TDS Rate Chart For Assessment year 2021-22 /Financial Year 2020-21

As we all are aware that yesterday our Honourable Finance Minister has conducted press release. In that press release she declared that The TDS rates for all non-salaried payment to residents, and tax collected at source rate will be reduced by 25 percent of the specified rates for the remaining period of FY 2020-21. This will provided liquidity to the tune of Rs 50, 000 Crore.

After this press release, there are many doubts raised by our readers regarding TDS rates and section in which this reduction will be applicable. Hence, here we come up with in depth TDS rate chart for Assessment Year 2021-22 (Financial Year 2020-21) after this amendment.

This article will also cover amendments taken place by Finance Budget, 2020 such as Two New TDS Sections i.e. Section 194K and Section 194O which provides TDS on Mutual Fund Income and TDS on E-Commerce Transactions. There were also changes in few existing sections of TDS which includes amendment in Section 194J by which TDS on Technical Services been reduced to 2%.

TDS Rate ChartTDS Rate Chart for Assessment year 2021-22:

Kindly Note amended rates are been given on the basis of PIB Notification dated 13.05.2020 and on the date of Publication of this post no notification in this regard is been notified by the CBDT. Press release can be accessed at the following link-  https://pib.gov.in/PressReleasePage.aspx?PRID=1623745

Section

Nature of Payment

Thres-hold Limit (Rs) TDS Rate (%)

Upto 13th May, 2020

TDS Rate (%)

From 14th May, 2020

Resident Non – Resident [*]

 

Resident Non – Resident [*]
Section 192: Payment of salary Normal Slab Rate Normal Slab Rate Normal Slab Rate Normal Slab Rate
Section 192A: Payment of accumulated balance of provident fund which is taxable in the hands of an employee 50, 000 10 10.40

(Not applicable for Foreign Companies)

10 10.40

(Not applicable for Foreign Companies)

Section 193: Interest on securities
a) any debentures or securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act; 10 7.5
b) any debentures issued by a company where such debentures are listed on a recognised stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder; 10 7.5
c) any security of the Central or State Government;

[i.e. 8% Savings (Taxable) Bonds, 2003 and 7.75% Saving (Taxable) Bonds, 2018]

10, 000 10

 

7.5
d) interest on any other security 10 7.5
Section 194: Dividend 5, 000

(w.e.f. 1/4/2020)

10 7.5
Section 194A: – Interest other than interest on securities – Others 5, 000 10 7.5
Section 194A: Banks / Co-operative society engaged in business of banking / Post Office 40, 000 10 7.5
Section 194A: Senior citizen

The interest amount should be earned from the following:

-Deposits with banks;

-Deposits with post offices

-Fixed deposit schemes

-Recurring deposit schemes

50, 000 10 7.5
Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort 10, 000 30 31.20 30 31.20
Section 194BB: Income by way of winnings from horse races 10, 000 30 31.20 30 31.20
Section 194C: Payment to contractor / sub-contractor Rs 30, 000 per contract or Rs 1, 00, 000 for aggregate amount during the year
a) HUF/ Individuals 1 0.75
b) Others 2 1.50
Section 194D: Insurance commission 15, 000 5 3.75
Section 194DA: Payment in respect of life insurance policy w.e.f. 1/9/2019, the tax shall be deducted on the amount of income comprised in insurance pay-out 1, 00, 000 5 3.75
Section 194E: Payment to non-resident sportsmen /sports association 20.80 20.80
Section 194EE: Payment in respect of deposit under National Savings scheme 2, 500 10 10.40

(Not applicable for Foreign Companies)

7.5 10.40

(Not applicable for Foreign Companies)

Section 194F: Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India 20 20.80

(Not applicable for Foreign Companies)

15 20.80

(Not applicable for Foreign Companies)

Section 194G: Commission, etc., on sale of lottery tickets 15, 000 5 5.20 3.75 5.20
Section 194H: Commission or brokerage 15, 000 5 3.75
Section 194I: Rent 2, 40, 000
a) Plant & Machinery 2 1.5
b) Land or building or furniture or fitting 10 7.5
Section 194-IA: Payment on transfer of certain immovable property other than agricultural land 50, 00, 000 1 0.75
Section 194-IB: Payment of rent by individual or HUF not liable to tax audit Rent for the month or part of the month exceeds Rs 50, 000 5 3.75
Section 194-IC: Payment of monetary consideration under Joint Development Agreements 10 7.5
Section 194J: Payment for fees for Technical services, Professional services or royalty etc. Rs 30, 000 p.a
a) Cases, wherein, the payee is engaged in the business of the operation of Call Centre only (effective from 1st June 2017) 2 1.5
b) In case of fees for technical services (not being a professional royalty where such royalty is in the nature of consideration for sale, distribution or exhibition of cinematographic film) (effective from 1st April 2020) 2 1.5
c) Professional royalty where such royalty is in the nature of consideration for sale, distribution or exhibition of cinematographic film 10 7.5
d) In case of fees for any other professional services 10 7.5
e) In case the payee fails to furnish PAN 20 20
Section 194K: Payment of any income in respect of

a) Units of a Mutual Fund as per Section 10(23D)

b) Units from the administrator

c) Units from specified company

(This Section is inserted by Finance Act, 2020 which is applicable from 01/04/2020)

