Direct & Indirect Taxes, Tax Ready Reckoner, Tax Management, Tax Act. & Rules, Tax Planning & Tax Savings.

Direct & Indirect Taxes, Tax Ready Reckoner, Tax Management, Tax Act. & Rules, Tax Planning & Tax Savings.

Rates for TDS ( Deduction of Tax at Source) given under Income Tax Act. for Financial Year 2020-21 (AY:2021-22)

Rates for TDS ( Deduction of Tax at Source) given under Income Tax Act. for Financial Year 2020-21 (AY:2021-22)
Rates for TDS ( Deduction of Tax at Source) given under Income Tax Act. for Financial Year 2020-21 (AY:2021-22)
Rates of TDS
1 192A — Payment of accumulated balance due to an employee  participating in a recognised provident fund 10%
2 194 — Payment of dividend by a Domestic Company 10%
3 194C — Payment to Contractor/Sub-contractor 1%

where payment  made to individual/HUF.  2%

in other cases

4 194DA Payment made to a resident of any sum under a life  insurance policy which is not exempt u/s 10(10D) 1%

of sum paid  upto 31.8.2019

5%

of the income  comprised in  the sum paid

[W.e.f. 1.9.2019]

5 194E — Payment to non-resident sportsmen or sports associations or  an entertainer 20%
6 194EE — Payment in respect of deposits under National Savings  Scheme covered u/s 80CCA 10%
7 194G — Commission, etc. on sale of Lottery Tickets 5%
8 194H — Commission and Brokerage 5%
9 194-I — Rent  —
>> For the use of any machinery or plant or equipment 2%
>> For the use of any land or building (including factory  building) or land appurtenant to a building (including  factory building) or furniture or fittings—  In case the payee is individual or HUF 10%
>> In any other case 10%
10 194-IA — Transfer of immovable properties (other than agricultural  land)

Consideration for immovable property” shall include all  charges of the nature of club membership fee, car parking  fee, electricity or water facility fee, maintenance fee,  advance fee or any other charges of similar nature, which  are incidental to transfer of the immovable property.

1%
11 194-IB ) Payment of rent by certain individuals or Hindu undivided  family (other than those referred to in the second proviso to  section 194-I) 5%
12 194-IC Payment of consideration, not being a consideration in kind  under specified agreement (i.e. development agreement  referred to in section 45(5A)) 10%
13 194J — Fee for professional or technical services or royalty or noncompete fee or w.e.f. 1.7.2012 any remuneration or fees or  commission by whatever name called, other than those on  which tax is deductible under section 192, to a director of a  company. 10%
–          In case of fees for technical services (not being a  professional services) or royalty, where such royalty is  in the nature of consideration for sale, distribution or  exhibition of cinematographic films. 2%
–          Further, in case of a payee engaged only in the business of  operation of call centre 2%
14 194K — Payment of income in respect of units other than the  income which is in the nature of capital gain. 10%
15 194LA — Payment of compensation on acquisition of certain  immovable property other than payment of any award or  agreement which has been exempted from levy of incometax under section 96 of the Right to Fair Compensation and  Transparency in Land Acquisition, Rehabiliation and  Resettlement Act, 2013 (RFCTLAAR Act) 10%
16 194LB — Income by way of interest payable to non-resident (other than a company) or a foreign company by Infrastructure Debt Fund 5%
17 194LBA— Any distributed income referred to in section 115UA  payable by a business trust to its unit holder:
— where the payment is made to a resident 10%
— where the payment is made to a non-resident or a  foreign company
(i) in case of income of the nature referred to in  section 10(23FC)(a) 5%
(ii) in case of income of the nature referred to in  section 10(23FC)(b)

–          Provided that the special purpose vehicle referred  to section 10(23FC) has exercised option under  section 115BAA

