Income Tax

Revised TDS/TCS Rate as Applicable wef 14.05.2020

In order to increase the liquidity in the hands of common people Govt on 13th May 2020, Wednesday announced various relief measures, and among them are the reduction in the rates of TDS/TCS by 25% on Non- Salaried payments. No Salaried Payments include interest in Fixed Deposits, dividend incomes, etc. The new rates will come into effect from May 14, 2020, and will remain effective till March 31, 2021, i.e., till the end of the financial year 2020-21.

TDS Rate Chart for F.Y. 2020-21 (A.Y: 2021-22) after considering changes w.e.f. 14.05.2020

Section Nature of payment Threshold Limit Till 13/05/2020 From 14/05/2020
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
193 Interest on securities – 8% Savings (Taxable) Bonds, 2003 or 7.75% Savings (Taxable) Bonds, 2018 during the financial year 10000 10 0 7.5 0
193 Interest on securities – 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 Rs. 5000 in case of Individual 10 7.5
194 Dividends 5000 10 7.5
194A Interest (Banking co., co-operative society engaged in banking, post office) 50000 10 7.5
194A Interest (Any other person) 5000 10 7.5
194B Winning from lotteries 10000 30 30 30 30
194BB Winning from Horse race 10000 30 30 30 30
194C Contractor-Single transaction-Individual/HUF 30000 1 0.75
-Others 2 0- 1.5
194C Contractor – Consolidated Payment During the F.Y. 100000
– Individual/HUF 1 0.75 0-
– Others 2 1.5
194C Transporter (44AE) declaration with PAN 0 0 0 0
194D Insurance commission – Other than Company 15000 5 0 3.75 0
                     – Company 10 0 7.5 0
194DA Maturity of Life insurance policy 100000 5 0 3.75 0
194E Non-resident sportsmen or sports association NA 20 NA 20
194EE NSS 2500 10 10 7.5 10
194F Repurchase units by MFs 20 20 15 20
194G Commission-Lottery 15000 5 5 3.75 5
194H Commission /Brokerage 15000 5 0 3.75 0
194I Rent of – Plant/Machinery/Equipment 240000 2 0 1.5
        – Land and Building/Furniture & Fixture 10 0 7.5
194IA Transfer of certain immovable property other than agriculture land 50 lakh 1 0 0.75
194IB Rent by Individual/HUF 50000 per month 5 0 3.75
194IC Payment under Joint Development Agreements to Individual/HUF 10 0 7.50 0
194J Professional Fees 30000 10 0 7.5 0
194J Technical Fees (w.e.f. 01.04.2020) 30000 2 0 1.5 0
194J Payment to call centre operator (w.e.f. 01.06.2017) 30000 2 0 1.5 0
194J Director’s fees NIL 10 0 7.5 0
194K Payment of any income in respect of 5000 10 0 7.5 0
(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)
194LA Compensation on transfer of certain immovable property other than agriculture land 250000 10 0 7.5 0
(TDS exempted if covered under RFCTLARR Act w.e.f. 01.04.2017)
194LB Income by way of interest from infrastructure debt fund 0 5 0 5
194LBA Income from units of business trust
– interest received or receivable from a special purpose vehicle; or 10 5 7.5 5
– dividend referred to in sub-section (7) of section 115-O 10 10 7.5 10
194LBA Distribution of rental income to unit holders
– Other than Company 10 30 7.5 30
– Company 10 40 7.5 40
194LBB Income in respect of units of investment fund
– Other than Company 10 30 7.5 30
– Company 10 40 7.5 40
194LBC Income in respect of investment in securitization fund
                     – Individual/HUF 25 30 18.75 30
                     – Company 30 40 22.5 40
                     – Other Person 30 30 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 0 5 0 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 0 4 0 4
194LD Interest on certain bonds from Govt. securities 0 5 0 5
194M Certain payments by Individual/HUF 50 lakh 5 0 3.75 0
194N Payment of certain amount in cash 1 Crore 2 2 2 2
194N Payment of certain amount in cash (first proviso of section 194N- assessee has not
furnished return for
last 3 assessment years
) if-
20 Lakh
–  Amount is more than Rs.20 lakh but up to Rs. 1 crore 2 2 2 2
–  Amount exceeds Rs. 1 crore 5 5 5 5
194-O 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 (w.e.f. 01.04.2020) 1 0 0.75 0
195 Income of Investment made by an NRI 0 20 0 20
195 Long-term capital gain
– Under Section – 115E/112(1)(c)(iii)/112A 0 10 0 10
– Any Other Gains 0 20 0 20
195 Short-term capital gain – 111A 0 15 0 15
195 Royalty 0 10 0 10
195 Fees for technical services 0 10 0 10
195 Interest income payable by Govt./Indian concern (other than section 194LB or 194LC) 0 20 0 20
195 Any Other Income – Other than Company 0 30 0 30
– Company 0 40 0 40
196A Income in respect – 0 20 0 20
– 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
196B Income from units to an offshore fund 0 10 0 10
196C Income from foreign currency bonds or GDR of an Indian company 0 10 0 10
196D Income of foreign Institutional Investors from securities (not being interest referred to in section 194LD, not being dividend referred in section 115-O, not being capital gain from transfer of securities referred in section 115AD) 0 20 0 20
* TDS rate shall be increased by applicable surcharge and Health & Education Cess.

