royalty, etc. | 2% (FTS, certain royalties, call centre) 10% (others) | 1.5% (FTS, certain royalties, call centre) 7.5% (others) |
| 17 | 194K | Payment of dividend by Mutual Funds | 10% | 7.5% |
| 18 | 194LA | Payment of Compensation on acquisition of immovable property | 10% | 7.5% |
| 19 | 194LBA(1) | Payment of income by Business trust | 10% | 7.5% |
| 20 | 194LBB(i) | Payment of income by Investment fund | 10% | 7.5% |
| 21 | 194LBC(1) | Income by securitisation trust | 25% (Individual/HUF) 30% (Others) | 18.75% (Individual/HUF) 22.5% (Others) |
| 22 | 194M | Payment to commission, brokerage etc. by Individual and HUF | 5% | 3.75% |
| 23 | 194-O | TDS on e-commerce participants | 1% (w.e.f. 1.10.2020) | 0.75% |
TCS Rate Chart for FY 2020-21 Pre & Post 14th May 2020
S. No | Section of the Income-tax Act | Nature of Receipts | Existing Rate of TCS | Reduced rate from 14/05/2020 to 31/03/2021 |
| 1 | 206C(1) | Sale of | ||
| (a) Tendu Leaves | 5% | 3.75% | ||
| (b)Timber obtained under a forest lease | 2.5% | 1.875% | ||
| (c) timber obtained by any other mode | 2.5% | 1.875% | ||
(d) Any other forest produce not being timber/tendu leaves | 2.5% | 1.875% | ||
| (e) scrap | 1% | 0.75% | ||
| (f) Minerals, being coal or lignite or iron ore | 1% | 0.75% | ||
| 2 | 206C(1C) | Grant of license, lease, etc. of (a) Parking lot | 2% | 1.5% |
| (b) Toll Plaza | 2% | 1.5% | ||
| (c) Mining and quarrying | 2% | 1.5% | ||
| 3 | 206C(1F) | Sale of motor vehicle above 10 lakhs | 1% | 0.75% |
| 4 | 206C(1H) | Sale of any other goods | 0.1% (w.e.f 01.10.2020) | 0.075% |
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The information provided under this website is solely available at your request for informational purposes only, should not be interpreted as soliciting or advisement. We are not liable for any consequence of any action taken by the user relying on material/information provided under this website. In cases where the user has any legal issues, he/she in all cases must seek independent legal advice
