TDS rates for FY 2021-22 (AY 2022-21) considering amendments made by Finance Act, 2021 are as follows:
Tax Deducted at Source (TDS) Rates applicable from 1st April, 2021
Tax Deducted at Source (TDS) Rates applicable from 1st April, 2021 |
|||||||
S. No |
Section |
Residential Status of Deductee #9 |
206AB applicable #11 |
Nature of Payment |
Monetary Limit |
Rate |
Remarks (Changes made by Finance Act, 2021) |
1 |
192 |
R/NR |
NO |
Salaries |
– |
Normal Slab Rate (Old or New) |
#1, #2 |
2 |
192-A |
R/NR |
NO |
Premature withdrawal from Employee Provident Fund |
50,000 |
10% |
– |
3 |
193 |
R |
Y |
Interest on securities |
10,000 |
10% |
– |
4 |
194 |
R |
Y |
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% |
#3 |
5 |
194-A |
R |
Y |
Interest other than interest on securities- Others |
5,000 |
10% |
#4, #6 |
R |
Y |
Banks (Time deposits / Recurring deposits) |
40,000 (For individual) & 50,000 (for Senior Citizens) |
10% |
– |
||
R |
Y |
Deposit in Co-operative Bank & Post offices |
|||||
R |
Y |
Interest by Co-operative Society (other than Co-operative Bank) having Total Sales / Gross Receipts / Turnover exceeds Rs. 50 crores in immediately preceding financial year. |
40,000 (For individual) & 50,000 (for Senior Citizens) |
10% |
– |
||
6 |
194-B |
R/NR |
NO |
Winning from Lotteries |
10,000 |
30% |
– |
7 |
194-BB |
R/NR |
NO |
Winnings from Horse Race |
10,000 |
30% |
– |
8 |
194-C |
R |
Y |
Payment to Contractor |
30,000
|
For Individual & HUF- 1% & for Others- 2% |
#6 |
R |
Y |
Payment to Transporter covered u/s 44AE & submit declaration (i.e. owning less than 10 goods carriages) |
|||||
9 |
194-D |
R |
Y |
Insurance Commission |
15,000 |
Domestic Company – 10%
|
– |
10 |
194-DA |
R |
Y |
Payment in respect of life insurance policy the tax shall be deducted on the amount of income comprised in insurance pay-out. |
1,00,000 |
5% |
– |
11 |
194-E |
NR |
YES |
Non resident Sports person or association |
– |
20% |
|
12 |
194-EE |
R/NR |
Y |
Payments out of deposits under National Savings Scheme |
2500 |
10% |
– |
13 |
194-F |
R/NR |
Y |
Repurchase Units by Mutual Funds |
– |
20% |
– |
14 |
194-G |
R/NR |
Y |
Commission – Lottery |
15,000 |
5% |
– |
15 |
194-H |
R |
Y |
Commission / Brokerage ( No TDS on brokerage on public issues, stock exchange transactions & commission to under-writers) |
15,000 |
5% |
#6 |
16 |
194-I |
R |
Y |
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% |
#6 |
R |
Y |
Rent – Plant / Machinery / equipment |
2% |
#6 |
|||
17 |
194-IA |
R |
Y |
Transfer of certain immovable property other than agriculture land |
50,00,000 |
1% |
– |
18 |
194-IB |
R |
Y |
Rent – Land or building or both (By Individual / HUF not liable to Tax audit) |
50,000 Pm or part of the month |
5% |
#7 |
19 |
194-IC |
R |
Y |
Payment of Monetary consideration under Joint development agreement |
– |
10% |
– |
20 |
194-J |
R |
Y |
Payment to Calls Centres |
30,000 |
2.00% |
#6 |
R |
Y |
Technical Services Payment (other than Professional Services) |
30,000 |
2.00% |
#6 |
||
R |
Y |
Royalty for sale, distribution or exhibition of cinemato-graphic films |
30,000 |
2.00% |
#6 |
||
R |
Y |
Professional Fees and Royalty-Others |
30,000 |
10% |
#6 |
||
21 |
194-K |
R |
Y |
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% |
– |
22 |
194-LA |
R |
Y |
TDS on compensation for compulsory acquisition of immovable Property |
2,50,000 |
10% |
– |
23 |
194- LBA |
R/NR |
Y |
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) |
– |
R – 10%
|
– |
R/NR |
Y |
Business trust shall deduct tax while distributing dividend to its unit holders. |
– |
R – 10%
|
– |
||
R/NR |
Y |
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. |
– |
R – 10%
|
– |
||
24 |
194- LB |
NR |
YES |
Income by way of interest from infrastructure debt fund (payable to non-resident) |
– |
5% |
– |
25 |
194-LBB |
R/NR |
Y |
Income in respect of units of Investment funds |
– |
R – 10%
|
– |
26 |
194-LBC |
R/NR |
NO |
Income in respect of investment in securitisation trust |
– |
For Individual / HUF-25%, Others- 30%
|
– |
27 |
194-LC |
NR |
YES |
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% |
– |
NR |
YES |
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 denominated 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% |
– |
||
NR |
YES |
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.) |
– |
5% |
– |
||
28 |
194-LD |
NR |
YES |
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% |
– |
NR |
YES |
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% |
– |
||
29 |
194-M |
R |
Y |
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 |
50,00,000 |
5% |
#7 |
30 |
194-N |
R/NR |
NO |
Cash withdrawal in excess of Rs. 1 crore during P.Y-
|
1,00,00,000 |
2% |
– |
R/NR |
NO |
B) Not Filed the returns of income for all of the three A.Y relevant to the three P.Y:
|
20 lacs to 1 Cr |
2% |
– |
||
R/NR |
NO |
ii. Cash withdrawals exceeding 1 Crore |
> 1Cr |
5% |
– |
||
31 |
194-O |
R/NR |
Y |
Applicable for E-commerce operator for sale of goods or provision of service facilitated by it through its digital or electronic facility or platform. |
