05-May-2020 TDS Rates for FY 2020-21- AY 2021-22
Tax Deducted at Source (TDS) is a mechanism that has been introduced by the Income Tax Department. Under this, the responsible person is supposed to deduct a certain percentage of income as tax before making the payment to the receiver. The payment includes salary, commission, professional fees, interest, rent, etc. On 01st February 2020, the Finance Minister Nirmala Sitharaman presented the Union Finance Budget, 2020.
Finance Minister has presented UnionFfinance Budget on 1st February 2020. Through the budget FM has made various changes in TDS provisions and
introduces a couple of new section i.e. Section 194K– Income in respect of units,
Section 194N – Payment of a certain amount in cash and Section 194O - Payment of
certain sums by the e-commerce operator to e-commerce participant. Further certain
existing provisions are also being amended.
Now, the TDS provisions are applicable in case of Individual
or HUF, whose total sale, turnover or gross receipts exceeds one crore rupees in
case of business or fifty lakh rupees in case of the profession during the
Financial Year immediately preceding the Financial Year in which below
transactions are credited or paid to the payee. Earlier many provisions were
subject to audit applicability which is rationalized for all TDS provisions.
The TDS rate’s for FY 2020-21 is detailed below:
|
Section |
Particular |
Individual /HUF |
Domestic Company |
|
|
192 |
Payment of Salary |
*refer note 1 |
-- |
|
|
194 |
Dividend on shares (Monetary Limit - Rs.5,000 p.a. only
if paid to Individuals) |
10% |
10% |
|
|
194A |
Interest other than Interest on
Securities (Monetary Limit -Rs.40,000/- p.a.) |
10% |
10% |
|
|
194B |
Income by way of Winnings from
lotteries or crossword puzzle (Monetary Limit -Rs.10000/-) |
30% |
31.20% |
|
|
194BB |
Winnings from Horse races (Monetary Limit -Rs.10000/-) |
30% |
31.20% |
|
|
194C |
Payment to Contractor / Sub
Contractor - (Monetary Limit -Rs.30,000pertransactionor Rs.1,00,000/- for
aggregate amount during the year) |
|||
|
a)
Individual / HUF |
1% |
2% |
||
|
b)
Other than Individual / HUF |
1% |
2% |
||
|
194D |
Insurance Commission (Monetary Limit Rs.15000/- p.a.) |
5% |
5% |
|
|
194DA |
Payment of in respect of Life
insurance policy (Monetary Limit Rs.100000/-) |
5% |
5% |
|
|
Section |
Particular |
Individual /HUF |
Domestic Company |
|
194H |
Commission or Brokerage (Monetary Limit Rs.15000/- p.a.) |
5% |
5% |
|
194I |
Rent - (Monetary Limit Rs.2,40,000/-p.a.) |
||
|
a)
Plant
& Machinery |
2% |
2% |
|
|
b)
Land
or Building or Furniture or Fitting |
10% |
10% |
|
|
194-IA |
Payment on
transfer of Certain Immovable Property other than agricultural land (Monetary Limit - Exceeding Rs.50,00,000/-) |
1% |
1% |
|
194-IB |
Payment of Rent by Individual or HUF
not liable to tax audit (Monetary Limit -Rent exceeding Rs.50000 p.m.) |
5% |
-- |
|
194J |
Payment for Fees for Technical
Services, Professional Services or Royalty etc. (Monetary Limit -Rs.30000/- p.a.) |
||
|
a)
Fees
for Technical Services& business operation of call center |
2% |
2% |
|
|
b)
Other
Professional Fees |
10% |
10% |
|
|
194M |
Payment of Commission(Not being insurance Commission)Brokerage,
Contractual fees, professional fee to a resident person by an individual or a
HUF who are not liable to deduct TDS |
5% |
5% |
|
194N |
Cash Withdrawal in excess of Rs.1Crore during the Previous year from one
or more account maintained by a person with a banking company, Co-operative
society engaged in Business of Banking or a Post office |
2% |
2% |
|
194O |
Sale of Goods or Provision of Service by E-Commerce operator for
facilitated by it through its digital or electronic Facility or Platform to
e-commerce participants |
1% |
1% |
|
Section |
Particular |
NRI Individual |
Other than Domestic Company |
|
195 |
Payment of any other sum to a
Non-Resident |
|
|
|
a)Any other income |
31.20% |
41.60% |
|
|
b)Income by way of fees for technical Services |
10.40% |
- |
|
|
c) Income in respect of Investment made by Non -Resident Indian
Citizen |
20.80% |
- |
|
|
d) by Government or an Indian concern on moneys borrowed or debts
incurred by Government or the Indian |
20.80% |
- |
|
|
e)Income by way of long-term capital gains as referred to in Section
112A |
20.80% |
- |
|
|
f) Income by way of Short-term capital gains referred to in Section
111A |
15.60% |
- |
Note:
1.TDS on
Salary to Individuals will be deducted based on declaration received from
employee. As two Schemes are available,
so employee need to choose a particular scheme by working out best tax payable
and declaration needs to be obtained to this effect from employee.
Payment Due Date
|
Month of Deduction |
Quarter ending |
Due Dates for TDS Payment through Challan |
Due Date for Filing of Return for All Deductor |
|
April |
30th June |
7th May |
31st July |
|
May |
7th June |
||
|
June |
7th July | ||
|
July |
30th September |
7th August |
31st October |
|
August |
|
7th September |
|
|
September |
7th October |
||
|
October |
31st December |
7th November |
31st January |
|
November |
7th December |
||
|
December |
7th January |
||
|
January |
31st March |
7th February |
31st May |