10 7.5
Section 194LA: Payment of compensation on acquisition of certain immovable property 2, 50, 000 10 7.5
Section 194LB: Payment of interest on infrastructure debt fund 5.20 5.20
Section 194LBA(1): Business trust shall deduct tax while distributing, any interest received or receivable by it from a SPV or any income received from renting or leasing or letting out any real estate asset owned directly by it, to its unit holders. 10 7.5
Section 194LBA(2): Payment of the nature referred to in Section 10(23FC)(a) 5 5
Section 194LBA(2): Payment of the nature referred to in Section 10(23FC)(b) 10 10
Section 194LBA(3): 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. For Non Resident Individual – 31.20

 

For Foreign Company – 41.6

For Non Resident Individual – 31.20

 

For Foreign Company – 41.6

Section 194LBB: Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)] 10 For Non Resident Individual – 31.20.

For Foreign Company – 41.6

7.5 For Non Resident Individual – 31.20.

For Foreign Company – 41.6

Section 194LBC: Income in respect of investment made in a securitisation trust (specified in Explanation of section 115TCA) 25% in case of Individual or HUF

30% in case of other resident person

10% in case of Domestic Companies

 

For Non Resident Individual – 31.20

 

For Foreign Company – 41.6

18.75% in case of Individual or HUF

22.50% in case of other resident person

7.5% in case of Domestic Companies

 

For Non Resident Individual – 31.20

 

For Foreign Company – 41.6

Section 194LC: Payment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds (including long-term infrastructure bond)

Note: Now TDS at concessional rate of 5% will be applicable for borrowings made after April 1, 2020 but before July 1, 2023.

5.20

[In case where interest is payable in respect of Long-term Bond or Rupee Denominated Bond listed on recognised stock exchange located in IFSC then rate will be 4.16%]

5.20

[In case where interest is payable in respect of Long-term Bond or Rupee Denomi-nated Bond listed on recognised stock exchange located in IFSC then rate will be 4.16%]

Section 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

Note: Now TDS at concessional rate of 5% will be applicable for borrowings made after April 1, 2020 but before July 1, 2023.

5.20 5.20
Section 194M: Payment of commission (not being insurance 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.

Tax shall be deducted under section 194M with effect from 1/09/2019.

50 Lakhs 5 3.75
Section 194N:

a) Filed the returns of income for all of the three assessment years relevant to the three previous years and cash withdrawals exceeding 1 cr

 

 

 

 

 

 

2

 

 

 

 

 

 

2

 

 

 

b) Not Filed the returns of income for all of the three assessment years relevant to the three previous years: (This provision is applicable w.e.f. 01 July, 2020)

– Cash withdrawals from 20 Lakhs to 1 Cr

 

 

2

(w.e.f. 01 July, 2020)

 

 

 

 

 

 

2

(w.e.f. 01 July, 2020)

 

 

 

 

– Cash withdrawals exceeding 1 cr 5 5
Section 194O: Applicable for E-Commerce operator for sale of goods or provision of service facilitated by it through its digital or electronic facility or platform.

(In case the E-commerce participant does not furnish PAN or Aadhar Number to the e-commerce operator, TDS shall be deducted at the rate of 5% under section 206AA of the Act)

(This Section is inserted by Finance Act, 2020 which is applicable from 01/10/2020)

1

(w.e.f. 01st October, 2020)

0.75

(w.e.f. 01st October, 2020)

Section 195: Payment of any other sum to a Non-resident
a) Income in respect of investment made by a Non-resident Indian Citizen 20.80 20.80
b) Income by way of long-term capital gains referred to in Section 115E in case of a Non-resident Indian Citizen 10.40 10.40
c) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-Section (1) of Section 112 10.40 10.40
d) Income by way of long-term capital gains as referred to in Section 112A 10.40 10.40
e) Income by way of short-term capital gains referred to in Section 111A 15.60 15.60
f) Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses 10(33), 10(36) and 112A 20.80 20.80
g) Income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC) 20.80 20.80
h) Income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of Section 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of Section 115A of the Income-tax Act, to a person resident in India 10.40 10.40
i) Income by way of royalty [not being royalty of the nature referred to point g) above E] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy 10.40 10.40
j) Income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy 10.40 10.40
k) Any other income 31.20 31.20
Section 196B: Income from units (including long-term capital gain on transfer of such units) to an offshore fund 10.40 10.40
Section 196C: Income from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR) 10.40 10.40
Section 196D: Income of foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities) 20.80 20.80

* The rate of TDS are after considering cess @4% and shall be increased by applicable surcharge.

