DO YOU KNOW TDS RATES FOR F.Y. 2020-21 ?

DO YOU KNOW TDS RATES FOR    F.Y. 2020-21 ?

What is meant by TDS?

TDS stands for Tax Deducted at Source. TDS is a tax which is deducted by a person who’s making payment to another person on behalf of certain services received by him. Under this, certain percentage of tax is deducted by a responsible person before making payment to the receiver.

Section 192 to 206 of Income Tax Act, 1961 lays down the provisions relating to deduction of tax at source. In TDS, the person who deducted TDS is known as Deductor and the person who receives payment is known as Deductee.

Once tax is deducted, it is the responsibility of the Deductor to deposit the same with the Government as per prescribed procedures stated in the Income Tax Act, 1961. The Deductee from whose income, tax has been deducted at source would be entitled to get credit of the amount so deducted on the basis of Form 26AS or TDS certificate issued by the Deductor.

Well following are few illustrations of payments on which TDS is deducted by Taxofile:

Why TDS Rates has been changed by the Government ?

In this pandemic all the sectors of the Economy get affected very badly. Henceforth, the government has decided to give some relief to the Resident Indians in the form of less TDS Rates. These rates will be in existence only for the period of 14/05/2020 to 31/03/2021. However, the tax rates shall not be lowered when it is necessary to deduct or collect tax at a higher tax rate because PAN / AADHAR not provided.

What are the TDS Rates for F.Y. 2020-21 ?

In the below table commonly used TDS Rates are given and then in other tables comprehensive list of various TDS Rates are given as per the applicability of payments which varies from Resident to Non-Resident as well as from Domestic to International Companies.

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

Non-resident
   
Resident   

Non-resident
   
   
   
   
   
Rs.    
   
TDS Rate (%)   
   
TDS Rate (%)   
   
TDS Rate (%)   
   
TDS Rate (%)   
192 Salaries    
-   
   
Normal slab rate   
   
Normal slab rate   
   
Normal slab rate   
   
Normal slab rate   
194A Interest (Banking co., Co-operative Society
engaged in banking, Post Office)
40000 10 - 7.5 -
194C Contractor - Single Contractor
- Individual/ HUF
- Others
30000
1
2

-
-

0.75
1.5

-
-
194G Commission - Lottery 15000 5 5 3.75 5
194H Commission / Brokerage 15000 5 - 3.75 -
194I Rent of
- Plant / Machinery / Equipment
- Land and building / Furniture & Fixtures
240000
2
10

-
-

1.5
7.5

-
-
194J Professional Fees 30000 10 - 7.5 -
194M Certain payments by Individual / HUF 50 Lakh 5 - 3.75 -
194N Payment of certain amount in cash 1 Crore 2 2 2 2
195 Income of Investment made by NRI - - 20 - 20

TDS Rate Chart for F.Y. 2020-21 (A.Y: 2021-22) For Residents And Non-Residents


Section

Nature of payment

Threshold Limit

Applicable from 01/04/2020 to 13/05/2020

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




Resident

Non-resident

Resident

Non-resident



Rs.

TDS Rate (%)

TDS Rate (%)

TDS Rate (%)

TDS Rate (%)

192

Salaries

-

Normal slab rate

Normal slab rate

Normal slab rate

Normal slab rate

192A

Premature withdrawal from EPF

50000

10

10

10

10

193

Interest on securities - 8% Savings (Taxable) Bonds, 2003 or 7.75% Savings (Taxable) Bonds, 2018 during the financial year

10000

10

-

7.5

-

193

Interest on securities - Interest on securities for money issued by or on behalf of any local authority/statutory corporation, listed debentures of a company(other than demat form), any other interest on securities

5000

10

-

7.5

-

194

Dividends

5000

10

-

7.5

-

194A

Interest (Banking co., co-operative society engaged in banking, post office)

40000

10

-

7.5

-

194A

Interest (Any other person)

5000

10

-

7.5

-

194B

Winning from lotteries

10000

30

30

30

30

194BB

Winning from Horse race

10000

30

30

30

30

194C

Contractor-Single

transaction-Individual/HUF

-Others

30000



1

2



-

-



0.75

1.5



-

-

194C

Contractor – Consolidated Payment During the F.Y.

- Individual/HUF

- Others

100000





1

2





-

-





0.75

1.5





-

-

194D

Insurance commission

- Other than Company

- Company

15000



5

10



-

-



3.75

10



-

-

194DA

Maturity of Life insurance policy

100000

5

-

3.75

-

194E

Non-resident sportsmen or sports association

-

-

20

-

20

194EE

NSS

2500

10

10

7.5

10

194F

Repurchase units by MFs

-

20

20

15

20

194G

Commission-Lottery

15000

5

5

3.75

5

194H

Commission/Brokerage

15000

5

-

3.75

-

194I

Rent of - Plant/Machinery /Equipment

- Land and Building/Furniture & Fixture

240000

2

10

-

-

1.5

7.5

-

-

194IA

Transfer of certain immovable property other than agriculture land

50 lakh

1

-

0.75

-

194IB

Rent by Individual/HUF

50000 per month

5

-

3.75

-

194IC

Payment under Joint Development Agreements to Individual/HUF

-

10

-

7.5

-

194J

Professional Fees

30000

10

-

7.5

-

194J

Technical Fees (w.e.f. 01.04.2020)

