Due to the Covid-19 situation, the rates of TDS on payments made to resident Indians have been reduced by 25% for the period starting from 14th May 2020 to 31st March 2021. However, there shall be no reduction in rates, where tax is required to be deducted or collected at a higher rate due to non-furnishing of PAN/Aadhaar.
The following tables list the various TDS rates applicable to resident and non-resident payments as well as TDS rates on domestic and foreign companies in India. Any person paying income is responsible to deduct tax at source and depositing TDS within the stipulated due date.
| 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 |
| 194 | Dividends | 5000 | 10 | - | 7.5 | - |
| 194A | Interest (Banking co., co-operative society engaged in banking, post office) | 40000 | 10 | - | 7.5 | - |
| 194D | Insurance commission
- Other than Company - Company |
15000 |
5 10 |
- - |
3.75 10 |
- - |
| 194F | Repurchase units by MFs | - | 20 | 20 | 15 | 20 |
| 194H | Commission/Brokerage | 15000 | 5 | - | 3.75 | - |
| 194I | Rent of - Plant/Machinery /Equipment
- Land and Building/Furniture & Fixture |
240000 | 2
10 |
-
- |
1.5
7.5 |
-
- |
| 194IA | Transfer of certain immovable property other than agricultural land | 50 lakh | 1 | - | 0.75 | - |
| 194IB | Rent by Individual/HUF | 50000 per month | 5 | - | 3.75 | - |
| 194J | Professional Fees | 30000 | 10 | - | 7.5 | - |
| 194J | Technical Fees (w.e.f. 01.04.2020) | 30000 | 2 | - | 1.5 | - |
| 194N | Payment of a certain amount in cash | 1 Crore | 2 | 2 | 2 | 2 |
| 195 | Income of Investment made by an NRI | - | - | 20 | - | 20 |
| 195 | Long-term capital gain
- Under Section - 115E/ 112(1)(c)(iii)/112A - Any Other Gains |
- |
- - |
10 20 |
- - |
10 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
- Company |
- | -
- |
30
40 |
-
- |
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 | - | 20 |
* TDS rate shall be increased by applicable surcharge and Health & Education Cess.
Note: In case of non-furnishing of PAN/Aadhaar by deductee, TDS will be charged at a normal rate or 20% (5% in case of section 194-O), whichever is higher.
TCS Rate Chart for F.Y. 2020-21 (A.Y: 2021-22)
Note: In case of non-furnishing of PAN/Aadhaar by collectee, TCS will be charged at twice of the normal rate applicable or 5% {1% in case of sale of any goods (given in the last point) of the value exceeding 50 Lacs}, whichever is higher.
In case you are confused about TDS Return Filing, feel free to consult the experts at Wealthcafe.