TDS Rate Chart for FY 2020-21

Through below TDS rate chart we have tried to explain TDS rates which are  applicable for financial year 2020-21. Below table provides simplified view of all the payments where TDS is applicable on payment made to resident.

S. NoSectionNature of PaymentDeductorDeducteeThreshold Limit in INRExisting RateRevised Rate*
1192Salary including perquisites, allowances etcAny EmployerAny Employee Taxable income for year   > INR 5 LakhAs per slab rateAs per slab rate
2192APayment from EPF OrganisationPF trust or EPF organisationAny Employee 50000 each withdrawal10%7.50%
3193Interest on SecuritiesAnyoneAnyone 5000 for debenture & 1000 for special bonds10%7.50%
4194Dividend other than u/s 115O (Deemed Dividend)CompanyShare Holder                   25,00010%7.50%
5194AInterest other than interest on securitiesBanksAnyone other than senior citizen                   40,00010%7.50%
6194AInterest other than interest on securitiesBanksSenior citizen                   50,00010%7.50%
7194AInterest other than interest on securitiesAnyone (other than Individual or HUF who are not liable for tax audit or banks )Anyone                     5,00010%7.50%
8194BWinnings from lottery or crossword puzzleAnyoneAnyone                   10,00030%30%
9194BBWinnings from horse raceAnyoneAnyone                   10,00030%30%
10194CPayment to contractors & sub-contractorsAnyone including Individual or HUF who are liable for tax auditIndividual or HUF 30,000 (Single bill) or 1 Lakh aggregate1%0.75%
11194CPayment to contractors and sub-contractorsAnyone including Individual or HUF who are liable for tax auditAnyone other than Individual or HUF 30,000 (Single bill) or 1 Lakh aggregate 2%1.50%
12194CPayment to Transporter Covered u/s. 44E and submit declaration in prescribed format. (i.e. owning less than 10 goods carriages)Anyone including Individual or HUF who are liable for tax auditAnyone Not applicableNilNil
13194CPayment to Transporter not
covered u/s. 44E (i.e. owning more than 10 goods carriages)
Anyone including Individual or HUF who are liable for tax auditIndividual or HUF 30,000 (Single bill) or 1 Lakh aggregate bills during the year1%0.75%
14194CPayment to Transporter not
covered u/s. 44E (i.e. owning more than 10 goods carriages)
Anyone including Individual or HUF who are liable for tax auditAnyone other than Individual or HUF 30,000 (Single bill) or 1 Lakh aggregate bills during the year2%1.50%
15194DPayment of Insurance CommissionInsurance CompanyInsurance Agent                   15,0005%3.75%
16194DAPayment in respect of life insurance policyInsurance CompanyAnyone (Policy Holder or Nominee)                1,00,0005%3.75%
17194EEPayments in respect of deposits under National Savings SchemePost officeAnyone                     2,50010%7.50%
18194FPayments on account of re-purchase of Units by Mutual Funds or UTIMutual Fund HouseAnyone Not applicable20%15%
19194GCommission, prize etc., on sale of lottery ticketsAnyoneAnyone                   15,0005%3.75%
20194HCommission or brokerageAnyone including Individual or HUF who are liable for tax auditAnyone                   15,0005%3.75%
21194-I(a)Rent of plant & machineryAnyone including Individual or HUF who are liable for tax auditAnyone                2,40,0002%1.50%
22194-I(b)Rent of immovable propertyAnyone including Individual or HUF who are liable for tax auditAnyone10%7.50%
23194-IAPayment for purchase of immovable property (Other than Agriculture Land and compulsory acquisition)AnyoneAnyone              50,00,0001%0.75%
24194-IBPayment of rent by individual or HUFIndividual or HUFAnyone 50000 Per Month5%3.75%
25194-ICPayment for Joint Development AgreementsAnyoneAnyone Not applicable10%7.50%
26194JFee for Professional ServicesAnyone including Individual or HUF who are liable for tax auditAnyone                   30,00010%7.50%
27194JTechnical Services or Royalty or payment to call centre etc.

Read amendment at https://bit.ly/2ZQAXWJ

Anyone including Individual or HUF who are liable for tax auditAnyone                   30,0002%1.50%
28194LACompensation on acquisition of immovable property (Other than Agriculture Land)AnyoneAnyone                2,50,00010%7.50%
29194LBB(i)Payment of income by Investment fundAnyoneAnyone Not applicable10%7.50%
30194LBC(1)Income by securitisation trustAnyoneIndividual or HUF Not applicable25%18.75%
31194LBC(1)Income by securitisation trustAnyoneAnyone other than Individual or HUF Not applicable30%22.50%
32194MPayment to commission, brokerage etc. (This section is applicable when 194C, 194D, 194J and 194 H is not applicable.)Individual and HUFAnyone                5,00,0005%3.75%
33194-OTDS on e-commerce https://bit.ly/3chhDEH participants (effective from 1 October 2020)

 

 

E-commerce OperatorAnyone                5,00,0001%0.75%

*Revised rate of TDS is applicable from 14th May 2020. Reduced rate of TDS will be applicable if Credit and payment is made on or after 14th May 2020.

Notes:

  1. As per section 206AA, if deductee do not furnish Permanent Account Number(PAN) to the payer (i.e., deductor), then the deductor shall deduct tax at the higher of the following rates :
    • At the rate specified in the relevant provision of the Act.
    • At the rate or rates in force, i.e., the rate prescribed in the Finance Act.
    • At the rate of 20%.

2. Above TDS rates are applicable where deductee is resident. if deductee is non-resident then above TDS rate chart will not be applicable

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Comment ( 1 )

  • Sachin Chawla

    Good elaborated article.

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