In Budget 2020, Government has made various amendment either changes in existing TDS/TCS Rates or addendum new TDS/TCS Rates, A.Y 2021-22

TDS Rates  Chart (Specific to Changes in Budget)

  • Changes in Existing Rate
Sr.No Nature of Payment Section Limit          TDS Rate for
        Ind. and HUF Other than Ind. and HUF If PAN Not Available
1 Salary Payment 192 Slab rate Note* N.A 30%

Note:- Circular Dated 13/04/2020 F.No 370142/13/2020-TPL, has clarified that

1. Those who are having income under the head other than “Business and Profession” shall intimate of his/her option under Section 115BAC to his Employer and accordingly Employer shall deduct TDS according to New Tax Rate. But in case of No such Intimation Employer shall deduct TDS at Normal/Old Rate. Further, Such Intimation made to employer doesn’t have any relevance to option exercised at the time of return filing U/S 139(1). It Means it may differ.

2.  All those who are having Income Under head “PGBP” Shall exercised option after considering all intrinsic because option once exercised can not revoke on later on. (Refer:- Circular)   

2 Payment to Contractor” 194C Rs. 30000 Single Bill  Or Rs. 1,00,000

Aggt. Year

1% 2% 20%

Note:- Definition of “Work” under section,  has been amended to include In Contract for Manufacturing, the raw material supplied by the  Assessee or Its Associates  shall fall with in purview. Before  Amendment it was a way to escapement  from Tax Net, In case Supply of raw material by related person.

3 Fees for Technical Service 194J Rs. 30000 2% 2% 20%

Note:- Due to reduce litigation between Authority and Assessee being an Interpretation issue under section 194C and 194J regarding short Deduction of Tax. Hence, Govt. has reduced rate of deduction for “Fees for Technical Service (not being Professional Service Or royalty in nature of consideration for sale, distribution or Exhibition of cinematographic film)”

Please note that the rate in case of fees for any other professional services will remain the same at 10% only.

  • Addendum Rates
Sr.No Nature of Payment Section Limit          TDS Rate for
        Ind. and HUF Other than Ind. and HUF If PAN Not Available
1 Income from Unit of Mutual Fund 194K Rs. 5000 10% 10% 20%
Note:-

To deduct TDS income on Income in Nature of Dividend and not on Gain.

2

TDS on cash withdrawal

194N Rs. 1 Cr. 2% 2% 20%
Note:-

In case of Individual who had not filed Income tax Return for 3 Preceding Financial Year and withdraw amounting to more than

20 Lacs

2% – from 20 lacs to 1 Cr

5% – More than 20 Lacs

3

TDS on payment to resident contractors and professionals

194M Rs. 50 Lacs 5% N.A 20%
Note :- Payment of Commission, Brokerage, Fees, to resident person by Ind. or  HUF exceeds specified limit shall have deduct TDS.

(From 01/09/2019)

4 TDS by E-Commerce operator 194O Note* 1% 1% 5%/20%
Note:-

E-commerce operator shall deduct TDS at 1% at the time of Credit or Payment to E-Commerce Participant.

Exception:-

No TDS in case of Individual or HUF where in sale of goods or Services doesn’t exceeds 5 Lacs and furnished PAN or Aadhar.

 TCS Rate Applicable from 01.10.2020

Sr.No Nature of Payment Section Limit          TDS Rate for
        Ind. and HUF Other than Ind. and HUF If PAN Not Available
1 Foreign Remittance Through LRS 206C(1G) Note* 5% 5% 10%
Note:-

Collect TCS if Authorized Dealer receive amount exceeding Rs. 7 Lacs For remittance.

2 Overseas Tour Packages 206C(1G) Any Amount 5% 5% 10%
3 Sale of Goods 206C Note* 0.1% 0.1% 1%
Note:

1. Only those sellers whose total sales, gross receipts or turnover from the business carried on by it exceed ten crore rupees during the financial year immediately preceding the financial year, shall be liable to collect such TCS.

2. A seller of goods is liable to collect TCS at the rate on consideration received from a buyer in a previous year in excess of 50 Lacs.

3. Export of Goods not covered under Sale of Goods.

Author Bio

Qualification: CA in Job / Business
Company: ALAG PROPERTY CONSTRUCTION PRIVATE LIMITED
Location: Mumbai, Maharashtra, IN
Member Since: 19 Apr 2018 | Total Posts: 12
Working in Company engaged in Real E-State Sector, have a experienced in handling matters related to Legal, Audit, Taxation. View Full Profile

My Published Posts

More Under Income Tax

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

October 2020
M T W T F S S
 1234
567891011
12131415161718
19202122232425
262728293031