Rate of Tax Deduction at Source (TDS Chart) with Threshold Limit for the Financial Year 2020-21 - Income Tax - Ready Reckoner - Income Tax

Rates of TDS for the Financial Year 2020-21 Section Particulars TDS (From 01/04/2020 to 13/05/2020) TDS (From 14/05/2020 to 31/03/2021 ) Threshold Limit [For SC Cess see note below] 192 Salary Normal Slab Rate As per normal computation of income (+ Surcharge + Health and Education Cess) see: Rate of tax 192A Payment of accumulated balance due of Employee s Provident fund scheme to employees 10% 10% Rs. 50,000 193 Interest on Specified Securities 10% 7.5% Rs. 5,000 in case of Interest on securities for money issued by or on behalf of any local authority/statutory corporation, listed debentures of a company(other than demat form), any other interest on securities 193 Interest on other Securities 10% 7.5% Rs. 10,000 in case of 8% Savings (Taxable) Bonds, 2003 Rs. 10,000 in case of 7.75% Savings (Taxable) Bonds, 2018 during the financial year 194 Dividend 10% 7.5% Rs. 5,000 194A Interest (Other Interest on Securities) 10% 7.5% (a) Rs. 40,000/- where the payer is a banking company (FA, 2019) (b) Rs. 40,000/- where the payer is a co-operative society engaged in carrying on the business of banking; (FA, 2019) (c) Rs. 40,000/- on any deposit with post office under any scheme framed by the Central Government and notified by it in this behalf; and (FA, 2019) (d) Rs. 5,000/- in any other case (e) For a senior citizen, the threshold limit will be Rs. 50,000/- (FA, 2019) 194B Winning from Lotteries 30% 30% Rs. 10,000 194BB Winning for horse race 30% 30% Rs. 10,000 194C Payment to Individuals and HUF 1% 0.75% Rs. 30,000 per single contract or Rs. 1,00,000 in aggregate during the Financial Year No TDS on GTA if contractor owns ten or less goods carriage at any time during the previous year upon furnish a Declaration alongwith PAN number of the GTA 194C Payment to other contractors 2% 1.75% Rs. 30,000 per single contract or Rs. 1,00,000 in aggregate during the Financial Year No TDS on GTA if contractor owns ten or less goods carriage at any time during the previous year upon furnish a Declaration alongwith PAN number of the GTA 194D Insurance Commission 5% 3.75% Rs. 15,000, if recipient is a resident (other than a company) 10% 10% Rs. 15,000, if recipient is a domestic company 194DA Payment of Life Insurance Policy including bonus 5% 3.75% Rs. 1,00,000 194E Payment to a non-resident foreign citizen sportsman / entertainer or non -resident sports association 20% - 194EE Payment for National Saving Scheme, 1987 10% 7.5% Rs. 2500 194F Payment for repurchase of units 20% 15% - 194G Commission, remuneration or prize on sale of lottery ticket 5% 3.75% Rs. 15,000 194H Commission or Brokerage 5% 3.75% Rs. 15,000 194I Rent on land, building or furniture 10% 7.5% Rs. 1,80,000 194I Rent on plant, machinery or equipment 2% 1.5% Rs. 2,40,000 (FA, 2019) 194IA Payment / credit of consideration to a resident transferor for transfer of immovable property (other than rural agricultural land) [w.e.f. 1.6.2013] 1% 0.75% Rs. 50,00,000 194IB Payment of rent by certain individuals or Hindu undivided family. [w.e.f. 1.6.2017] 5% 3.75% Rs. 50,000 194IC Payment under specified agreement [Joint Development agreement u/s 45(5A) ] [w.e.f. 1.6.2017] 10% 7.5% 194J (i)Payment for Professional Fees/Royalty (ii)Technical services royalty (w.e.f. 01.04.20) (iii) Payment to Call Centre Operator (w.e.f.01.06.17) 10% 2% 2% 7.5% 1.5% 1.5% Rs. 30,000 for each services 194J Any remuneration, Fees or Commission to a director [w.e.f. 1.7.2012] 10% 7.5% - 194 K Payment of any income in respect of (a) units of a mutual fund as per section 10(23D); or (b) the units from the administrator; or (c) units from specified company (w.e.f. 01.04.2020) 10% 7.5% Rs. 5,000 194LA Compensation to a resident on acquisition of certain immovable property other than agricultural land. (TDS exempted if covered under RFCTLARR Act w.e.f. 01.04.2017) 10% 7.5% Rs. 2,50,000 194LB Interest payable to non-resident by an infrastructure debt fund [Rate+ SC+HEC] 5% 5% - 194LBA Income from units of business trust - interest received or receivable from a special purpose vehicle; Resident Non-Resident -Or, dividend referred to in sub-section (7) of section 115-O _ Resident Non-Resident 10% 5% 10% 10% 7.5% 5% 7.5% 10% - 194LBA Distribution of rental income to unit holders- Other than Comapany Resident Non-Resident - Company Resident Non-Resident 10% 30% 10% 40% 7.5% 30% 7.5% 40% - 