Due to Covid-19, CBDT has reduced the TDS/TCS rate by 25% through press release dated 13/05/2020. However, No official notification is being released by CBDT till now for reduction of TDS/TSC rate. On detailed analysis, I come to know that CBDT has reduced the TDS/TCS rate in most of cases but not in all cases as explained in my compilation.

TDS Rate Chart for F.Y. 2020-21 (A.Y: 2021-22) of Commonly used Sections

Section Nature of payment Threshold Limit Applicable from 01/04/2020 to 13/05/2020 Applicable from 14/05/2020 to 31/03/2021 Applicable from 01/04/2020 to 31/03/2021

( If PAN N.A.)

Rs.  TDS Rate (%) TDS Rate (%) TDS Rate (%)
192 Salaries Normal slab rate Normal slab rate Normal slab rate
192A Premature withdrawal from EPF 50000 10 10 20
194 Dividends 5000 10 7.5 20
194A Interest (Banking co., co-operative society engaged in banking, post office) 40000 10 7.5 20
194A Interest (Any other person) 5000 10 7.5 20
194C Contractor-Single transaction-

-Individual/HUF

-Others

30000 1

2

0.75

1.5

20
194C Contractor –Consolidated payment during the F.Y.
– Individual/HUF- Others
100000 1

2

0.75

1.5

20
194D Insurance commission, if Recipient is

– resident (other than Company)

–  Domestic Company

15000 5

10

3.75

10

20
194DA Maturity of Life insurance policy 100000 5 3.75 20
194H Commission/Brokerage 15000 5 3.75 20
194I Rent of – Plant/Machinery /Equipment

– Land and Building/Furniture & Fixture

240000 2

10

1.5

7.5

20
194IA Transfer of certain immovable property other than agriculture land 50 lakh 1 0.75 20
194IB Rent by Individual/HUF 50000 per month 5 3.75 20
194IC Payment under Joint Development Agreements to Individual/HUF 10 7.5 20
194J Professional Fees & Royalty 30000 10 7.5 20
194J Technical Fees (w.e.f. 01.04.2020) 30000 2 1.5 20
194J Payment to call centre operator 30000 2 1.5 20
194J Director’s fees, Commission or other fees other than Salary 10 7.5 20
194K Payment of dividend by Mutual Funds 5,000 10 7.5 20
194M Payments for carrying out any work in a contract, by way of commission or brokerage or fees for professional services during the financial year, by Individual/HUF 50 lakh 5 3.75 20
194N Withdrawal of cash from Banks & other Specified Persons 1 Crore 2 2 20
194N Withdrawal of certain amount in cash (first proviso of section 194N, where ITR not filed for last 3 years) if-

–  Amount is more than Rs.20 lakh but up to Rs. 1 crore

–  Amount exceeds Rs. 1 crore (Applicable from 01.07.2020)

N.A.

N.A.

 

 2

5

20
194-O Applicable for e-commerce operator for the sale of goods or services facilitated by it through its digital or electronic facility or platform (Applicable from 01.10.2020) N.A 0.75 5
195 Long -term capital gain to Non-Residents

– u/s – 115E/112(1)(c)(iii)/112A

– Any Other Gains

10*

20*

 

 

10*

20*

10*

20*

195 Short-term capital gain – 111A to Non-Residents 15* 15* 15*
195 Payment of Royalty to Non-Residents 10* 10* 10*
195 Payment Fees for technical services to Non-Residents

 

10* 10* 10*

TCS Rate Chart for F.Y. 2020-21 (A.Y: 2021-22) of Commonly used Sections

Section Nature of payment Threshold Limit Applicable from 01/04/2020 to 13/05/2020

TCS Rate (%)

Applicable from 14/05/2020 to 31/03/2021

TCS Rate (%)

Applicable from

01/04/2020 to 31/03/2021

( If PAN N.A.)

206C Scrap 1 0.75 5
206C Alcoholic liquor for human consumption and Indian made foreign liquor 1 1 5
206C Parking lot, toll plaza, mining and quarrying (other than mining and quarrying of mineral oil, petroleum and natural gas) 2 1.5 5
206C Minerals, being coal or lignite or iron ore 1 0.75 5
206C Sale of motor vehicle of the value exceeding Rs. 10 Lacs 10,00,000 1 0.75 5
206C Remittance out of India under the Liberalized Remittance Scheme of the RBI of the value > 7 Lacs in a F/Y. (Applicable from 01.10.2020) 7,00,000 N.A. 5 10
206C Sale of overseas tour package (Applicable from 01.10.2020) N.A. 5 10
206C Remittance out of India for education out of Loan from Financial Institution under the Liberalized Remittance Scheme of the RBI of the value exceeding 7 Lacs in a financial year (Applicable from 01.10.2020) 7,00,000 N.A. 0.5 5
206C Receipt against Sale of goods (other than goods exported out of India or goods given in the above points) of the value > 50 Lacs (Applicable from 01.10.2020) 50,00,000 N.A. 0.075 1

Disclaimer: The contents of this article are for information purposes only and do 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.

Author Bio

Qualification: CA in Practice
Company: Goyal Hitesh & Co., Chartered Accountants
Location: FARIDABAD, Haryana, IN
Member Since: 26 Feb 2020 | Total Posts: 5

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