TDS TCS Rate Chart for FY 2021-22, AY 2022-23 In Budget 2021 there have been no changes made in the TDS rates for FY 2020-21 hence the old rates witho
TDS TCS Rate Chart for FY 2021-22, AY 2022-23
In Budget 2021 there have been no changes made in the TDS rates for FY 2020-21 hence the old rates without giving the effect of Covid reduction of 25% shall be applicable for FY 2021-22
Note: TDS Rates without PAN 20% flat (if TDS rate is lower than 20%) or the higher rate applicable on the particular section.
Notes
| Section | Nature of Payment | Threshold Limit Rs. | Individual /Huf % | Others % |
|---|---|---|---|---|
| 192 | Salaries | As per Slab [Please note that no Change in Slab Rates have been introduced for FY 2021-22] | Slab Rates | - |
| 192A | Premature withdrawal from Employee Provident Fund | 50,000 | 10 | - |
| 193 | Interest on securities
a) any debentures or securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act b) any debentures issued by a company where such debentures are listed on a recognised stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder c) any security of the Central or State Government; [i.e. 8% Savings (Taxable) Bonds, 2003 and 7.75% Saving (Taxable) Bonds, 2018] d) interest on any other security |
2,500 | 10 | 10 |
| 194 | Dividend received other than the dividend as referred to in Section 115-O | 5,000 | 10 | 10 |
| 194A | Interest other than interest on securities – Banks Time deposits, Recurring deposit and Deposit in Co-op Banks (Note 3) | Senior Citizens : 50000 Others : 40,000 |
10 | 10 |
| 194B | Winning from Lotteries | 10,000 | 30 | 30 |
| 194BB | Winnings from Horse Race | 10,000 | 30 | 30 |
| 194C | Payment to Contractor | Single Payment : 30000 During the FY : 100000 |
1 | 2 |
| 194C | Contract - Transporter not covered under 44AE | Single Payment : 30000 During the FY : 75000 |
1 | 2 |
| 194D | Insurance Commission | 15,000 | 5 | 5 |
| 194DA | Payment in respect of life insurance policy (Note 5) | 1,00,000 | 5 | 5 |
| 194E | Payment to Non-Resident Sportsmen or Sports Association | – | 20 | 20 |
| 194EE | Payments out of deposits under the National Savings Scheme | 2,500 | 10 | 10 |
| 194F | Repurchase Units by MFs | – | 20 | 20 |
| 194G | Commission – Lottery | 15,000 | 5 | 5 |
| 194H | Commission / Brokerage (Note 3) | 15,000 | 5 | 5 |
| 194I(a) | Rent – Land and Building – furniture – fittings (Note 3) | 2,40,000 | 10 | 10 |
| 194I(b) | Rent – Plant / Machinery / equipment (Note 3) | 2,40,000 | 2 | 2 |
| 194IA | Transfer of certain immovable property other than agricultural land | 50,00,000 | 1 | 1 |
| 194IB | Rent – Land or building or both | 50,000 per month | 5 | - |
| 194IC | Payment of Monetary consideration under Joint development agreement | – | 10 | 10 |
| 194J(a) | Fees for professional or technical services. If the recipient is engaged in the business of operation of the call Centre. If the sum is payable towards fees for technical services (other than professional services) |
30,000 | 2 | 2 |
| 194J(b) | Professional Fees in all other cases | 30,000 | 10 | 10 |
| 194K | Payment of any income in respect of Units of Mutual fund as per section 10(23D) or Units of an administrator or from a specified company (Note 7) | – | 10 | 10 |
| 194LA | TDS on compensation for compulsory acquisition of immovable property. | 2,50,000 | 10 | 10 |
| 194 LBA(1) | The business trust shall deduct tax while distributing, any interest received or receivable by it from an SPV or any income received from renting or leasing or letting out any real estate asset owned directly by it, to its unitholders | - | 10 | 10 |
| 194LB | Income by way of interest from infrastructure debt fund (non-resident) | – | 5 | 5 |
| 194LBB | Income in respect of investment in Securitisation trust. | – | 10 | 30 |
| 194LBC | Income in respect of investment made in a securitisation trust | – | 25 | 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 (Note 10) | – | 5 | 5 |
