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TDS Rates
TDS Rate 2022
TDS Rates after 13th May 2020 for some of the key payment types are:
Section | Nature of Payment | TDS Rate from 13th May 2020 to 31st March 2021. |
192 | Salary | As per applicable slab rate |
194 | Dividend | 7.50% |
193 | Interest on Securities | 7.50% |
194C | Payment made to contractor/sub-contractor - a) Individual or HUF |
0.75% |
b) Others | 1.50% | |
194DA | Sum paid to insured with regards to Life Insurance Policy | 3.75% |
194I | Rent fora) Plant and Machinery | 1.75% |
b) Land and Building or Furniture and Fitting | 7.50% | |
194IA | Transfer of Immovable property other than agricultural property | 0.75% |
TDS Rate Chart
TDS or Tax Deducted at Source is a mechanism of deducting income tax at the source origin of taxable income. Under this income tax department has specified certain types of payment in case of which the payee needs to deduct a certain amount as specified for that expense at the time of making payment to the beneficiary.
Due to the spread of COVID-19 in the country, the Indian Government announced a relief package namely ‘Atma Nirbhar Relief Package’ on 13th May 2020. In this package, one of the points covered the reduction of TDS rates for various types of payments. The benefit announced in the Atma Nirbhar Package is applicable only for Resident Indians.
Revised TDS Rates for Residents till 31st March 2021
TDS Section | Nature of Payment | TDS Rate till 13th May, 2020 | TDS Rate from 14th May 2020 to 31st March 2021 |
194 | Dividend | 10% | 7.50% |
194A | Income earned as interest other than ‘Interest on securities’ | 10% | 7.50% |
192 | Salary | Applicable slab rate | Applicable slab rate |
192A | Premature withdrawal from EPF | 10% | 10% |
193 | Interest on Securities from - any debenture of security issued by any authority or corporation established by the government, listed debenture of a company, any security of State or Central government, or any other security | 10% | 7.50% |
194B | Income from lotteries, card games, puzzles, etc. | 30% | 30% |
194BB | Income from Horse races | 30% | 30% |
194C | Payment made to contractor/sub-contractor - a) Individual or HUF |
01% | 0.75% |
b) Others | 02% | 1.50% | |
194D | Insurance commission paid -a) Other than a company | 05% | 3.75% |
b) To Company | 10% | 10% | |
194DA | Sum paid to insured with regards to Life Insurance Policy | 05% | 3.75% |
194EE | National Saving Scheme | 10% | 7.50% |
194F | Repurchase of unit by MFs or UTIs | 20% | 15% |
194G | Commission on sale of lottery tickets | 05% | 3.75% |
194H | Commission/Brokerage | 05% | 3.75% |
194I | Rent fora) Plant and Machinery | 02% | 1.75% |
b) Land and Building or Furniture and Fitting | 10% | 7.50% | |
194IA | Transfer of immovable property other than agricultural land | 01% | 0.75% |
194IB | Rent paid by an individual or HUF and not covered under Section 194I (above ₹ 50,000) | 05% | 3.75% |
194IC | Payment under Joint Development Agreement to Individuals/HUF | 10% | 7.50% |
194J | a) Any sum paid with respect to Professional fee or director’s fee | 10% | 7.50% |
b) Payment made with respect to technical fee or as Royalty for the sale or distribution or exhibition of cinematographic films. | 02% | 1.75% | |
194K | Payment made with respect to any of the following:a) MF units as per section 10(23D).b) Units from specified company, orc) Units from administrator. | 10% | 7.50% |
194LA | Compensation for transfer of certain immovable property. | 10% | 7.50% |
194LBA | Specified income distributed by a business trust to its unit holder. | 10% | 7.50% |
194LBB | Income paid by investors fund to its investors | 10% | 7.50% |
194LBC | Income from investment in securitization of funda) For Individual/HUF | 25% | 18.75% |
b) For Company or any other person | 30% | 22.50% | |
194M | Certain payments made by HUF or Individual above ₹ 50 lakhs | 05% | 3.75% |
194N | Certain payments made in cash:a) Amount more than ₹ 20 lakhs but less than ₹ 1 crore | N.A. | 02% |
b) Amount exceeds ₹ 1 crore (Applicable from 1st July, 2020) | N.A. | 05% | |
194O | For E-commerce operators for sale of goods or provision of services facilitated by it through its digital platform (from 1st Oct, 2020) | N.A. | 0.75% |
TDS Chart Applicable for Non Resident of India (NRIs)
For Non-Residents Indians there is no relief under the Atmairbhar package announced on 13th May 2020. Thus, the TDS rates applicable to non-residents remain the same throughout the year.
