Before checking TDS rate, let’s first understand what is TDS?
TDS is acronym of Tax Deducted at Source. When you offer a ‘prasaad’ in the place of pilgrimage, have you observed, they slice out a piece of it before you can take it with you? Later they also give it back yo you.
Same principle! The one making certain payments also needs to slices out a part of the payment and credit it into the government’s account. That amount gets credited in the deductee’s Permanent Account Number, and the deductee can adjust it with his tax payable or claim refund later. Simple!
It is mandatory for those liable to deduct TDS to credit TDS and file quarterly TDS return before due date, violating which, invites interests and penalties. Tax shall be paid at the rates prescribed by the government.
Whenever you forget what rate of TDS to use, just use this TDS rate chart for help.
Here are your rates of TDS for FY 2020-21:
TDS Rate Chart for F.Y. 2020-21 (A.Y: 2021-22)
| Section | Nature of payment | Threshold Limit | Resident | Non-resident* |
|---|---|---|---|---|
| Rs. | TDS Rate (%) | TDS Rate (%) | ||
| 192 | Salaries | – | Normal slab rate | Normal slab rate |
| 192A | Premature withdrawal from EPF | 50000 | 10 | 10 |
| 193 | Interest on securities – 8% Savings (Taxable) Bonds, 2003 or 7.75% Savings (Taxable) Bonds, 2018 during the financial year | 10000 | 10 | – |
| 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 | – |
| 194 | Dividends | 5000 | 10 | – |
| 194A | Interest (Banking co., co-operative society engaged in banking, post office) | 40000 | 10 | – |
| 194A | Interest (Any other person) | 5000 | 10 | – |
| 194B | Winning from lotteries | 10000 | 30 | 30 |
| 194BB | Winning from Horse race | 10000 | 30 | 30 |
| 194C | Contractor-Single transaction-Individual/HUF -Others | 30000 | 1 2 | – – |
| 194C | Contractor – Consolidated Payment During the F.Y. – Individual/HUF – Others | 100000 | 1 2 | – – |
| 194C | Transporter (44AE) declaration with PAN | – | – | – |
| Section | Nature of payment | Threshold Limit | Resident | Non-resident* |
|---|---|---|---|---|
| Rs. | TDS Rate (%) | TDS Rate (%) | ||
| 194D | Insurance commission – Other than Company – Company | 15000 | 5 10 | – – |
| 194DA | Maturity of Life insurance policy | 100000 | 5 | – |
| 194E | Non-resident sportsmen or sports association | – | – | 20 |
| 194EE | NSS | 2500 | 10 | 10 |
| 194F | Repurchase units by MFs | – | 20 | 20 |
| 194G | Commission-Lottery | 15000 | 5 | 5 |
| 194H | Commission/Brokerage | 15000 | 5 | – |
| 194I | Rent of – Plant/Machinery/Equipment – Land and Building/Furniture & Fixture | 240000 | 2 10 | – – |
| 194IA | Transfer of certain immovable property other than agriculture land | 50 lakh | 1 | – |
| 194IB | Rent by Individual/HUF | 50000 per month | 5 | – |
| 194IC | Payment under Joint Development Agreements to Individual/HUF | – | 10 | – |
| 194J | Professional Fees | 30000 | 10 | – |
| 194J | Technical Fees (w.e.f. 01.04.2020) | 30000 | 2 | – |
| 194J | Payment to call centre operator (w.e.f. 01.06.2017) | 30000 | 2 | – |
| 194J | Director’s fees | – | 10 | – |
| 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 | – |
| 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 | – |
| 194LB | Income by way of interest from infrastructure debt fund | – | – | 5 |
| 194LBA | Income from units of business trust | – |
| Section | Nature of payment | Threshold Limit | Resident | Non-resident* |
|---|---|---|---|---|
| Rs. | TDS Rate (%) | TDS Rate (%) | ||
| – 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 | |
| 194LBA | Distribution of rental income to unit holders – Other than Comapany – Company | – | 10 10 | 30 40 |
| 194LBB | Income in respect of units of investment fund – Other than Company – Company | – | 10 10 | 30 40 |
| 194LBC | Income in respect of investment in securitization fund – Individual/HUF – Company – Other Person | – | 25 30 30 | 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 |
| 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 |
| 194LD | Interest on certain bonds from Govt. securities | – | – | 5 |
| 194M | Certain payments by Individual/HUF | 50 lakh | 5 | – |
| 194N | Payment of certain amount in cash | 1 Crore | 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 | 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 (w.e.f. 01.04.2020) | – | 1 | – |
| 195 | Income of Investment made by an NRI | – | – | 20 |
| 195 | Long-term capital gain – Under Section – 115E/112(1)(c)(iii)/112A – Any Other Gains | – | – – | 10 20 |
| Section | Nature of payment | Threshold Limit | Resident | Non-resident* |
|---|---|---|---|---|
| Rs. | TDS Rate (%) | TDS Rate (%) | ||
| 195 | Short-term capital gain – 111A | – | – | 15 |
| 195 | Royalty | – | – | 10 |
| 195 | Fees for technical services | – | – | 10 |
| 195 | Interest income payable by Govt./Indian concern (other than section 194LB or 194LC) | – | – | 20 |
| 195 | Any Other Income – Other than Company – Company | – | – – | 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 |
| 196B | Income from units to an offshore fund | – | – | 10 |
| 196C | Income from foreign currency bonds or GDR of an Indian company | – | – | 10 |
| 196D | Income of foreign Institutional Investors from securities (not being interest referred to in section 194LD, not being dividend referred in section 115-O, not being capital gain from transfer of securities referred in section 115AD) | – | – | 20 |
* Individuals/HUF liable for tax audit in the last financial year have to deduct TDS, while making payment to contractors. If contract is for personal purposes of individual/HUF, then no TDS to be deducted.
** TDS not applicable for individuals/HUF not liable to tax audit.
- Where the tax is deducted and paid to a Non-Resident/ Foreign Company, further additional E.Cess .2% & S.H.E Cess.1% of income tax.
- TDS has to be deducted at the time of payment or crediting the account whichever is earlier.
- The TDS not made within due dates will attract interest @ 1% for every month or part thereof from the due date of deduction till the actual date of deduction.
- The TDS not paid within due dates will attract interest @ 1.5% for every month or part thereof from the date of deduction till the date of payment.
- If the receiver (Deductee) has not provided the Permanent Account Number (PAN), the rate of TDS is 20% irrespective of the category & section.