30000

2

-

1.5

-

194J

Payment to call centre operator (w.e.f. 01.06.2017)

30000

2

-

1.5

-

194J

Director's fees

-

10

-

7.5

-

194K

Payment of any income in respect of

(a) units of a mutual fund as per section 10(23D); or

(b) the units from the administrator; or

(c) units from specified company

(w.e.f. 01.04.2020)

5000

10

-

7.5

-

194LA

Compensation on transfer of certain immovable property other than agriculture land

(TDS exempted if covered under RFCTLARR Act w.e.f. 01.04.2017)

250000

10

-

7.5

-

194LB

Income by way of interest from infrastructure debt fund

-

-

5

-

5

194LBA

Income from units of business trust

- interest received or receivable from a special purpose vehicle; or

- dividend referred to in sub-section (7) of section 115-O

-



10



10



5



10



7.5



7.5



5



10

194LBA

Distribution of rental income to unit holders

- Other than Comapany

- Company

-





10

10





30

40





7.5

7.5





30

40

194LBB

Income in respect of units of investment fund

- Other than Company

- Company

-





10

10





30

40





7.5

7.5





30

40

194LBC

Income in respect of investment in securitization fund

- Individual/HUF

- Company

- Other Person

-





25

30

30





30

40

30





18.75

22.5

22.5





30

40

30

194LC

Income by way of interest by an Indian specified company to a non-resident/foreign company on foreign currency approved loan / long-term infrastructure bonds from outside India

-

-

5

-

5

194LC

Income by way of interest by an Indian specified company on rupee denominated bond / any long-term bonds from outside India, which is listed only on a recognized stock exchange located in any International Financial Services Centre

-

-

4

-

4

194LD

Interest on certain bonds from Govt. securities

-

-

5

-

5

194M

Certain payments by Individual/HUF

50 lakh

5

-

3.75

-

194N

Payment of certain amount in cash

1 Crore

2

2

2

2

194N

Payment of certain amount in cash (first proviso of section 194N)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.





N.A.



N.A.





2



5





2



5

194-O

Applicable for e-commerce operator for the sale of goods or provision of services facilitated by it through its digital or electronic facility or platform (Applicable from 01.10.2020)

-

N.A

-

0.75

-

195

Income of Investment made by an NRI

-

-

20

-

20

195

Long-term capital gain

- Under Section - 115E/

112(1)(c)(iii)/112A

- Any Other Gains

-





-

-





10

20





-

-





10

20

195

Short-term capital gain - 111A

-

-

15

-

15

195

Royalty

-

-

10

-

10

195

Fees for technical services

-

-

10

-

10

195

Interest income payable by Govt./Indian concern (other than section 194LB or 194LC)

-

-

20

-

20

195

Any Other Income - Other than Company

- Company

-

-



-

30



40

-



-

30



40

196A

Income in respect –

- of units of a Mutual Fund specified under clause (23D) of section 10; or

- from the specified company referred to in the Explanation to clause (35) of section 10

-

-

20

-

20

196B

Income from units to an offshore fund

-

-

10

-

10

196C

Income from foreign currency bonds or GDR of an Indian company

-

-

10

-

10

196D

Income of foreign Institutional Investors from securities (not being dividend or capital gain)

-

-

20

-

20

TDS rate shall be increased by applicable surcharge and Health & Education Cess.

Note: In case of non-furnishing of PAN/Aadhaar by Deductee, TDS will be charged at normal rate or 20% (5% in case of section 194-O), whichever is higher.

TDS Rates Applicable for a Domestic Company

   
Particulars   
   
TDS Rate (%)   
   
TDS Rates from 01.04.2020 to 13.05.2020   
   
TDS Rates from 14.05.2020 to 31.03.2021   
   
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;
   
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;
   
c) any security of the Central or State Government;
   
d) interest on any other security   
   
10   
   
10   
   
7.5   
   
Section 194: Dividend   
   
10   
   
10   
   
7,5   
   
Section 194A: Income by way of interest other than   “Interest on securities”   
   
10   
   
10   
   
7.5   
   
Section 194B: Income by way of winnings from   lotteries, crossword puzzles, card games and other games of any sort   
   
30   
   
30   
   
30   
   
Section 194BB: Income by way of winnings from   horse races   
   
30   
   
30   
   
30   
   
Section 194C: Payment to contractor/sub-contractor
   
a) HUF/Individuals
   
b) Others   
   
1
   
2   
   
1
   
2   
   
0.75
   
1.5   
   
Section 194D: Insurance commission   
   
10   
   
10   
   
10   
   
Section 194DA: Payment in respect of the life   insurance policy   
   
5
   
(w.e.f 01.09.2015)
   
1
   
( w.e.f 01.06.2016)
   
(2% from 01.04.2015 to 31.05.2016)   
   
5   
   
3.75   
   
Section 194EE: Payment in respect of deposit under   National Savings scheme   
   
10
   
(w.e.f 01.06.2016)
   
