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What is TDS
TDS stands for Tax Deducted at Source. This is a mechanism for collecting direct tax at the time of payment. The income tax department introduced this mechanism for direct tax collection like Salary, Rent, Commission, Professional and Technical, Contractor, Interest, etc.
TDS Rates and Threshold Limit for FY 2020-21
| Section | Nature of Payment | Threshold Limit for deduction tax | Rate of TDS applicable for the period or Basic Cut off (Individual New Rate %) | Rate of TDS applicable for the period or Basic Cut off (Company New Rate %) | Rate of TDS applicable for the period or Basic Cut off (Others New Rate %) | Rate of TDS applicable for the period (No Pan or Invalid Pan) |
|---|---|---|---|---|---|---|
| Individual | Company | Other | No Pan or Invalid PAN (Rate) | |||
| 192 | Salary | As per Slab [Please note that no Change in Slab Rates have been introduced for FY 2021-22] | Slab Rates | Slab Rates | – | 30 |
| 192A | Premature withdrawal from Employee Provident Fund (Payment of accumulated balance of provident fund which is taxable in the hands of an employee) | Rs. 50000.00 | 10 | NA | NA | 20 |
| 193 | Interest on securities | Rs. 2500.00 | 10 | 10 | – | 20 |
| 194 | Dividend other than the dividend as referred to in Section 115-O | Rs. 5000.00 | 10 | 10 | – | 20 |
| 194A | Interest other than interest on securities – Banks Time deposits, Recurring deposit and Deposit in Co-op Banks | · Senior Citizen Rs. 50000.00 | 10 | – | – | 20 |
| · Others Rs. 40000.00 | ||||||
| 194B | Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort | Rs. 10000.00 | 30 | 30 | 30 | |
| 194BB | Income by way of winnings from horse races | Rs. 10000.00 | 30 | 30 | 30 | |
| 194 C | Payment to Contractors | · Single payment : Rs. 30,000 | 1 | 2 | 20 | |
| · Aggregate payment: Rs. 100000 | ||||||
| 194C | Contract – Transporter not covered under 44AE | · Single payment : Rs. 30,000 | 1 | 2 | 20 | |
| · Aggregate payment: Rs. 75000 | ||||||
| 194 – D | Insurance commission | Rs. 15000.00 | 5 | 10 | – | 20 |
| 194 -DA | Payment in respect of life insurance policy, the tax shall be deducted on the amount of income comprised in insurance pay -out | Rs. 100000 | 5 | 5 | – | 20 |
| 194 – E | Payment to non -resident sportsmen/ sports association | 20 | 20 | – | 20 | |
| 194 -EE | Payment in respect of deposit under National Savings scheme | Rs. 2500.00 | 10 | 10 | – | 20 |
| 194 -EE | Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India | 20 | 20 | – | 20 | |
| 194 – G | Commission on sale of lottery tickets | Rs. 15000.00 | 5 | 5 | – | 20 |
| 194 – H | Commission or brokerage | Rs. 15000.00 | 5 | 5 | – | 20 |
| 194 – I | RENT | |||||
| 194 -I(a) Plant & Machinery | Rs. 240000.00 | 2 | 2 | – | 20 | |
| 194 -I(b) Land or building or furniture or fitting | Rs. 240000.00 | 10 | 10 | – | 20 | |
| 194 -IA | Transfer of certain immovable property other than agriculture land | Rs. 50,00,000.00 | 1 | 1 | – | 20 |
| 194 -IB | Payment of Rent by Individuals or HUF not liable for Tax Audit | Rs. 50,000 per month | 5 | – | – | 20 |
| 194 -IC | Payment of monetary consideration under Joint Development Agreements | – | 10 | 10 | – | 20 |
| 194 -J | Fees for professional or technical services: Fees for professional or technical services. If recipient is engaged in business of operation of call Centre If sum is payable towards fees for technical services (other than professional services) | Rs. 30000 | 2 | 2 | – | 20 |
| In all other cases | Rs. 30000 | 10 | 10 | – | 20 | |
| 194 – K | Payment of any income in respect of Units of Mutual fund as per section 10(23D) or Units of administrator or from a specified company | – | 10 | 10 | – | 20 |
| 194 -LA | TDS on compensation for compulsory acquisition of immovable Property | Rs. 2,50,000.00 | 10 | 10 | – | 20 |
| 194 – LBA(1) | Business trust shall deduct tax while distributing, any interest received or receivable by it from a SPV or any income received from renting or leasing or letting out any real estate asset owned directly by it, to its unit holders | – | 10 | 10 | – | 20 |
| 194 – LBA(2) | Distribution of, any interest received or receivable from SPV by Business trust | – | ||||
| 194 – LBA(3) | Distribution of, any income received from renting or leasing or letting out any real estate asset owned directly by Business trust | – | ||||
| 194 -LB | Payment of interest on infrastructure debt fund to Non Resident | – | 5 | 5 | – | 20 |
| 194 -LBB | Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)] | 10 | 10 | – | 30 | |
| 194 -LBC | Income in respect of investment made in a securitization trust (specified in Explanation of section 115TCA) | 25 | 10 | – | 30 | |
| 194 – M | Payment of commission, brokerage, contractual fee, professional fee to a resident person by an Individual or a HUF who are not liable to deduct TDS under section 194C, 194H, or 194J. | Rs. 50,00,000.00 | 5 | 5 | – | 20 |
| 194 – N | Cash withdrawal | 20 | ||||
| 194 – O | Applicable for E -Commerce operator for sale of goods or provision of service facilitated by it through its digital or electronic facility or platform. | Rs.5,00,000.00 | 1 | 1 | – | 20 |
| 194 – Q | Purchase of goods (applicable w.e.f 01.07.2021) | Rs 50,00,000.00 | 0.1 | 0.1 | – | – |
| 195 | Payment of any other sum to a Non -resident | |||||
| 194 – P | TDS on Senior Citizen above 75 Years | |||||
| 206 -AB | TDS on non -filers of ITR |
Disclaimer:- TDS Rates and Threshold Limit for FY 2020-21 are subject to amendments from time to time.
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