TDS (Tax Deducted at Source) was introduced to collect tax from the source of income. The deductor who is liable to make payment to another person, shall deduct the tax at the source & submit it to the central government fulfilling all the terms & conditions
Latest Update
In the latest circular issued by CBDT on 25th June 21, some extensions in the timelines for AY 21-22 are :
(i) TDS return filing due date for Q4 of the FY 2020-21 is extended from 30th June 21 to 15th July 21.
(ii) TDS Certificate furnish due date to employees in Form No. 16 is extended from 15th July 21 to 31st July 21.
TDS Rates for FY 2020-21
TDS rates after COVID-19
In view of the COVID-19 pandemic, the government announced relief in the TDS rates for the period 14.05.2020 to 31.03.2021 as the lockdown was affecting every sector of the economy. The relief was provided only to the TDS rates and not for the tax where it needs to be deducted or collected at a higher rate.
The benefit of new TDS rates only applies to Resident Indians. Hence, Non-residents cannot avail the benefits of the current TDS rates.
TDS Rates Applicable for Indian Residents
Category | TDS Rate (in%) | TDS Rates from 01-April-2020 to 13-May-2020 | TDS Rates from 14-May-2020 to 31-March-2021 |
Section 192: Payment of salary Section 192A: Premature withdrawal from EPF | Slab Rate | Slab Rate | |
Section 194B: Income through lottery winnings, crossword puzzles, card games, and other games | 30 | 30 | 30 |
Section 194BB: Income through a horse race | 30 | 30 | 30 |
Section 193: Interest on securities a) Central or State Government Securities b) Security by a local authority or a corporation established under a Central, State or Provincial Act c) Debentures issued by a company (listed on a recognized stock exchange) in accordance with the Securities Contracts (Regulation) Act, 1956, Sec 42 d) Interest on any other security | 10 | 10 | 7.5 |
Section 194C: Payment to contractor or sub-contractor. a) Individuals/HUF b) Others | 1 2 | 1 2 | 0.75 1.5 |
Section 194: Dividend other than the dividend as referred to in Section 115-O | 10 | 10 | 7.5 |
Section 194A: Income received other than the income of “Interest on securities” w.e.f 1st April 2018, interest up to Rs. 50,000 earned by senior citizens on: – deposit with post offices – deposit with banks – fixed deposits (FD) schemes – recurring deposit (RD) schemes will be exempted from TDS w.e.f 1st April 2019, the limit of income for TDS has been increased to Rs. 40,000 from 10,000, in post office & bank deposits | 10 | 10 | 7.5 |
Section 194G: Commission, tip etc., on the sale of lottery tickets | 5 (w.e.f 01.June 2016) (10 % from 01 April 2015 to 31 May 2016) | 5 | 3.75 |
Section 194LB: Payment as a commission on the acquisition of certain immovable property | 5 (w.e.f 01.June 2016) (10 % from 01 April 2015 to 31 May 2016) | 5 | 3.75 |
Section 194F: Repurchase of a unit by Unit Trust of India (UTI) or a Mutual Fund | 20 | 20 | 15 |
Section 194EE: Payment against National Savings Scheme (NSS) to a person | 10 (w.e.f 01.June 2016) (20 % from 01 April 2015 to 31 May 2016) | 10 | 7.5 |
Section 194D: Insurance commission | 5 (w.e.f 01.June 2016) (10 % from 01 April 2015 to 31 May 2016) | 5 | 3.75 |
Section 194DA: Payment against a life insurance policy | 5 (w.e.f 01.Sep.2015) 1 (w.e.f 01.Jun.2016) (2% from 01.Apr.2015 to 31.May.2016) | 5 | 3.75 |
Section 194-I: Payment as a Rent of a) Plant & Machinery b) Land or building or furniture W.e.f 01.04. 2019, TDS limit has been increased to Rs. 2,40,000 p.a from Rs.1,80,000 p.a. for deduction of tax on rent | 2 10 | 2 10 | 1.5 7.5 |
Section 194-IA: Payment against the transfer of immovable property other than agricultural land. | 1 | 1 | 0.75 |
Section 194 – IB: Payments as rent by an individual or HUF not covered u/s. 194I (w.e.f from 01. Jun.2017) | 5 (w.e.f 01.Jun.2017) (on above Rs. 50,000/- per month as rent ) | 5 | 3.75 |
