Article compiles TDS Rate Chart For Financial Year 2020-21 and Assessment Year 2021-22 along with Due date of Payment of TDS and mode of Payment of TDS. Article explains Section under which TDS is deductible and TDS Rate Applicable. Article Covers Change in TDS Applicable from 01.04.2020 which was proposed by Union BUdget 2020 which includes TDS on Dividend, Change in Rate of TDS Deduction on Technical Professional Fees under Section 194J, Changes in TDS under Section 194K and 194O.

TDS Rates For Financial Year 2020-21 i.e. Assessment Year 2021-22

Section Particulars TDS Rate Individual/ HUF (Indian Resident)(in %) TDS Rate for (NRI) in India (in %) Domestic Company (in %) Other than domestic Company (in %)
192 Payment of salary Normal Slab Rate Normal Slab Rate
194 Dividend

(monetary limit- Rs 5000)

10

(W.e.f. 01.04. 2020)

 –
194A Income by way of interest other than “Interest on securities”

(Monetary Limit – Rs 40,000)

10 10  –
194B Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort

(Monetary Limit – Rs 10,000)

30 31.20
194BB Income by way of winnings from horse races

(Monetary Limit – Rs 10,000)

30 31.20
194C A Payment to contractor/ sub­contractor

(Monetary Limit – Rs 30,000 per contract or Rs 1,00,000 for aggregate amount during the year)

a. HUF/ Individuals 1 1
b. Others 2 2
194D Insurance commission

(Monetary Limit – Rs 15,000)

5 10
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

(Monetary Limit – Rs 1,00,000)

5
194H Commission or brokerage

(Monetary Limit – Rs 15,000)

5 5
194-I Rent

(Monetary  Limit   –  Rs  2,40,000)

  a. Plant &  Machinery 2 2
  b. Land or  building or  furniture or fitting 10 10
194-IA Payment on transfer of certain immovable property other than agricultural  land (Monetary  Limit  –Consideration exceeding Rs 50,00,000) 1 1
194-IB A Payment of rent by    individual   or  HUF not liable to tax audit

(Monetary Limit – Rent for the month or part of the month exceeds Rs  50,000)

5
194J A Payment  for fees for  Technical  services,  Professional services    or royalty etc.  (Monetary Limit –Rs  30,000 p.a)        
a. Fee for  technical  services 2

(w.e.f. 01.04.2020)

2

(w.e.f. 01.04. 2020)

b. Fee in other  all cases as per Section 194J

Note: With effect from June 1, 2017 the rate of TDS would be 2% in case of payee engaged in business of operation of call center.

10 10
194K Payment of any income in  respect of:

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

b)The Units from    the administrator

c) Units from
specified company

10

(w.e.f. 01.04.2020)

10

(w.e.f. 01.04. 2020)

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. 5 5
194N Cash withdrawal in excess of Rs. 1 crore during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office 2 2
194-O

 

 

 

Applicable for E-  Commerce operator for sale of goods or provision of service facilitated by it through its digital or electronic facility or platform. 1

(w.e.f. 01.04.2020)

1

(w.e.f.  01.04.2020)

 

195 Payment of any other sum to a Non-­resident
a)Any other income 31.20 41.60
b)Income by way of fees for technical services 10.40
c) Income in respect of investment made by a Non-resident Indian Citizen 20.80
d) Income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern 20.80
e) Income by way of long-term capital gains as referred to in Section 112A 10.40
f) Income by way of short -term capital gains referred to in Section 111A 15.60

Due Dates for TDS Payment and Return filing:

Month of Deduction Quarter ending Due dates for TDS payment through challan Due Date for filing of Return for All Deductors
For Govt. Deductor For Other Deductor
April
May
June
30th June

7th May
7th June
7th July

31st July
July August September 30th
September

7th August
7th September
7th October

31st October
October November December 31st
December

7th November
7th December
7th January

31st January
January February March 31st
March
7th Feb
7th March
7th April
30th April 31st May

Some other important factor:

  • Payment can be made Online/Offline
  • Payment Challan: Challan No.281
  • TDS on property to be paid along with Return in Form 26QB (within 30 days from the end of the month in which deduction is made).
  • TDS on rent of property exceeding Rs 50000 per month to be paid along with Return in Form 26QC (within 30 days from the end of the month in which deduction is made)

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6 Comments

  1. DEEPAK KATHURIA says:

    Whether entire dividend recd on equity shares and mutual fund amount is taxable ( i.e less than Rs 5000/- & more than Rs 5000/-) is to be offered for tax in computation of income wef 01/04/20 by Individual

    In case if dividend on equity shares and mutual fund amount is exceeding Rs 5000/- then the company is liable to deduct tds 10% such tds credit can be taken in computation of income
    please also send reply to deepakkathuria2003@yahoo.co.in

    1. Jinalee says:

      yes, we can claim the credit of tds in computation of income.
      Capital gain income is also exempted from the applicability of Section 194K (subject to further notification).

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