10%
18 194LBC — Income in respect of investment in securitisation trust—
  (i) where the payee is an individual or HUF 25%
(ii) where the payee is any other person 30%
19 194LBB — Income in respect of units of investment fund
(i) where the payee is a resident 10%
(ii) where the payee is a non-resident at the rate in force
20 194LC — (1) Income by way of interest payable to non-resident (other  than a company) or to a foreign company by an Indian  company or a business trust on account of money borrowed  in foreign currency by an Indian company;

(i) in respect of money borrowed in foreign currency from a  source outside India—

(a) under a loan agreement at any time on or after 1-7-  2012 but before 1-7-2023; or 5%
(b) by way of issue of long-term infrastructure bonds  at any time on or after 1-7-2012 but before 1-10- 2014; or 5%
(c) by way of issue of any long-term bond including  long-term infrastructure bond at any time on or  after 1-10-2014 but before 1-7-2023, 5%
(ia) in respect of monies borrowed by it from a source  outside India by way of issue of rupee denominated bond  before 1.7.2023 5%
(ib) in respect of monies borrowed by it from a source  outside India by way of issue of any long-term bond or  rupee denominated bond on or after 1.4.2020 but  before 1.7.2023, which is listed only on a recognised  stock exchange located in any International Financial  Services Centre 4%
(ii) to the extent to which such interest does not exceed the  amount of interest calculated at the rate approved by the  Central Government in this behalf, having regard to the  terms of the loan or the bond and its repayment.
21 194LD — Income by way of interest on—
(i) rupee dominated bonds and Government securities  payable on or after 1-6-2013 but before 1-7-2023 to a  foreign institutional investor or a qualified foreign investor 5%
(ii) on or after 1.4.2020 but before 1.7.2023 in respect  of investment made by the payee in municipal debt  securities

In case of rupee dominated bond, the interest shall not  exceed the rate as the Government may notify

5%
22 194M – Payment of any sum to any resident for carrying out any work  (including supply of labour for carrying out any work) in  pursuance of a contract or by way of fees for professional  services during the financial year, by an individual or HUF  (other than those who are required to deduct income-tax as per  the provisions of section 194C or section 194J) 5%
23 194N – Any sum, or, as the case may be, aggregate of sums, in cash,  in excess of ₹1 crore during the previous year

From 1.7.2020, in case of a recepient who has not filed the  returns of income for all of the three assessment years relevant  to the three previous years, for which the time limit of file  return of income under section 139 has expired, immediately  preceding the previous year in which the payment of the sum  is made to him, the rate of TDS shall be 2% in case of cash  withdrawal exceeding Rs.20 lakhs rupees and 5% in case of  cash withdrawal exceeding Rs.1 Cr. rupees.

2%
24 194-O— W.e.f. 1.10.2020, Payment of certain sums by ecommerce operator to e-Commerce participant 1%

of the  gross  amount of  sales or  services or both

25 196B — Income and long-term capital gains from units to an offshore  fund 10%
26 196C — Income and long-term capital gains from Foreign Currency  Bonds or Shares of Indian Companies 10%
27 196D — Income of Foreign Institutional Investors for Securities 20%
28 206C — Tax collected at source in certain cases 1% to 5%
29 206C(1G) — W.e.f. 1.10.2020, Tax collected at source in case  of—
(i) Remittance under Liberalized Remittance Scheme  on amount exceeding Rs.7 lakhs. 5%
(ii) Overseas tour program package 5%
(iii)Where the amount being remitted out is a loan  obtained from any financial institutions as defined in  section 80E, for the purpose of pursuing any  education on amount exceeding Rs.7 lakhs. 0.5%
30 206C(1H) — W.e.f. 1.10.2020, Tax collected at source in case of  receipt of consideration for sale of goods other than  goods being exported out of India or goods covered in  section 206C(1F) and (1G) 0.1%

of the value or aggregate  value exceeding ₹50,00,000

See also  Tax Treatment of ‘Retirement Benefits’ Income to be included in Gross Salary - for computing ‘Salaries’ Income
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