TDS RATE CHART FOR FY 2020-21 (AY 2021-22)
Table of Contents
TDS (TAX DEDUCTED AT SOURCES)
Tax Deducted at Source (‘TDS’) is form of direct taxation. TDS aims to collect tax at source of income. This act as check mechanism for person getting income to disclose income and corresponding tax. TDS Rate Chart for FY 2020-21. Also next year TDS Rate chart for FY 2021-22
The receipt of income is liable to tax on the gross amount even though he gets the net amount after deducting TDS. The amount deducted at sources is adjustable against final tax liability.
Key contents
- TDS RATE CHART WHERE RECEIPENT IS RESIDENT
- TDS RATE CHART WHERE RECEIPENT IS NON-RESIDENT INDIAN (NRI’s)
COVID TDS RATE RELIEF U/S 197B OF INCOME TAX ACT
There is a relief provided by reducing the rate of TDS during the period from 14.05.2020 to 31.03.2021 to resident taxpayers. Relief is 25% reduction in base rate for resident taxpayer on both TDS and TCS.
There is no reduction in TDS rate on Salaried payments. Salary payment is deducted at prescribed rate on salary payment.
TDS RATE CHART WHERE RECEIPENT IS RESIDENT
| Section | Nature of Payment | Normal Rate (%) | From 01.04.20 to 13.05.20 (%) |
From 14.05.20 to 31.03.21 (%) |
|---|---|---|---|---|
| 192 | Payment of Salary | Normal Slab Rate | Normal Slab Rate | Normal slab rate |
| 192A | Premature withdrawal from EPF | 10 | 10 | 10 |
| 193 | Interest on securities. a) any debentures or securities for money issued by or on behalf of any Local Authority / Statutory Corporation b) any listed debentures issued by a company (not being listed securities in demat form); c) any securities of Central or State Government d) any other interest on securities (including interest on unlisted debentures) | 10 | 10 | 7.5 |
| 194 | Dividends included deemed dividend u/s 2(22)€ | 10 | 10 | 7.5 |
| 194A | Interest (Banking companies, co-operative society engaged in banking activity, post office) | 10 | 10 | 7.5 |
| 194A | Interest (any other person) | 10 | 10 | 7.5 |
| 194B | Winning from lotteries | 30 | 30 | 30 |
| 194BB | Winning from Horse race | 30 | 30 | 30 |
| 194C | Payment to resident contractor / sub-contractor > Individual/HUF > Others (other than individual / HUF) |
1 2 |
1 2 |
0.75 1.50 |
| 194D | Insurance commission > Other than Domestic Company > Domestic Company |
5 10 |
5 10 |
3.75 10.00 |
| 194DA | Payment in respect of Life Insurance Policy (when no exemption available) | 5 | 5 | 3.75 |
| 194EE | Deposits under NSS (National Saving Scheme) | 10 | 10 | 7.5 |
| 194F | Repurchase units by MFs or UTI | 20 | 20 | 15 |
| 194G | Commission on sale of Lottery tickets | 5 | 5 | 3.75 |
| 194H | Commission or Brokerage | 5 | 5 | 3.75 |
| 194I | > Rent of Plant / Machinery / Equipment > Rent on Land and Building / Furniture & Fixture |
2 10 |
2 10 |
1.50 7.50 |
| 194IA | Transfer of certain immovable property other than rural agriculture land | 1 | 1 | 0.75 |
| 194IB | Rent by Individual / HUF (not liable to tax audit) | 5 | 5 | 3.75 |
| 194IC | Payment under Joint Development Agreements to resident Individual/HUF | 10 | 10 | 7.5 |
| 194J | Professional Fees | 10 | 10 | 7.5 |
| 194J | Director’s fees | 10 | 10 | 7.5 |
| 194J | Fees for Technical Service (w.e.f. 01.04.2020) | 2 | 2 | 1.5 |
| 194J | Payment to call centre operator (w.e.f. 01.06.2017) | 2 | 2 | 1.5 |
| 194J | Royalty as consideration for sale, distribution or exhibition of cinematographic films | 2 | 2 | 1.5 |
| 194K | Payment of any income in respect of units of a mutual fund as per section 10(23D) / the units from the administrator / units from specified company | 10 | 10 | 7.5 |
| 194LA | Payment of compensation on acquisition certain immovable property other than agriculture land | 10 | 10 | 7.5 |
| 194LBA(1) | Payment in nature referred to in section 10(23FC) or Section 10(23FCA) by business trust to resident unit holders | 10 | 10 | 7.5 |
| 194LBB | Income in respect of units of investment fund specified in section 115UB | 10 | 10 | 7.5 |
| 194LBC | Income in respect of investment in securitization fund > Individual/HUF > Domestic Company > Any other persons |
25 30 30 |
25 30 30 |
18.75 22.50 22.50 |
| 194M | Payment by Individual/ HUF to resident contractor or professional or commission or brokerage (not falling in 194C / 194H / 194J) | 5 | 5 | 3.75 |
| 194N | Payment of certain amount in cash | 2 | 2 | 2 |
| 194N | Payment of certain amount in cash (first proviso of section 194N) if > Amount is more than Rs.20 lakh but up to Rs. 1 crore > Amount exceeds Rs. 1 crore (Applicable from 01.07.2020) |
2 5 |
2 5 |
2 5 |
| 194-O | Applicable for e-commerce operator for the sale of goods or provision of services facilitated by it through its digital or electronic facility or platform (Applicable from 1st October 2020) | 1 | N.A. | 0.75 |
Notes – TDS Rate Chart for FY 2020-21
- TDS on salary will on Normal Income Tax Slab Rate . It will include Surcharges (‘SC’)as per applicable tax slab and higher education cess (‘HEC’) of 4% on income tax plus surcharge.
