In my earlier post on TDS Compliances, I have shared what TDS was all about. When it is required to deduct? What are its due dates?
Now, in this post I would like to share the Section wise TDS rates and the threshold limit thereon for TDS deduction in FY 2020-21.
In order to meet out economic situation arising out of Covid-19 pandemic, the TDS rates for certain non-salaried payments made to residents is reduced by 25% for the period from 14th May, 2020 to 31st March, 2021.
TDS CHART FOR FY 2020-21
| 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 | 30000 | ||||
| transaction-Individual/HUF | 1 | – | 0.75 | – | ||
| -Others | 2 | – | 1.5 | – | ||
| 194C | Contractor – Consolidated Payment During the F.Y. | 100000 | ||||
| – Individual/HUF | 1 | – | 0.75 | – | ||
| – Others | 2 | – | 1.5 | – | ||
| 194D | Insurance commission | 15000 | 5 | – | 3.75 | – |
| 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 | 240000 | 2 | – | 1.5 | – |
| – Land and Building/Furniture & Fixture | 10 | – | 7.5 | – | ||
| 194IA | Transfer of immovable property not being 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 | 5000 | 10 | – | 7.5 | – |
| (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) | ||||||
| 194LA | Compensation on transfer of immovable property not being agriculture land | 250000 | 10 | – | 7.5 | – |
| 194LB | Income from interest on infrastructure debt fund | – | – | 5 | – | 5 |
| 194LBA | Income from units of business trust | – | ||||
| – interest received/receivable from a special purpose vehicle (SPV); or | 10 | 5 | 7.5 | 5 | ||
| – dividend as referred in section 115-O (7) | 10 | 10 | 7.5 | 10 | ||
| 194LBA | Distribution of rental income to unit holders | – | ||||
| – Other than Comapany | 10 | 30 | 7.5 | 30 | ||
| – Company | 10 | 40 | 7.5 | 40 | ||
| 194LBB | Income in respect of units of investment fund | – | ||||
| – Other than Company | 10 | 30 | 7.5 | 30 | ||
| – Company | 10 | 40 | 7.5 | 40 | ||
| 194LBC | Income in respect of investment in securitization fund | – | ||||
| – Individual/HUF | 25 | 30 | 18.75 | 30 | ||
| – Company | 30 | 40 | 22.5 | 40 | ||
| – Other Person | 30 | 30 | 22.5 | 30 | ||
| 194LC | Income from 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 | N.A. | N.A. | 2 | 2 | ||
| – Amount exceeds Rs. 1 crore (Applicable from 01.07.2020) | N.A. | N.A. | 5 | 5 | ||
| 194-O | Applicable for e-commerce operator | 1 | – | 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 | – | 10 | – | 10 | ||
| – Any Other Gains | – | 20 | – | 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 | – | – | 30 | – | 30 |
| – Company | – | 40 | – | 40 | ||
| 196A | Income in respect – | – | – | 20 | – | 20 |
| – of units of a Mutual Fund specified under section 10 (23D); or | ||||||
| – from the specified company referred to in the Explanation to clause (35) of section 10 | ||||||
| 196B | Income from units to an offshore fund | – | – | 10 | – | 10 |
| 196C | Income from foreign currency bonds or Global Deposits Receipts (GDR) of an Indian company | – | – | 10 | – | 10 |
| 196D | Income of foreign Institutional Investors from securities (other than dividend or capital gain) | – | – | 20 | – | 20 |