Tax Deducted at Source (TDS) Rates for FY 2020-21

Section

Resid-ential Status of De ductee ^#8

Nature of   Payment

Monetary Limit

Rate (01/04/ 2020 to 13/05/ 2020)

Rate (14/05/ 2020 – 31/03/2021 ) ^#7

Remarks (Changes made by Finance Act, 2020)

192

R/NR

Salaries

–

Normal Slab Rate

Normal Slab Rate

#1, #2

192-A

R/NR

Premature withdrawal from Employee Provident Fund

50,000

10%

7.5%

–

193

R

Interest on securities

10,000

10%

7.5%

–

194

R

Dividend other than the dividend as referred to in Section 115-O (i.e. Dividend on which Dividend Distribution Tax is not paid)

5,000

10%

7.5%

Limit has been increased to 5,000

194-A

R

Interest other than interest on securities- Others

5,000

10%

7.5%

#3

R

Banks (Time deposits / Recurring deposits)

40,000 (For individual) & 50,000 (for Senior Citizens)

10%

7.5%

–

R

Deposit in Co-operative Bank & Post offices

R

Interest by Co-operative Society (other than Co-operative Bank)

40,000 (For individual) & 50,000 (for Senior Citizens)

10%

7.5%

#5

194-B

R/NR

Winning from Lotteries

10,000

30%

30%

–

194-BB

R/NR

Winnings from Horse Race

10,000

30%

30%

–

194-C

R

Payment to Contractor

30,000 ( Single Txn) 1,00,000 (Aggregate During the Financial year)

For Individual & HUF- 1% &  for Others- 2%

For Individual & HUF – 0.75% &  for Others – 1.5%

#3, #6

R

Payment to Transporter covered u/s 44AE & submit declaration (i.e. owning less than 10 goods carriages)

194-D

R

Insurance Commission

15,000

Domestic Company – 10%

Other Resident – 5%

Domestic Company – 7.5%

Other Resident – 3.75%

–

194-DA

R

Payment in respect of life insurance policy w.e.f. 01/09/2019, the tax shall be deducted on the amount of income comprised in insurance pay-out. Note- Before 01/09/2019 Rate was 1% on maturity Amount.

1,00,000

5%

3.75%

–

194-E

NR

Non resident Sports person or association

                   –

20%

20%

194-EE

R/NR

Payments out of deposits under National Savings Scheme

2500

10%

7.50%

–

194-F

R/NR

Repurchase Units by Mutual Funds

–

20%

15%

–

194-G

R/NR

Commission – Lottery

15,000

5%

3.75%

–

194-H

R

Commission / Brokerage ( No TDS on brokerage on public issues, stock exchange transactions & commission to underwriters)

15,000

5%

3.75%

#3

194-I

R

Rent – Land and Building – furniture & fittings (if property is owned by more than one person then limit of 2,40,000 will be applied to each co-owner)

2,40,000

10%

7.50%

#3

R

Rent – Plant / Machinery / equipment

2%

1.50%

–

194-IA

R

Transfer of certain immovable property other than agriculture land

50,00,000

1%

0.75%

–

194-IB

R

Rent – Land or building or both (By Individual / HUF not liable to Tax audit)

50,000 Pm or part of the month

5%

3.75%

#4

194-IC

R

Payment of Monetary consideration under Joint development agreement

–

10%

7.50%

–

194-J

R

Payment to Calls Centres

30,000

2%

1.50%

#3

R

Technical Services Payment (other than Professional Services)

30,000

2%

1.50%

Reduction in TDS rates

R

Royalty for sale, distribution or exhibition of cinemato-graphic films

30,000

2%

1.50%

Reduction in TDS rates

R

Professional Fees and Royalty-Others

30,000

10%

7.50%

–

194-K

R

Payment of any income (other than in nature of Capital Gains) in respect of Units of Mutual fund as per section 10(23D) or Units of administrator or from a specified company.

5000

10%

7.50%

Newly Intro-duced

194-LA

R

TDS on compensation for compulsory acquisition of immovable Property

2,50,000

10%

7.50%

–

194- LBA

R/NR

Business trust shall deduct tax while distributing, any interest received or receivable by it from a SPV to its unit holders. (if the SPV has exercised the option under section 115BAA)

–

Resident- 10%

Non Resident- 5%

Resident- 7.5%

Non Resident – 5%

–

R/NR

Business trust shall deduct tax while distributing dividend to its unit holders.

–

Resident- 10%

Non Resident- 5%

Resident- 7.5%

Non Resident- 5%

Newly Introduced

R/NR

Business trust shall deduct tax while distributing any income received from renting or leasing or letting out any real estate asset owned directly by it, to its unit holders.