No Reduction in rate of TDS where the tax is required to be deducted at higher rate due to non furnishing of PAN/ Aadhaar.

TDS rates for Salaried persons and Non Resident Persons shall remain unchanged and old rates shall apply as usual.

The TDS on the amount paid or credited during the period from 14th May 2020 to 31st March 2021 shall be deducted at the reduced new rates as specified in the above table. Similarly the tax on the amount received and debited during the period from 14th May 2020 to 31st March 2021 shall be collected at new rates as specified in the table.

This relaxation only applies to payment made between 14th May 2020 and 31st March 2021. So this will not cover payments made before 14th May 2020.

TCS Rate Chart for F.Y. 2020-21 (A.Y: 2021-22) after considering changes w.e.f. 14.05.2020

Section Nature of payment Till 13/05/2020 From 14/05/2020
TCS Rate (%) TCS Rate (%)
206C Scrap 1 0.75
206C Tendu leaves 5 3.75
206C Timber obtained under a forest lease or other mode 2.5 1.875
206C Any other forest produce not being a timber or tendu leaves 2.5 1.875
206C Alcoholic liquor for human consumption and Indian made foreign liquor 1 1
206C Parking lot, toll plaza, mining and quarrying (other than mining and quarrying of mineral oil, petroleum and natural gas) 2 1.5
206C Minerals, being coal or lignite or iron ore 1 0.75
206C Sale of motor vehicle of the value exceeding Rs. 10 Lacs 1 0.75
206C Remittance out of India under the Liberalized Remittance Scheme of the RBI of the value exceeding 7 Lacs in a financial year 5% (Wef 01.10.2020) 5% (Wef 01.10.2020)
206C Sale of overseas tour programme package 5% (Wef 01.10.2020) 5% (Wef 01.10.2020)
206C Remittance out of India for education under the Liberalized Remittance Scheme of the RBI of the value exceeding 7 Lacs in a financial year 0.5%: Where
remittance is a repayment of loan obtained for the
purpose of
pursuing any
education.–

5% In any other
case.

(wef 01.10.2020)

0.5%: Where remittance is a repayment of loan obtained for the purpose of pursuing any education.–

5% : In any other case.

(wef 01.10.2020)

206C Sale of any goods (other than goods exported out of India or goods given in the above points) of the value exceeding 50 Lacs 0.1 (Wef 01.10.2020) 0.075 (Wef 01.10.2020)

No Reduction in rate of TCS  where the tax is required to be collected at higher rate due to non-furnishing of PAN/ Aadhaar.

 

TaxClue Team

Taxclue is an online news portal for reporting all news, articles, judgments, Circulars, orders, and notifications relating to various corporate and tax laws in India. We use the tagline ‘Simplifying Laws’. Our mission is to Simplify the Laws and make people aware of their rights and duties in relation to tax matters in order to equip them to participate in nation-building. TaxClue is a team of young professionals. We started in December 2016 with the mission of knowledge sharing. TaxClue would like to hear your valuable suggestion. Please write to our editorial team at [email protected]

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