| 194LD | Interest received on certain bonds and govt. Securities (Note 11) | – | 5 | 5 |
| 194M | Payment of Commission, brokerage, contractual fee, the 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. | 50,00,000 | 5 | 5 |
| 194N | Cash withdrawal over Rs. 20 Lakh during the previous year from one or more accounts maintained by a person with a banking company, co-operative society engaged in the business of banking or a post office. | 20,00,000 | 2 | 2 |
| 194N | Cash withdrawal over Rs. 1 crore during the previous year from one or more accounts maintained by a person with a banking company, co-operative society engaged in the business of banking or a post office. (Note 12) | 1,00,00,000 | 2 | 2 |
| 194O | Applicable for E-Commerce operator for the sale of goods or provision of service facilitated by it through its digital or electronic facility or platform. | – | 1 | 1 |
| 194P | TDS by the specified bank to specified senior citizen | – | Rates applicable to a particular slab of income including applicable Surcharge and Health & Education Cess | - |
| 194Q | Purchase of goods (applicable w.e.f 01.07.2021) | 50,00,000 | .10 | .10 |
| 195 | Payment of any sum to Non-resident | – | Higher of Rate in force or Double Taxation Avoidance Act rate | - |
| 196B | Income from units | – | 10 | 10 |
| 196C | Income from foreign currency bonds or GDR (including long-term capital gains on transfer of such bonds) (not being dividend) | – | 10 | 10 |
| 196D | Income of FIIs from securities | – | 20 | 20 |
Note: TDS Rates without PAN 20% flat (if TDS rate is lower than 20%) or the higher rate applicable on the particular section.
Notes
- TDS provisions u/s 192A will be applicable when the withdrawal of accumulated balance in Recognized Provident Fund is to be included in the total income
- The threshold limit for interest paid on debentures is Rs. 5,000. Threshold limit for interest on 7.75% GOI Savings (Taxable) Bonds 2018 is Rs. 10,000.
- The provisions of the following TDS / TCS Sections, which were linked to the applicability of Tax Audit provisions, shall now apply if the Gross Receipts / Turnover is INR 1 Crore or more for Business and INR 50 Lakhs or more for Profession:
- Section 194A, 194C, 194H, 194I, 194J and
- Section 206C
Thus, irrespective of the applicability of Tax Audit provisions, TDS / TCS provisions, as mentioned above, shall apply. - TDS is to be deducted at the rate of 2.0% if the payee is an AOP or BOI. TDS is not applicable on payment to Contractor engaged in plying, hiring or leasing of goods carriages, where such contractor owns 10 or fewer goods carriages during the Financial Year and furnishes amend definition of “work” to include the purchase of raw material from an associate of the customer. The word Associate shall have the same relations as stated u/s 40A(2)(b).
- Section 194DA is not applicable in case of the amount is exempt u/s 10(10D) i.e. the Sum is received at the time of maturity of policy or Death benefit received. Form 15G/15H can be given wherever applicable.
- The rate of TDS is 2% instead of 10% if the payee is engaged in the business of operation of the call centre. TDS on Remuneration paid to Director other than Salary shall be deducted @ 10%.
- Units of Mutual Fund have been specified under section 10(23D) of Income Tax Act, 1961. “Administrator”, “specified company” and “specified undertaking” are specified u/s 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002.
- No tax will be deducted if payment is made in respect of any award or agreement which has been exempted from levy of income-tax u/s 96 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.
- Interest payment from an SPV and Distribution of dividend by a Business Trust, to Resident unit holders shall be liable for TDS @ 10%. Whereas in the case of a Non-Resident payee, TDS on dividend shall be @ 10% & that on interest payment shall be @ 5%.
