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

Tax Deducted at Source (TDS) is a mechanism that has been introduced by the Income Tax Department. Under this, the responsible person is supposed to deduct a certain percentage of income as tax before making the payment to the receiver. The payment includes salary, commission, professional fees, interest, rent, etc.

FY 2019-20 TDS Rate Chart

Due to Covid-19 situation, the rates of TDS on payments made to resident Indians have been reduced by 25% for the period starting from 14th May 2020 to 31st March 2021. However, there shall be no reduction in rates, where tax is required to be deducted or collected at a higher rate due to the non-furnishing of PAN/Aadhaar.

Now, let’s have a look at the TDS/TCS Rates applicable for the financial year 2020-21 as per Press Release issued by Ministry of Finance dated 13th May 2020:

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

SectionNature of paymentThreshold LimitApplicable from 01/04/2020 to 13/05/2020Applicable from 14/05/2020 to 31/03/2021
   ResidentNon-resident *ResidentNon-resident *
  Rs. TDS Rate (%)TDS Rate (%)TDS Rate (%)TDS Rate (%)
192SalariesNormal slab rateNormal slab rateNormal slab rateNormal slab rate
192APremature withdrawal from EPF5000010101010
193Interest on securities – 8% Savings (Taxable) Bonds, 2003 or 7.75% Savings (Taxable) Bonds, 2018 during the financial year10000107.5
193Interest 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 securities5000107.5
194Dividends5000107.5
194AInterest (Banking co., co-operative society engaged in banking, post office)40000107.5
194AInterest (Any other person)5000107.5
194BWinning from lotteries1000030303030
194BBWinning from Horse race1000030303030
194CContractor-Single30000    
transaction-Individual/HUF10.75
           -Others21.5
194CContractor – Consolidated Payment During the F.Y.100000    
– Individual/HUF    
– Others10.75
 21.5
194DInsurance commission15000    
– Other than Company53.75
– Company1010
194DAMaturity of Life insurance policy10000053.75
194ENon-resident sportsmen or sports association2020
194EENSS250010107.510
194FRepurchase units by MFs20201520
194GCommission-Lottery15000553.755
194HCommission/Brokerage1500053.75
194IRent of – Plant/Machinery /Equipment24000021.5
– Land and Building/Furniture & Fixture107.5
194IATransfer of certain immovable property other than agriculture land50 lakh10.75
194IBRent by Individual/HUF50000 per month53.75
194ICPayment under Joint Development Agreements to Individual/HUF107.5
194JProfessional Fees30000107.5
194JTechnical Fees (w.e.f. 01.04.2020)3000021.5
194JPayment to call center operator (w.e.f. 01.06.2017)3000021.5
194JDirector’s fees107.5
194KPayment of any income in respect of5000107.5
(a) units of a mutual fund as per section 10(23D); or
(b) the units from the administrator; or
(c) units from a specified company
(w.e.f. 01.04.2020)
194LACompensation on the transfer of certain immovable property other than agriculture land250000107.5
(TDS exempted if covered under RFCTLARR Act w.e.f. 01.04.2017)
194LBIncome by way of interest from infrastructure debt fund55
194LBAIncome from units of business trust    
– interest received or receivable from a special purpose vehicle; or1057.55
– dividend referred to in sub-section (7) of section 115-O    
 10107.510
194LBADistribution of rental income to unitholders    
– Other than Company    
– Company10307.530
 10407.540
194LBBIncome in respect of units of investment fund    
– Other than Company    
– Company10307.530
 10407.540
194LBCIncome in respect of investment in securitization fund    
– Individual/HUF    
– Company253018.7530
– Other Person304022.540
 303022.530
194LCIncome 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 India55
194LCIncome by way of interest by an Indian specified company on a 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 Centre44
194LDInterest on certain bonds from Govt. securities55
194MCertain payments by Individual/HUF50 lakh53.75
194NPayment of a certain amount in cash1 Crore2222
194NPayment of certain amount in cash (first proviso of section 194N)if-     
–  The 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.22
     
 N.A.N.A.55
194-OApplicable 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.A0.75
195The income of Investment made by an NRI2020
195Long-term capital gain    
– Under Section – 115E/    
112(1)(c)(iii)/112A1010
– Any Other Gains2020
195Short-term capital gain – 111A1515
195Royalty1010
195Fees for technical services1010
195Interest income payable by Govt./Indian concern (other than section 194LB or 194LC)2020
195Any Other Income – Other than Company3030
                 – Company    
 4040
196AIncome in respect –2020
– 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
196BIncome from units to an offshore fund1010
196CIncome from foreign currency bonds or GDR of an Indian company1010
196DThe income of Foreign Institutional Investors from securities (not being dividend or capital gain)2020

* 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.

Section

Nature of payment

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

TCS Rate (%)

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

TCS Rate (%)

206C

Scrap

1

0.75

206C

Tendu leaves

5

3.75

206C

Timber obtained under a forest lease or other mode

2.5

1.875

206C

Any other forest produce not being a timber or tendu leaves

2.5

1.875

206C

Alcoholic liquor for human consumption and Indian made foreign liquor

1

1

206C

Parking lot, toll plaza, mining and quarrying (other than mining and quarrying of mineral oil, petroleum and natural gas)

2

1.5

206C

Minerals, being coal or lignite or iron ore

1

0.75

206C

Sale of motor vehicle of the value exceeding Rs. 10 Lacs

1

0.75

206C

Remittance out of India under the Liberalized Remittance Scheme of the RBI of the value exceeding 7 Lacs in a financial year (Applicable from 01.10.2020) – TCS will be charged on excess amount over 7 lacs

N.A.

5

206C

Sale of overseas tour program package (Applicable from 01.10.2020)

N.A.

5

206C

Remittance out of India for education under the Liberalized Remittance Scheme of the RBI of the value exceeding 7 Lacs in a financial year (Applicable from 01.10.2020) – TCS will be charged on excess amount over 7 lacs

N.A.

0.5

206C

Sale of any goods (other than goods exported out of India or goods given in the above points) of the value exceeding 50 Lacs (Applicable from 01.10.2020) – TCS will be charged on excess amount over 50 lacs

N.A.

0.075

Note: In case of non-furnishing of PAN/Aadhaar by collectee, TCS will be charged at twice of the normal rate applicable or 5% {1% in case of sale of any goods (given in the last point) of the value exceeding 50 Lacs}, whichever is higher.

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