TDS Provisions for FY 1920 & 2021
My Dear readers, followers, taxpayers & clients,
Welcome to my blog. Get yourself update with changes in tax structures.
Today, let's see about TDS (Tax Deducted at Source). There are lot of sections and provisions of TDS. But for general knowledge, I am writing some of the important sections and provisions. I am picking up some sections and provisions which were commonly used by people. I have divided this into 2 parts one is Resident People and another is Non Resident people. You may skip the non resident part in this blog. I have given non resident part for my Non resident readers and viewers.
TDS Rate Chart For Financial year 2019-20 and Financial year 2020-21
Particulars
|
TDS Rates (in %)
(FY 2019-20)
|
TDS Rates (in %)
(FY 2020-21)
|
A. In the case of a person other than a company
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1. where the person is RESIDENT in India-
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Section 192: Payment of salary
|
Normal Slab Rate
|
Normal Slab Rate
|
Section 192A: Payment of accumulated balance of provident fund which is taxable in the hands of an employee.
(Monetary Limit – Rs 50,000)
|
10
|
10
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Section 193: Interest on securities
|
10
|
10
|
Section 194A: – Interest other than interest on securities – Others
(Monetary Limit – Rs 5,000)
|
10
|
10
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Section 194A: Banks / Co-operative society engaged in business of banking / Post Office
(Monetary Limit – Rs 40,000)
|
10
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10
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Section 194A: Senior citizen
From FY 2018-19 onwards no TDS will be deducted on interest earned upto INR 50,000 by senior citizens. The interest amount should be earned from the following:
· Deposits with banks;
· Deposits with post offices
· Fixed deposit schemes
· Recurring deposit schemes
(Monetary Limit – Rs 50,000)
|
10
|
10
|
Section 194C: Payment to contractor/sub-contractor (Monetary Limit – Rs 30,000 per contract or Rs 1,00,000 for aggregate amount during the year)
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a) HUF/Individuals
|
1
|
1
|
b) Others
|
2
|
2
|
Section 194EE: Payment in respect of deposit under National Savings scheme
(Monetary Limit – Rs 2,500)
|
10
|
10
|
Section 194F: Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India
|
20
|
20
|
Section 194H: Commission or brokerage
(Monetary Limit – Rs 15,000)
|
5
|
5
|
Section 194-I: Rent
(Monetary Limit – Rs 2,40,000)
| ||
a) Plant & Machinery
|
2
|
2
|
b) Land or building or furniture or fitting
|
10
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10
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Section 194-IA: Payment on transfer of certain immovable property other than agricultural land
(Monetary Limit – Consideration exceeding Rs 50,00,000)
|
1
|
1
|
Section 194-IB: Payment of rent by individual or HUF not liable to tax audit
(Monetary Limit – Rent for the month or part of the month exceeds Rs 50,000)
Note: This provision is applicable from June 1, 2017
|
5
|
5
|
Section 194J: Payment for fees for Technical services, Professional services or royalty etc.
(Monetary Limit –Rs 30,000 p.a)
| ||
a) In case of fees for any other professional services
|
10
|
10
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b) In case the payee fails to furnish PAN
|
20
|
20
|
Section 194K: Payment of any income in respect of
a) Units of a Mutual Fund as per Section 10(23D)
b) Units from the administrator
c) Units from specified company
(This Section is inserted by Finance Act, 2020 which is applicable from 01/04/2020)
|
N.A.
|
10
|
Section 194LA: Payment of compensation on acquisition of certain immovable property
(Monetary Limit –Rs 2,50,000 p.a.)
Note: With effect from April 1, 2017, no deduction of tax shall be made on any payment which is exempt from levy of income-tax under Right to Fair Compensation Act, 2013.
|
10
|
10
|
Section 194N:
a) Filed the returns of income for all of the three assessment years relevant to the three previous years and cash withdrawals exceeding 1 cr
|
2
|
2
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b) Not Filed the returns of income for all of the three assessment years relevant to the three previous years: (This provision is applicable w.e.f. 01 July, 2020)
· Cash withdrawals from 20 Lakhs to 1 Cr
|
NA
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2
|
· Cash withdrawals exceeding 1 cr
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NA
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2% till 30 June, 2020 and 5% from 01 July, 2020
|
2. where the person is not resident in India@@-
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(@@ see note)
|
(@@ see note)
|
Section 192: Payment of Salary
|
Normal Slab Rate
|
Normal Slab Rate
|
Section 192A: Payment of accumulated balance of provident fund which is taxable in the hands of an employee.
(Monetary Limit – Rs 50,000)
|
10.4
|
10.40
|
Section 194EE: Payment in respect of deposits under National Savings Scheme.