Section 194 – IC: Payment under Joint Development Agreements to Individual/HUF (w.e.f. 01.Apr.2017) | 10 | 10 | 7.5 |
Section 194J: Any sum paid as a Fee for professional services | 10 | 10 | 7.5 |
Section 194J: Any sum paid as a Remuneration/ fee or commission to a director | 10 | 10 | 7.5 |
Section 194J: Any sum paid for not carrying out any activity in relation to any business | 10 | 10 | 7.5 |
Section 194J: Any sum paid for not sharing any know-how, patent, copyright etc. | 2 | 2 | 1.5 |
Section 194J: Any sum paid as a Fee for technical services | 2 | 2 | 1.5 |
Section 194J: Any sum paid as a Royalty towards the sale or distribution, or exhibition of cinematographic films | 2 | 2 | 1.5 |
Section 194 K: Payment as (a) units of a mutual fund as per section 10(23D) (b) units from the administrator (c) units from specified company (w.e.f. 01.Apr.2020) | 10 | 10 | 7.5 |
Section 194LA: Payment in respect of compensation on acquisition of certain immovable property | 10 | 10 | 7.5 |
Section 194LBA(1): Payment distributed by a business trust to its unitholder | 10 | 10 | 7.5 |
Section 194LBB: Payment against units of an investment fund to a unitholder | 10 | 10 | 7.5 |
Section 194LBC: Payments for investment in securitization fund A) Individual / HUF B)Others | 10 | 10 | 7.5 |
Section 194M: Certain payments by individuals or HUF up to Rs 50 Lakhs | 5 | 5 | 3.75 |
Section 194N: Cash payment up to Rs 1 crore | 2 | 2 | 2 |
Section 194N: Cash Payment in a. For Rs.20 lakh – Rs. 1 crore b. For above Rs. 1 crore | – | 2 5 | 2 5 |
Section 194O: For the sale of goods or provision of services by the e-commerce operator through its digital or electronic platform w.e.f. 1 Oct 2020 | 1 | – | 0.75 |
Any other income | 10 | 10 | 10 |
TDS Rates for Non-Residents of India (NRI)
Category | TDS Rate (in%) | TDS Rates from 01-April-2020 to 13-May-2020 | TDS Rates from 14-May-2020 to 31-March-2021 |
Section 192: Payment of salary Section 192A: Premature withdrawal from EPF | 10 | 10 | 10 |
Section 194B: Income through lottery winnings, crossword puzzles, card games, and other games | 30 | 30 | 30 |
Section 194BB: Income through a horse race | 30 | 30 | 30 |
Section 194E: Payment to the non-resident sportsman or an entertainer (not a citizen of India) or non-resident sports association. | 20 | 20 | 20 |
Section 194EE: Payment against National Savings Scheme (NSS) to a person | 10 | 10 | 10 |
Section 194F: Repurchase of a unit by Unit Trust of India (UTI) or a Mutual Fund | 20 | 20 | 20 |
Section 194G: Commission, tip etc., on the sale of lottery tickets | 5 | 5 | 5 |
Section 194LB: Payment as interest on infrastructure debt fund | 5 | 5 | 5 |
Section 194LBA: Income from units – interest received or receivable from a special purpose vehicle; or -Dividend referred to in Section(7) 115-O | 5 10 | 5 10 | 5 10 |
Section 194LBC: Payments for investment in securitization fund | 30 | 30 | 30 |
Section 194LC: Interest for the loan borrowed in foreign currency by an Indian company or business trust against loan agreement or against the issue of long-term bonds. | 5 | 5 | 5 |
Section 194LD: Interest on the bond in Rupees to Foreign Institutional Investors or a Foreign Investor. | 5 | 5 | 5 |
Section 194N: Cash payment upto Rs 1 crore | 2 | 2 | 2 |
Section 194N: Cash Payment in a. For Rs.20 lakh – Rs. 1 crore b. For above Rs. 1 crore | – | 25 | 25 |
Section 195: Payment of any other amount to a Non-resident | |||
a) Payment against the investment made by an NRI Citizen | 20 | 20 | 20 |
b) Payment against long-term capital gains referred to in Section 115E & Section 193 sub-clause (iii) of clause © in sub-section (1) | 10 | 10 | 10 |
c) Income for short-term capital gains as stated in Section 111A | 15 | 15 | 15 |
d) Amount received against long-term capital gains other than long-term capital gains referred to in clauses (33), (36), and (38) of Section 10 | 20 | 20 | 20 |