- The period of concessional rate of TDS of 5% has been extended till 1st July 2023 from the existing 1st July 2020. The rate of TDS has been reduced to 4 % in case of interest payable to a Non-Resident on borrowings in foreign currency from a source outside India, by way of issue of any long term bond or Rupee Denominated Bonds on or after 1stApril, 2020 but before 1st July 2023 and which is listed only on a recognised stock exchange located in any IFSC.
- In the case of FPI and QFI, the lower TDS rate of 5% has been extended to 1st July 2023. The said concessional TDS rate shall also be applied to FII and QFI in respect of investment made in Municipal Bonds.
- The threshold limit of INR 1 Crore is for aggregate cash withdrawn from an account during the Financial Year.
- In case payee does not furnish PAN then TDS shall be deducted at higher of the following rates:
- Rates specified in relevant provisions of the Act; or
- Rates in force; or
- 20%
In case of payment by E-Commerce Operator to E-Commerce Participant, 5% TDS shall apply instead of 20%. - In case of non-filers having aggregate TDS / TCS of INR 50,000 or more and who have not filed their ITR in both of the 2 years immediately preceding the financial year (and time limit for filing the original return has expired), then the rate of TDS shall be higher of the following
- Twice the rates specified; or
- Rates in force; or
- 5%
- These provisions will not be applicable for the following payments:
- Salary
- Accumulated Balance due to employee
- Winnings from the lottery, crossword puzzle or horserace
- Income paid in respect of investment in securitization trust
- TDS by banks on cash withdrawals
| Section | Nature of Payment | Rates |
|---|---|---|
| 206C (1) | Sale of Scrap | 1.00% |
| 206C (1) | Sale of Tendu Leaves | 5.00% |
| 206C (1) | Sale of Timber obtained under a forest lease or other mode | 2.50% |
| 206C (1) | Sale of Any other forest produce not being Timber or tendu leaves | 2.50% |
| 206C (1) | Sale of Alcoholic Liquor for Human Consumption | 1.00% |
| 206C | Sale of Indian made for foreign liquor | 1.00% |
| 206C (1C) | Lease or license of the Parking lot, toll plaza, mining & quarrying | 2.00% |
| 206C (1) | Sale of Minerals, coal lignite, Iron ore by a trader | 1.00% |
| 206C (1F) | Sale Value of Motor vehicle whether in cheque or in any other mode of receipt Exceeding Rs. 10 Lakhs per transaction | 1.00% |
| 206C | Foreign remittance through Liberalised Remittance Scheme (LRS) of exceeding Rs. 7 Lakh in a financial year if the remitted amount is out of loan obtained from any financial institution u/s 80E to pursue any education | 0.5% (applicable from 01.10.2020) |
| 206C | Foreign remittance through Liberalised Remittance Scheme (LRS) of exceeding Rs. 7 Lakh in any other case | 5% (applicable from 01.10.2020) |
| 206C | Selling of overseas tour package | 5% (applicable from 01.10.2020) |
| 206C | Sale of goods (Other than those being exported) of value exceeding Rs. 50 Lakh in a previous year whose total Sale/ gross receipts/turnover from business exceeds Rs 10 Crore during immediately financial year | 0.1% (applicable from 01.10.2020) |
| TAX DEDCUTED AT SOURCE (TDS) | TAX COLLECTED AT SOURCE (TCS) |
|---|---|
| 7th day of next month (30th April for TDS deducted in March) | 7th day of next month (for TCS collected in March - 7th April) |
| Quarter ending on | Due Date for Quarterly TDS Statement in Form no. 24Q/26Q/27Q | Due Date for Quarterly TCS Statement in Form no. 27EQ |
|---|---|---|
| 30th Jun,2020 | 31st March,2021 | 31st March,2021 |
| 30th Sept.,2020 | 31st March,2021 | 31st March,2021 |
COMMENTS