500000 (for Individual and HUF on furnishing PAN/ Aadhaar) |
1% (in case PAN or Aadhaar not produce by E-Commerce then– 5%) |
– |
32 |
194-P |
R |
Y |
Specified Banks making payment to Specified Senior Citizens (Age >=75 years, having Pension income and income from interest only in same specified bank in which pension received) |
– |
Normal Slab Rate |
Newly Introduced |
33 |
194-Q |
R |
Y |
Purchase of goods (applicable w.e.f 01.07.2021) |
50 lakh |
0.1% of amount exceeding Rs. 50 lakhs |
Newly Introduced
|
34 |
195 |
NR |
YES |
Other Payments to Non-Resident / Foreign Company |
– |
DTAA Rate or Rate in Force |
– |
NR |
YES |
(a) Income from investment made by a Non-Resident Indian Citizen |
– |
20% |
– |
||
NR |
YES |
(b) LTCG referred to in Section 115E |
– |
10% |
– |
||
NR |
YES |
(c) LTCG referred to in Section 112(1)(c)(iii) |
– |
10% |
– |
||
NR |
YES |
(d) LTCG referred to in Section 112A |
– |
10% |
– |
||
NR |
YES |
(e) STCG under Section 111A |
– |
15% |
– |
||
NR |
YES |
(f) Any other LTCG [not covered by Section 10(33), 10(36) and 10(38)] |
– |
20% |
– |
||
NR |
YES |
(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% |
– |
||
NR |
YES |
(h) Royalty for transfer of rights in respect of copyright in any book or computer software referred to in Section 115A(1A). |
– |
10% |
– |
||
NR |
YES |
(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% |
– |
||
NR |
YES |
(j) Fees for technical services payable in pursuance of an agreement approved by the Central Govt. / it is in accordance with industrial policy. |
– |
10% |
– |
||
NR |
YES |
(k) Any other income |
– |
30% |
– |
||
35 |
196-B |
R/NR |
Y |
Income from units |
– |
10% |
– |
36 |
196-C |
R/NR |
Y |
Income from foreign currency bonds or GDR (including long-term capital gains on transfer of such bonds) (not being dividend) |
– |
5% |
– |
37 |
196-D |
R/NR |
Y |
Income of FIIs from securities |
– |
20% |
– |
Notes:
1. In case of the eligible start up, TDS on income by way of perquisite under section 17(2)(vi) [esop, sweat equity etc.] will be fourteen days after the earlier of the following:
(1) 48 months from relevant AY
(2) date of sale of these security or sweat equity
(3) date of leaving the employment
2. TDS on salary is to be deducted as per individual’s slab rate. Individuals are given option to pay tax either as per the existing slab rates or as per new slab rates newly introduced under Finance Act 2020. Accordingly employers have to deduct TDS on salary as per tax slab option opted by its employees. Thus from current year employers has to take addition details about option opted along with the proposed tax investment declaration, which it takes at the beginning of the year for deduction of TDS as per slab rate.
3. TDS on dividend shall also not apply to dividend income credited or paid to a business trust by a special purpose vehicle or payment of dividend to any other person as may be notified. This means that no TDS needs to be deducted to AIF Category III also.
4. Now not applicable even to income by infrastructure debt fund as well
5. Applicable for Sellers who are having turnover of Rs. 10cr in last FY (other then CG and other sellers as notified)
This Section is not applicable in case where the same amount is subject to TDS by any other section or subject to TCS (other than tcs on sale of goods)
6. In case of Section 194A, 194C, 194H, 194I and 194J individuals or HUF will be liable to deduct TDS if, the turnover had cross Rs. 1 Crore in case of business and Rs. 50 Lakhs in case of profession in previous year.
7. In case of Section 194-IB and 194M individual and HUF will be liable to deduct TDS if, the turnover is less than Rs. 1 Crore in case of business or Rs. 50 Lakhs in case of profession in previous year.
8. The 25% reduction in TDS rate was applicable for period 14 May 2020 till 31 March 2021, from 1 April 2021 there is no reduction in TDS rates
9. R= Resident ; R/NR = Resident or Non Resident; NR = Non Resident
10. 206AA: If PAN is not provided rate of TDS will be 20% or the applicable rate whichever is higher
11. 206AB Applicability (newly introduced) (applicable w.e.f. 01.07.2021)
There will be Higher amount of TDS in case of following Non-filers (other than non residents) of ITR:
(a) who have not filed 2 income tax return of last two years and date of filing under 139(1) has expired and
(b) in whose case TCS/TCS exceed Rs. 50000 in each of last two years
TDS amount in case of above specified non filers will be Higher of :
(a) twice the rate specified for TDS
(b) twice the rate in force
(c) 5%”
* Ed. Cess Surcharge as applicable
Author Bio
Whether form 15G can be submitted by commission receiver, working as RD collecting agent of a Co-op Society ?
No Sir. As Form 15G is available in respect of deduction u/s 192A, 193, 194, 194A, 194D, 194DA, 194EE, 194-I or 194K only and TDS on commission will be deducted u/s 194H.
Sir, We paid TDS u/s 194C RS.9363 instead of Rs. 6363. So How to Correction pls guide us. 3000 more paid in challan.
Rajesh Ji, either you can claim a refund or adjust it with other TDS liability. For more details, let’s connect over email.