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% |
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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) |
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| 2 | Payment to Contractor” | 194C | Rs. 30000 Single Bill Or Rs. 1,00,000
Aggt. Year |
1% | 2% | 20% |
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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. |
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| 3 | Fees for Technical Service | 194J | Rs. 30000 | 2% | 2% | 20% |
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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. |
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- 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. |
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| 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 |
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| 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) |
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| 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. |
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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. |
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| 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. |
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