194LBB Income in respect of units of investment fund -Other than Company Resident Non-Resident -Company Resident Non-Resident 10% 30% 10% 40% 7.5% 30% 7.5% 40% - 194LBC Income in respect of investment in securitization fund -Individual/HUF Resident Non-Resident -Company Resident Non-Resident -Other Person Resident Non-Resident 25% 30% 30% 40% 30% 30% 18.75% 30% 22.5% 40% 22.5% 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 [Rate+ SC+HEC] 5% 5% 194LC Income by way of interest by an Indian specified company on rupee denominated bond / any long-term bonds from outside India, which is listed only on a recognized stock exchange located in any International Financial Services Centre. [Rate+ SC+HEC] 5% 5% 194LD Interest on Bonds / Government Securities payable to a foreign institution investor or a qualified foreign investor [Rate+ SC+HEC] 5% 5% Income by way of interest shall be interest payable on or after 1/6/2013 but before 1/7/2020 in respect of investment made by the payee in a rupee denominated bond of Indian Company/Government security. 194M Certain payments by Individual/HUF 5% 3.75% Rs. 50,00,000 194N Payment of certain amount in cash - Amount is more than Rs.20 lakh but up to Rs. 1 crore - Amount exceeds Rs. 1 crore (Applicable from 01.07.2020) 2% 5% 2% 5% According to section 194N of the Act, TDS has to be deducted if a sum or aggregate of sum withdrawn in cash by a person in a particular FY exceeds : -Rs. 20 lakh (if no ITR has been filed for all the three previous AYs), or -Rs. 1 crore (if ITRs have been filed for all or any one of three previous AYs). 194O Applicable for e-commerce operator for the sale of goods or provision of services facilitated by it through its digital or electronic facility or platform (Applicable from 01.10.2020) - 0.75% 1% of gross amount of such sales or services or both. If No PAN quoted by deductee than rate of TDS will be 5% 195 Income of Investment made by an NRI Long-term capital gain -Under Section - 115E/112(1)(c)(iii)/112A - Any Other Gains Short-term capital gain - 111A Royalty Fees for Technical Services Interest income payable by Govt./Indian concern (other than section 194LB or 194LC Any Other Income - Other than Company - Company 20% 10% 20% 15% 10% 10% 20% 30% 40% 20% 10% 20% 15% 10% 10% 20% 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% 196B Income from units to an offshore fund 10% 10% 196C Income from foreign currency bonds or GDR of an Indian company 10% 10% 196D Income of foreign Institutional Investors from securities (not being dividend or capital gain) 20% 20% 1. Surcharge: 1.1 No Surcharge on TDS in case of payment is made to Resident or Domestic Company [Other than salary] 1.2 Non Resident Individual / HUF/AOP/BOI / Artificial Jurisdical Personal Add Surcharge - 10% if income paid or likely to be paid exceeds Rs. 50 Lakhs but does not exceed 1 Crores Add Surcharge - 15% if income paid or likely to be paid exceeds Rs. 1 Crores Add Surcharge - 25% if income paid or likely to be paid exceeds Rs. 2 Crores Add Surcharge - 37% if income paid or likely to be paid exceeds Rs. 5 Crores Non resident co-operative society / firm Add Surcharge - 12% in case of payment is made or likely to be made to Non Resident other than Foreign Company exceeds Rs. 1 Crore. Non Resident company Add Surcharge - 2% if the recipient is a foreign company and amount exceeds or likely to exceed Rs. 1 Crore to Rs. 10 Crore. In case of an amount more than Rs. 10 Crore, 5% 2. Cess No Cess on TDS in case of payment is made to Resident or Domestic Company [Other than Salary] Health and Education Cess - @4% of Income Tax Further Notes: 1. Self Declaration - Tax (TDS) is not deductible under section 192A , 193 , 194 , 194A , 194D , 194DA , 194-I, or 194EE or 194K if the recipient makes a declaration in Form 15G / 15H under the provisions of section 197A . But, the person seeking to furnish Form 15G / 15H must have PAN number on or after 1.4.2010. 2. Certificate from AO - Under Section 197 - A person can apply to AO and seek a certificate in Form 13 for no deduction of TDS or deduction of TDS at lower rates under sections192 , 193 , 194 , 194A , 194C , 194D , 194G , 194H [, 194-I , 194J , 194K , 194LA , 194LBB , 194LBC and 195 . 3. In case PAN of the deductee is not available than TDS rate will be charged at normal rate or 20% whichever is higher. 4. No TDS on Service Tax / GST - As per Circular 01/2014 dated 13-1-2014 , TDS is not applicable on service tax part if service tax part shown separately.