e) Income received as an interest by Government on money borrowed or debt incurred by Government/ Indian concern in form of foreign currency which is not referred to in Section 194LB or Section 194LC | 20 | 20 | 20 |
f) Income received as royalty by the Government in pursuance of an agreement with the Government/ Indian concern where such royalty is to transfer of all or some rights (including the granting of a license) in respect of the copyright in any book on a subject. Referred in Income Tax Act subsection (1A) of Section 115A, to the Indian concern, or any computer software referred to in the second proviso to Income Tax Act subsection (1A) of Section 115A, to a person resident in India | 10 | 10 | 10 |
g) Income received as a royalty [not being royalty of nature referred to in sub-item | 10 | 10 | 10 |
h) Income received as fees for technical services from Government/ Indian concern in an agreement made with the Government/ Indian concern. The Central Government approves the agreement or the industrial policy, for the time being in force, of the Government of India | 10 | 10 | 10 |
i) Any other income | 30 | 30 | 30 |
Section 196A: Payment received against units of a Mutual Fund referred under clause (23D) of section 10; or from the company specified in clause (35) of section 10 | 20 | 20 | 20 |
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 received from GDR of an Indian company or foreign currency bonds (including long-term capital gain and transfer of such bonds or GDR) | 10 | 10 | 10 |
Section 196D: Income- not being a dividend or capital gain but from Foreign Institutional Investors & securities | 20 | 20 | 20 |
TDS Rates for Domestic Company
Category | TDS Rate (in%) | TDS Rates from 01-April-2020 to 13-May-2020 | TDS Rates from 14-May-2020 to 31-March-2021 |
Section 193: Interest on securities a) Central or State Government Securities b) Security or debentures by a local authority or a corporation established under a Central, State, or Provincial Act c) Debentures issued by a company (listed on a recognized stock exchange) d) interest on any other security | 10 | 10 | 7.5 |
Section 194: Dividend Payment | 10 | 10 | 7.5 |
Section 194A: Income in the form of interest other than interest on securities | 10 | 10 | 7.5 |
Section 194B: Income from the lottery, card games, crossword puzzles, and any type of other games | 30 | 30 | 30 |
Section 194BB: Income through winning a horse race | 30 | 30 | 30 |
Section 194C: Payment to contractor or sub-contractor. a) Individuals/HUF b) Others | 1 2 | 1 2 | 0.75 1.5 |
Section 194D: Payment as an Insurance commission | 10 | 10 | 10 |
Section 194DA: Payment of any amount against a life insurance policy. | 5 (w.e.f 01.Sep.2015) 1 ( w.e.f 01.Jun.2016) (2% from 01.Apr.2015 to 31.May.2016) | 5 | 3.75 |
Section 194EE: Payment against National Savings Scheme (NSS) | 10 (w.e.f 01.Jun.2016) (20% from 01.Apr.2015 to 31.May.2016) | 10 | 7.5 |
Section 194F: Payment against repurchase by Unit Trust of India (UTI) or a Mutual Fund | 20 | 20 | 15 |
Section 194G: Commission, etc., on the sale of lottery tickets | 5 (w.e.f 01.Jun.2016) (10 % from 01.Apr.2015 to 31.May.2016) | 5 | 3.75 |
Section 194H: Payment as Commission or brokerage | 5 (w.e.f 01.Jun.2016) (10 % from 01.Apr.2015 to 31.May.2016) | 5 | 3.75 |
Section 194-I: Rent on a) Plant and Machinery b) Land/building/furniture/fitting | 2 10 | 2 10 | 1.5 7.5 |
Section 194-IA: Payment against the transfer of immovable property other than agricultural land. | 1 | 1 | 0.75 |
Section 194-IC: Payment for Joint Development Agreements (JDA) to Individual or HUF | 10 | 10 | 7.5 |
Section 194 – IB: Rent payable by HUF or an individual not covered u/s. 194I | 5 (w.e.f from 01.June.2017) (Rent above Rs. 50,000/-pm. ) | 5 | 3.75 |
Section 194J: Any sum paid as a Fee for professional services | 10 | 10 | 7.5 |
