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 |
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Respected Sir, Liked your article. I am in 30% tax bracket. apart from my income from salaries i am dividends from equity share and mutual fund. whether the dividend earnings are taxed at 30% slab or at 10% upto 13.5.20 and 7.5% from 14.5.20 to 31.03.21. please guide. Thanking you in advance
Very nicely explained. it was useful information for me! very easily understand! keep sharing like this!
Well explained. Thank you.