(20% from 01.04.2015 to 31.05.2016)   
   
10   
   
7.5   
   
Section 194F: Payment on account of repurchase of   unit by Mutual Fund or Unit Trust of India   
   
20   
   
20   
   
15   
   
Section 194G: Commission, etc., on sale of lottery   tickets   
   
5
   
(w.e.f 01.06.2016)
   
(10 % from 01.04.2015 to 31.05.2016)   
   
5   
   
3.75   
   
Section 194H: Commission or brokerage   
   
5
   
(w.e.f 01.06.2016)
   
(10 % from 01.04.2015 to 31.05.2016)   
   
5   
   
3.75   
   
Section 194-I: Rent
   
a) Plant & Machinery
   
b) Land or building or furniture or fitting   
   
2
   
10   
   
2
   
10   
   
1.5
   
7.5   
   
Section 194-IA: Payment on transfer of certain   immovable property other than agricultural land
   
Section 194 – IB: Rent payable by an individual or   HUF not covered u/s. 194I (w.e.f from 01.06.2017)
   
Section 194 – IC: Payment under Joint   Development Agreements to Individual/HUF
   
(w.e.f. 01.04.2017)   
   
1
   
5
   
(w.e.f from 01.06.2017)
   
(If payment of Rent exceeds Rs. 50,000/- per month. )
   
10   
   
1
   
5
   
10   
   
0.75
   
3.75
   
7.5   
   
Section 194J: Any sum paid by way of
   
a) Fee for professional services (b) Remuneration/fee/commission to a   director (c) For not carrying out any activity in relation to any business   (d) For not sharing any know-how, patent, copyright etc.
   
e) Fee for technical services and (f) Royalty towards the sale or   distribution or exhibition of cinematographic films.   
   
10
   
2   
   
10
   
2   
   
7.5
   
1.5   
   
Section 194LA: Payment of Compensation on the   acquisition of certain immovable property   
   
10   
   
10   
   
7.5   
   
Section 194LBA: Certain income distributed by a   business trust to its unit holder   
   
10   
   
10   
   
7.5   
   
Any Other Income   
   
10   
   
10   
   
7.5   

TDS Rates Applicable for a company other than Domestic Company

   
Particulars   
   
TDS Rate (%)   
   
TDS Rates from 01.04.2020 to 13.05.2020   
   
TDS Rates from 14.05.2020 to 31.03.2021   
   
Section 194B: Income by way of winnings from   lotteries, crossword puzzles, card games and other games of any sort   
   
30   
   
30   
   
30   
   
Section 194BB: Income by way of winnings from horse   races   
   
30   
   
30   
   
30   
   
Section 194E: Payment to the non-resident sports   association   
   
20   
   
20   
   
20   
   
Section 194G: Commission, etc., on the sale of lottery   tickets   
   
5   
   
5   
   
5   
   
Section 194LB: Payment of interest on   infrastructure debt fund   
   
5   
   
5   
   
5   
   
Section 194LBA: Certain income distributed by a   business trust to its unit holder   
   
5   
   
5   
   
5   
   
Section 194LBC: Income in respect of securitization of funds   
   
40   
   
40   
   
40   
   
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)   
   
5   
   
5   
   
5   
   
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   
   
5   
   
5   
   
5   
   
Section 195: Payment of any other sum) 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   
   
10   
   
10   
   
b) Income by way of short-term capital gains referred to in Section 111A   
   
15   
   
15   
   
15   
   
c) Any other income by way of long-term capital gains [not being   long-term capital gains referred to in clauses (33), (36) and (38) of Section   10]   
   
20   
   
20   
   
20   
   
d) Income by way of interest payable by Government or an Indian concern   on money 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   
   
20   
   
20   
   
e) 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 and where such royalty is in consideration for the transfer of all or   any rights (including the granting of a license) 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   
   
10   
   
10   
   
f) Income by way of royalty [not being royalty of nature referred to in   sub-item (b)(iv)] 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   
   
10   
   
10   
   
A. where the agreement is made after the 31st day of March 1961 but   before the 1st day of April 1976.
   
where the agreement is made after the 31st day of March 1976   
   
50
   

   
10   
   
50
   

   
10   
   
50
   

   
10   
   
g) 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—   
   
   
   
   
   
   
   
A. where the agreement is made after the 29th day of February 1964 but   before the 1st day of April, 1976B.
   
where the agreement is made after the 31st day of March 1976
   
Any other income   
   
50
   

   
10
   
40   
   
50
   

   
10
   
40   
   
50
   

   
10
   
40   
   
Section 196B: Income from units (including   long-term capital gain on transfer of such units) to an offshore fund   
   
10   
   
10   
   
10   
   
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   
   
10   
   
10   
   
Section 196D: Income of foreign Institutional   Investors from securities (not being dividend or capital gain arising from   such securities)   
   
20   
   
20   
   
20   

CONCLUSION:

TDS rates differ according to the nature of payments. Payer need to be vigilant while deducting the TDS. Also need to ensure that TDS amount is deposited with government within prescribed period of time.

Show Comments