Section 194J: Any sum paid as a Remuneration/ fee or commission to a director | 10 | 10 | 7.5 |
Section 194J: Any sum paid for not carrying out any activity in relation to any business | 10 | 10 | 7.5 |
Section 194J: Any sum paid for not sharing any know-how, patent, copyright etc. | 10 | 10 | 7.5 |
Section 194J: Any sum paid as a Fee for technical services | 2 | 2 | 1.5 |
Section 194J: Any sum paid as a Royalty towards the sale or distribution, or exhibition of cinematographic films | 2 | 2 | 1.5 |
Section 194LA: Payment as compensation on acquisition of certain immovable property | 10 | 10 | 7.5 |
Section 194LBA(1): Payment distributed by a business trust to its unitholder | 10 | 10 | 7.5 |
Any other Income | 10 | 10 | 7.5 |
TDS Rates where a company is Non-Domestic Company
Category | TDS Rate (in%) | TDS Rates from 01-April-2020 to 13-May-2020 | TDS Rates from 14-May-2020 to 31-March-2021 |
Section 194B: Income from the lottery, card games, crossword puzzles, and any type of other games | 30 | 30 | 30 |
Section 194BB: Income through winning a horse race | 30 | 30 | 30 |
Section 194E: Payment to non-resident sports association. | 20 | 20 | 20 |
Section 194G: Commission, tip, etc., on the sale of lottery tickets | 5 | 5 | 5 |
Section 194LBA: Payment distributed to unitholders by business trust | 5 | 5 | 5 |
Section 194LBC: Income from investment in securitization fund | 40 | 40 | 40 |
Section 194LC: Interest for the loan borrowed in foreign currency by an Indian company or business trust against loan agreement or against the issue of long-term bonds. | 5 | 5 | 5 |
Section 194LD: Interest on the bond in Rupees to Foreign Institutional Investors or a Foreign Investor | 5 | 5 | 5 |
Section 195: Payment of any other amount to a Non-resident | |||
a) Payment against long-term capital gains referred to in Section 112 sub-clause (iii) of clause (c) in sub-section (1) | 10 | 10 | 10 |
b) Income for short-term capital gains as stated in Section 111A | 15 | 15 | 15 |
c) Amount received against long-term capital gains other than long-term capital gains referred to in clauses (33), (36), and (38) of Section 10 | 20 | 20 | 20 |
d) Income received as royalty by the Government in pursuance of an agreement with the Government/ Indian concern where such royalty is to transfer of all or some rights (including the granting of a license) in respect of the copyright in any book on a subject. Referred in Income Tax Act subsection (1A) of Section 115A, to the Indian concern, or any computer software referred to in the second proviso to Income Tax Act subsection (1A) of Section 115A, to a person resident in India | 10 | 10 | 10 |
e) Income received as a royalty [not being royalty of nature referred to in sub-item (b)(iv)] from Government as an agreement made with the Government/ Indian concern and where such agreement is with an Indian concern. In this case, the agreement is approved by the Central Government or 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. if the agreement is made between 31st March 1961 – 1st April 1976. B. if the agreement is made after the 31st March 1976 | 50 10 | 50 10 | 50 10 |
f) Income received as a fee for technical services from Government/ Indian concern in an agreement made with the Government/ Indian concern. The Central Government approves the agreement or the industrial policy, for the time being in force, of the Government of India | |||
A. If the agreement between 29th February 1964 -1st April 1976 B. if the agreement is made after the 31st March 1976 | 50 10 | 50 10 | 50 10 |
g) Any other income | 40 | 40 | 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 received from GDR of an Indian company or foreign currency bonds (including long-term capital gain and transfer of such bonds or GDR) | 10 | 10 | 10 |
Section 196D: Income- not being a dividend or capital gain but from Foreign Institutional Investors & securities | 20 | 20 | 20 |