(Monetary Limit – Rs 2,500)
|
10.4
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10.4
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Section 194F: Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India
|
20.80
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20.80
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Section 194LB: Payment of interest on infrastructure debt fund
|
5.20
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5.20
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Section 194LBB: Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)].
|
31.20
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31.20
|
Section 194LD: Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor
Note: Now TDS at concessional rate of 5% will be applicable for borrowings made after April 1, 2020 but before July 1, 2023.
|
5.20
|
5.20
|
Section 195: Payment of any other sum to a Non-resident
| ||
a) Income in respect of investment made by a Non-resident Indian Citizen
|
20.80
|
20.80
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b) Income by way of long-term capital gains referred to in Section 115E in case of a Non-resident Indian Citizen
|
10.40
|
10.40
|
c) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-Section (1) of Section 112
|
10.40
|
10.40
|
d) Income by way of long-term capital gains as referred to in Section 112A
|
10.40
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10.40
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e) Income by way of short-term capital gains referred to in Section 111A
|
15.60
|
15.60
|
f) Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses 10(33), 10(36) and 112A
|
20.80
|
20.80
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k) Any other income
|
31.20
|
31.20
|
B. In the case of a company-
| ||
1. where the company is a Domestic Company-
| ||
Section 193: Interest on securities
|
10
|
10
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Section 194: Dividend
|
10
(Monetary Limit – Rs 2,500)
|
10
(Monetary Limit – Rs 5,000)
(w.e.f. 01/04/2020)
|
Section 194A: – Interest other than interest on securities – Others
(Monetary Limit – Rs 5,000)
|
10
|
10
|
Section 194A: Banks / Co-operative society engaged in business of banking / Post Office
(Monetary Limit – Rs 40,000)
|
10
|
10
|
Section 194C: Payment to contractor/sub-contractor
(Monetary Limit – Rs 30,000 per contract or Rs 1,00,000 for aggregate amount during the year)
| ||
a) HUF/Individuals
|
1
|
1
|
b) Others
|
2
|
2
|
Section 194D: Insurance commission
(Monetary Limit – Rs 15,000)
|
10
|
10
|
Section 194DA: Payment in respect of life insurance policy w.e.f. 1/9/2019, the tax shall be deducted on the amount of income comprised in insurance pay-out
(Monetary Limit – Rs 1,00,000)
|
5
|
5
|
Section 194EE: Payment in respect of deposit under National Savings scheme
(Monetary Limit – Rs 2,500)
|
10
|
10
|
Section 194F: Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India
|
20
|
20
|
Section 194H: Commission or brokerage
(Monetary Limit – Rs 15,000)
|
5
|
5
|
Section 194-I: Rent
(Monetary Limit – Rs 2,40,000)
| ||
a) Plant & Machinery
|
2
|
2
|
b) Land or building or furniture or fitting
|
10
|
10
|
Section 194-IA: Payment on transfer of certain immovable property other than agricultural land (Monetary Limit – Consideration exceeding Rs 50,00,000)
|
1
|
1
|
Section 194-IC: Payment of monetary consideration under Joint Development Agreements
|
10
|
10
|
Section 194J: Payment for fees for Technical services, Professional services or royalty etc.
(Monetary Limit –Rs 30,000 p.a)
| ||
a) Cases, wherein, the payee is engaged in the business of the operation of Call Centre only (effective from 1st June 2017)
|
2
|
2
|
b) In case of fees for technical services (not being a professional royalty where such royalty is in the nature of consideration for sale, distribution or exhibition of cinematographic film) (effective from 1st April 2020)
|
NA
|
2
|
c) In case of fees for any other professional services
|
10
|
10
|
d) In case the payee fails to furnish PAN
|
20
|
20
|
Section 194K: Payment of any income in respect of
d) Units of a Mutual Fund as per Section 10(23D)
e) Units from the administrator
f) Units from specified company
(This Section is inserted by Finance Act, 2020 which is applicable from 01/04/2020)
|
N.A.
|
10
|
Section 194LA: Payment of compensation on acquisition of certain immovable property
(Monetary Limit –Rs 2,50,000 p.a.)
Note: With effect from April 1, 2017, no deduction of tax shall be made on any payment which is exempt from levy of income-tax under Right to Fair Compensation Act, 2013.
|
10
|
10
|
Section 194N:
a) Filed the returns of income for all of the three assessment years relevant to the three previous years and cash withdrawals exceeding 1 cr
|
2
|
2
|
b) Not Filed the returns of income for all of the three assessment years relevant to the three previous years: (This provision is applicable w.e.f. 01 July, 2020)
· Cash withdrawals from 20 Lakhs to 1 Cr
|
NA
|
2
|
· Cash withdrawals exceeding 1 cr
|
NA
|
2% till 30 June, 2020 and 5% from 01 July, 2020
|
2. where the company is not a domestic company@@-
|
(@@ see note)
|
(@@ see note)
|
Section 194LB: Payment of interest on infrastructure debt fund
|
5.20
|
5.20
|
Section 194LBB: Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)].
|
41.6
|
41.6
|
Section 194LBC: Income in respect of investment made in a securitisation trust (specified in Explanation of section115TCA)
|
41.6
|
41.6
|
Section 195: Payment of any other sum
| ||
a) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-section (1) of Section 112
|
10.40
|
10.40
|
b) Income by way of long-term capital gains as referred to in Section 112A
|
10.40
|
10.4
|
c) Income by way of short-term capital gains referred to in Section 111A
|
15.60
|
15.60
|
d) Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses 10(33), 10(36) and 112A
|
20.80
|
20.80
|
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