[As amended by Press Release dated 13th May, 2020 and Finance Bill, 2020]

(Compiled by CA Sandeep Kanoi and CA Prapti Raut)

Disclaimer: The contents of this article are for information purposes only and does not constitute an advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up.  The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that Author / TaxGuru is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof. This is not any kind of advertisement or solicitation of work by a professional. Please refer to the complete Terms & Disclaimer here. Terms & Disclaimer

Read Also:-

S. No. Title
1 Section 272BB Penalty for failure to comply section 203A provisions
2 Section 272B Penalty for failure to comply with provisions of PAN
3 Section 272AA Penalty for failure in complying with provisions of section 133B
4 Section 272A Penalty for failure to answer questions or furnish information / returns/ statements or allow inspections etc
5 Section 271J Penalty on professionals for furnishing incorrect information in reports / certificates
6 Section 271I Penalty for failure in furnishing Form 15CA & Form 15CB
7 Section 271H Penalty for late filing/non-filing of TDS or TCS return
8 Penalty for failure in furnishing report or furnishing inaccurate report under section 286 – Section 271GB
9 Section 271GA Penalty for failure in furnishing the information / document in Form 49D as required under section 285A
10 Section 271G Penalty for failure to furnish information / document as per provisions of section 92D
11 Section 271FB Penalty for default in furnishing return of fringe benefits
12 Section 271FAB Penalty for failure to furnish statement / information / document by an eligible investment fund
13 Penalty for providing inaccurate statement of financial transaction or reportable account- Section 271FAA
14 Section 271FA Penalty for failure in furnishing statement of financial transactions or reportable account
15 Section 271E Penalty for contravening provisions of section 269T
16 Section 271DB | Penalty for contravening provisions of section 269SU
17 Section 271DA Penalty for contravening provisions of section 269ST
18 Section 271CA Penalty for failure to collect tax at source (TCS)
19 Section 271D Penalty for contravening provisions of section 269SS
20 Section 271C Penalty for failure / non-deduction / non-payment of TDS
21 TDS Rate Chart for AY 2020-21 and AY 2021-22
22 Section 271BA Penalty for failure to furnish section 92E report
23 Section 271B Penalty for failure to get accounts audited
24 Section 271AAC Penalty in respect of certain specified income
25 Section 271AA Penalty for failure to maintain Transfer Pricing documents
26 Section 271A Penalty for failure to keep / maintain or retain books of accounts, documents
27 Section 270A(1) Penalty for under-reporting & misreporting of income
28 Section 269SU Acceptance of payment through electronic modes
29 Section 234F Late fees for default in filing of income tax return
30 Section 234E Late Fee for default in filing of TDS / TCS returns
31 Section 158BFA(2) – Penalty on undisclosed income for block period
32 Section 140A(3) Penalty for non-payment of self-assessment tax

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26 Comments

  1. jyoti says:

    Sir, you have wonderfully explained the things. But just let me know, am I suppose to make payment of advance tax 1st instalment by 15th June as otherwise I may liable to interest. In case I am liable to make payment of advance tax, how it can be said that there is additional liquidity in the hands of assessee.

  2. DEBENDRA KUMAR KAR says:

    Sir,
    I have received few bills pretaining to Mar /Apr 20,and Those bills I am going to account after 14.05.2020,
    Kindly help me on which Tax rate I have to take in the following cases,
    1.Expenses incurred before 14.05.2020,but bill Date after 14.5.2020 and
    2 Expenses incurred before 14.05.2020 also bill Date before 14.05.2020,

  3. Prachi Pohani says:

    Sir, I have lower deduction certificate for section 194 IB, according to which TDS is 4 per cent. Will I be able to claim benefit of 25% reduction in rate?

  4. vswami says:

    “Section 194-IA: Payment on transfer of certain immovable property other than agricultural land
    (Monetary Limit – Consideration exceeding Rs 50,00,000)-
    1 %
    Ideally, the same language as used in sec IA, need to have been adopted, so as to avoid any confusion in the minds of one and all of your readers.
    courtesy

  5. A Wilson says:

    Sir,

    Pls check and update, if correct – Threshold Limit for 194A [ Rs.40,000 for Banks/Post Office/Co-operative Society & Rs.5000 for Others ]

  6. raj says:

    clarifications:-
    01. once an income from salaries/individual assess opts of new scheme of tax rates for return under new syllabus without exemptions and deductions of concessional tax rate and cannot resort to old syllabus of return in future years. foe ex: for 2020-21 new scheme and 2021-22 old scheme return filing feasible or not

    02.income tax act revamp to cut the corruption in revenue dept by litigations and disputes is path breaking step by the finance minister. present income is on income from various sources, tds on payments at source, tcs on collections, advance taxes etc will be gradually stopped and payments on payments and expenses at transaction level will be levied like in foreign countries. will the income tax act get changed to expense & payment tax in future.
    3. please provide articles on new and old cost/benefit criteria of complexity of computations under income from salaries of individuals. present compulsory saving and eligible loan payments under sec80 & other deductions hra, strd deductions, rebates etc payments to be made but not claim in roi.

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