# TDS (Tax Deduction at Source) and TCS (Tax Collected at Source) will be reduced by 25% \[COVID-19 Special Economic Package\]

**URL:** https://community.greythr.com/t/tds-tax-deduction-at-source-and-tcs-tax-collected-at-source-will-be-reduced-by-25-covid-19-special-economic-package/184
**Category:** Income Tax
**Created:** [May 14, 2020, 3:49am UTC](https://community.greythr.com/t/tds-tax-deduction-at-source-and-tcs-tax-collected-at-source-will-be-reduced-by-25-covid-19-special-economic-package/184 "2020-05-14T03:49:22Z")
**Posts on this page:** 1
**Page:** 1

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### Author: ![Vidyaranjan](https://avatars.discourse-cdn.com/v4/letter/v/858c86/32.png) [@Vidyaranjan](https://community.greythr.com/u/Vidyaranjan)
#### Post date: [May 14, 2020, 3:49am UTC](https://community.greythr.com/t/tds-tax-deduction-at-source-and-tcs-tax-collected-at-source-will-be-reduced-by-25-covid-19-special-economic-package/184/1 "2020-05-14T03:49:22Z")

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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 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 today to 31st March, 2021**.

Period of Vivad se Vishwas Scheme for making payment without additional amount  
will be extended to 31st December,2020

Content Source- [https://pib.gov.in/PressReleasePage.aspx?PRID=1623585](https://pib.gov.in/PressReleasePage.aspx?PRID=1623585)