–

Resident- 10%

Non Resident- 30*

Resident- 7.5%

Non Resident- 30*

–

194- LB

NR

Income by way of interest from infrastructure debt fund (payable to non-resident)

–

5%

5%

–

194-LBB

R/NR

Income in respect of units of Investment funds

–

Resident- 10%

Non Resident- 30*

Resident- 7.5%

Non Resident- 30*

–

194-LBC

R/NR

Income in respect of investment in securitisation trust

–

For Individual / HUF-25%, Others- 30%

NR-30*

For Individual / HUF -18.75%, Others- 22.5%,

NR-30*

–

194-LC

NR

Income by way of interest by an Indian specified company to a non-resident / foreign company on foreign currency approved loan   (Note : Now TDS at concessional rate of 5% will be applicable for borrowings made after April 1, 2020 but before July 1, 2023.)

–

5%

5%

–

NR

Income by way of interest by an Indian specified company to a non-resident / foreign company on foreign currency approved long term infrastructure bonds/Rupee deninominated bond from outside India ( Note : Now TDS at concessional rate of 5% will be applicable for borrowings made after April 1, 2020 but before July 1, 2023.)

–

5%

5%

–

NR

Income by way of interest by listed IFSC to a non-resident / foreign company on long term infrastructure bonds/Rupee denominated bonds from outside India   ( Note : Now TDS at concessional rate of 5% will be applicable for borrowings made after April 1, 2020 but before July 1, 2023.)

–

4%

4%

–

194- LD

NR

Income by way of Interest on a rupee denominated bond of an Indian company and Govt. Securities to FII or QFI (Note : Now TDS at concessional rate of 5% will be applicable for borrowings made after April 1, 2020 but before July 1, 2023)

–

5%

5%

–

NR

Income by way of Interest on Municipal debt securities to FII or QFI (Note : for borrowings made after April 1, 2020 but before July 1, 2023)

–

5%

5%

Newly Intro-duced

194-M

R

Payment of Commission, brokerage, contractual fee, professional fee to a resident person by an Individual or a HUF who are not liable to deduct TDS under section 194C, 194H, or 194J. Note: Sec. 194M will be effective from 01/09/2019 onwards

50,00,000

5%

3.75%

#4

194-N

R/NR

Cash withdrawal in excess of Rs. 1 crore during P.Y-

A) Filed the returns of income for all of the three A.Y relevant to the three P.Y and cash withdrawals exceeding 1 cr.

1,00,00,000

2%

2%

–

R/NR

B) Not Filed the returns of income for all of the three A.Y relevant to the three P.Y: (This provision is applicable w.e.f. 01/07/2020)

i. Cash withdrawals from 20 Lacs to 1 Crore

20 lacs to 1 Cr

2%

2%

Newly Introduced

R/NR

ii. Cash withdrawals exceeding 1 Crore

> 1Cr

2% till 30/06/ 2020 &

5% from 01/07/ 2020

2% till 30/06/ 2020 &

5% from 01/07/ 2020

Newly Introduced

194-O

R/NR

Applicable for Ecommerce operator for sale of goods or provision of service facilitated by it through its digital or electronic facility or platform. ( Note: This Sec. is inserted by FA 2020 & applicable from 01/10/2020)

500000 (for Individual and HUF on furnishing PAN/Aadhaar)

1%   (in case PAN or Aadhaar not produce by E-Commerce then- 5%)

0.75% (in case PAN or Aadhaar not produce by E-Commerce then- 5%)

Newly Introduced

195

NR

Other Payments to Non-Resident / Foreign Company

–

DTAA Rate or Rate in Force

DTAA Rate or Rate in Force

–

NR

(a) Income from investment made by a Non-Resident Indian Citizen

–

20%*

20%*

–

NR

(b) LTCG referred to in Section 115E

–

10%*

10%*

–

NR

(c) LTCG referred to in Section 112(1)(c)(iii)

–

10%*

10%*

–

NR

(d) LTCG referred to in Section 112A

–

10%*

10%*

–

NR

(e) STCG under Section 111A

–

15%*

15%*

–

NR

(f) Any other LTCG [not covered by Section 10(33), 10(36) and 10(38)]

–

20%*

20%*

–

NR

(g) Interest Income on moneys borrowed or debt incurred in foreign currency (not being interest referred to in Sec. 194LB or 194LC or 194LD)

–

20%*

20%*

–

NR

(h) Royalty for transfer of rights in respect of copyright in any book or computer software referred to in Section 115A(1A).

–

10%*

10%*

–

NR

(i) Royalty [not of the nature referred to in (g) above] payable in pursuance of an agreement approved by the Central Govt. / it is in accordance with industrial policy.

–

10%*

10%*

–

NR

(j) Fees for technical services payable in pursuance of an agreement approved by the Central Govt. / it is in accordance with industrial policy.

–

10%*

10%*

–

NR

(k) Any other income

–

30%*

30%*

–

196-B

R/NR

Income from units

–

10%

10%

–

196-C

R/NR

Income from foreign currency bonds or GDR (including long-term capital gains on transfer of such bonds) (not being dividend)

–

10%

10%

–

196-D

R/NR

Income of FIIs from securities

–

20%

20%

–