- No Surcharge and Higher Education Cess applicable on other than salary TDS rate. TDS Rate Chart for FY 2020-21
TDS RATE CHART WHERE RECEIPENT IS NON-RESIDENT INDIAN (NRI’s)
| Section | Nature of payment | Normal Rate (%) | From 01.04.20 to 13.05.20 (%) | From 14.05.20 to 31.03.21 (%) |
| 192 | Payment of Salary | Normal Slab Rate | Normal Slab Rate | Normal Slab Rate |
| 192A | Premature withdrawal from EPF | 10.00 | 10.00 | 10.00 |
| 194B | Winning from lotteries | 30.00 | 30.00 | 30.00 |
| 194BB | Winning from Horse race | 30.00 | 30.00 | 30.00 |
| 194E | Payment to non-resident sportsmen/sports association | 20.00 | 20.00 | 20.00 |
| 194EE | Deposits under NSS (National Saving Scheme) | 10.00 | 10.00 | 10.00 |
| 194F | Repurchase units by MFs or UTI | 20.00 | 20.00 | 20.00 |
| 194G | Commission on sale of Lottery tickets | 5.00 | 5.00 | 3.75 |
| 194LB | Payment of interest on infrastructure debt fund | 5.00 | 5.00 | 5.00 |
| 194LBA(2) | Payment by business trust to unit holders of the nature referred to in > section 10(23FC)(a) > section 10(23FC)(b) |
5 10 |
5 10 |
5 10 |
| 194LBA(3) | Payment of the nature referred to in Section 10(23FCA) by business trust to unit holders | 30.00 | 30.00 | 30.00 |
| 194LBB | Income in respect of units of investment fund specified in section 115UB | 10.00 | 10.00 | 7.50 |
| 194LBC(2) | Income in respect of investment in securitization trust specified in clause (d) of the explanation occuring after section 115TCA | 30.00 | 30.00 | 30.00 |
| 194LC | Payment of interest by an Indian specified company or a business trust on > foreign currency approved loan / long-term bonds outside India > Long term bond / rupee denominated bond listd in recognized stock exchange located in any International Financial Services Centre |
5 4 |
5 4 |
5 4 |
| 194LD | Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor | 5.00 | 5.00 | 5.00 |
| 194N | Payment of certain amount in cash | 2.00 | 2.00 | 2.00 |
| 194N | Payment of certain amount in cash (first proviso of section 194N) if > Amount is more than Rs.20 lakh but up to Rs. 1 crore > Amount exceeds Rs. 1 crore (Applicable from 01.07.2020) |
2 5 |
2 5 |
2 5 |
| 195 | Income of Investment made by an NRI | 20.00 | 20.00 | 20.00 |
| 195 | Long-term capital gain – Under Section – 115E/ 112(1)(c)(iii)/ 112A – Any Other Gains |
10.00 | 10.00 | 10.00 |
| 195 | Short-term capital gain – 111A | 15.00 | 15.00 | 15.00 |
| 195 | any other long term capital asset (not covered u/s 10(33), 10(36), 112A) | 20.00 | 20.00 | 20.00 |
| 195 | income by way of dividend | 20.00 | 20.00 | 20.00 |
| 195 | Royalty | 10.00 | 10.00 | 10.00 |
| 195 | Fees for technical services | 10.00 | 10.00 | 10.00 |
| 195 | Interest income payable by Govt./Indian concern (other than section 194LB or 194LC) | 20.00 | 20.00 | 20.00 |
| 195 | Any Other Income – Other than Company Company |
30.00 | 30.00 | 30.00 |
| 196A | Income in respect of units of a non-resident / foreign company | 20.00 | 20.00 | 20.00 |
| 196B | Payment or credit of income from units (including long term capital gains on transfer of such units) to an offshore fund | 10.00 | 10.00 | 10.00 |
| 196C | Income from foreign currency bonds or GDR of an Indian company | 10.00 | 10.00 | 10.00 |
| 196D | Income of foreign Institutional Investors from securities (not being dividend or capital gain) | 20.00 | 20.00 | 20.00 |
Notes
- Under Sections 194LBA, 194LBB, 194LBC, and 195, tax is deductible at the above rates or the rates specified in ADT agreement
- If any assessee makes a declaration in Form 15G / 15H, the no TDS will be deducted u/s 192A, 193, 194, 194A, 194D, 194DA, 194I, 194EE. TDS Rate Chart for FY 2020-21
Lower deduction in certain cases for a limited period u/s 197B of IT Act
The relevant provision of section 197B of the Income Tax Act has been reproduced below:
In case the provisions of sections 193, 194, 194A, 194C, 194D, 194DA, 194EE, 194F, 194G, 194H, 194-I, 194-IA, 194-IB, 194-IC, 194J, 194K, 194LA, sub-section (1) of section 194LBA, clause (i) of section 194LBB, sub-section (1) of section 194LBC, sections 194M and 194-O require deduction of tax at source during the period commencing from the 14th day of May, 2020 to the 31st day of March, 2021, then notwithstanding anything contained in these sections the deduction of tax shall be made at the rate being the three-fourth of the rate specified in these sections.
Section 206C(10A) for lower deduction of tax
The relevant provision of section 206C(10A) of the Income Tax Act has been reproduced below:
In case the provisions of sub-section (1) [except the goods referred at serial number (i) in the TABLE], (1C), (1F) or (1H) require collection of tax at source during the period commencing from the 14th day of May 2020 to the 31st day of March, 2021, then, notwithstanding anything contained in these sub-sections the collection of tax shall be made at the rate being the three-fourth of the rate specified in these sub-sections. TDS Rate Chart for FY 2020-21.
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