Section | Nature of Payment | TDS Rate |
192 | Salary | Applicable slab rate |
192A | Premature withdrawal of EPF | 10% |
194B | Income from lotteries, crossword puzzles, card games, etc. | 30% |
194BB | Income from winning horse races | 30% |
194E | Any payment made to non-resident sportsman/association | 20% |
194EE | Payment with respect to deposits in National Savings Scheme | 10% |
194F | Payment on account of repurchase of a unit by MF or UTI | 20% |
194G | Commission on sale of lottery tickets | 05% |
194LB | Interest of Infrastructure debt fund | 05% |
194LBA | Income from business trust units -a) Interest received or receivable from special purpose vehicle | 05% |
b) Dividend referred in section 115-O(7). | 10% | |
194LBC | Income from investment in securitization fund | 30% |
194LC | Interest payment by indian company or business trust for loan availed in foreign currency. | 05% |
194LD | Interest payment on bond of an Indian company or government security to a foreign investor | 05% |
194N | Certain payments made in cash:a) Amount more than ₹ 20 lakhs but less than ₹ 1 crore | 02% |
b) Amount exceeds ₹ 1 crore (Applicable from 1st July, 2020) | 05% | |
195 | Various Payments made to Non-Residenta) Income on investment made by Non Resident Indian Citizen | 20% |
b) A long term capital gain referred to in Section 115E | 10% | |
c) Long term capital gain referred to in Section 193(1)(c)(iii). | 10% | |
d) Short term capital gain referred in section 111A | 15% | |
e) Any other long term capital gain other than the gain referred in clauses (33), (36), and (38) of section 10 | 20% | |
f) Income from interest payable by government or Indian concern on a debt availed in foreign currency other than the income covered in Section 194LB and 194LC | 20% | |
196A | Income from MF units under clause (23D) of section 10, or from the specified company in clause (35) of section 10 | 20% |
196B | Income from units including long term capital gain or from transfer of units to offshore fund | 10% |
196C | Income from foreign currency bond or GDR of Indian company | 10% |
196D | Income of foreign institutional investors from securities | 20% |
TDS Rates Applicable on Domestic Company
Section | Nature of Payment | TDS Rate till 13th May, 2020 | TDS Rate from 14th May, 2020 to 31st March, 2021 |
193 | Interest on Securities | 10% | 7.50% |
194 | Dividend | 10% | 7.50% |
194A | Interest income other than interest on securities | 10% | 7.50% |
194B | Income from lotteries, crossword puzzles, card games, etc. | 30% | 30% |
194BB | Income from winning horse races | 30% | 30% |
194C | Payment to Contractor/sub-contractor - a) HUF/Individuals | 01% | 0.75% |
b) Others | 02% | 1.50% | |
194D | Insurance Commission | 05% | 3.75% |
194DA | Payment of Life Insurance Policy | 05% | 3.75% |
194EE | Payment with regards to deposit under National Saving Scheme | 10% | 7.50% |
194F | Repurchase of units by MF or UTIs | 20% | 15% |
194G | Commission on sale of lottery tickets | 05% | 3.75% |
194H | Commission or brokerage | 05% | 3.75% |
194I | Rent -a) Plant and Machinery | 02% | 1.75% |
b) Land and Building or Furniture and Fitting | 10% | 7.50% | |
194IA | Payment on transfer of certain immovable property other than agricultural land | 01% | 0.75% |
194IB | Rent paid by individual or HUF not covered under Section 194I | 05% | 3.75% |
194IC | Payment under Joint Development Agreements to Individual or HUF | 10% | 7.50% |
194J | Payment made as -a) Professional fee or director’s fee/remuneration | 10% | 7.50% |
b) Technical fee or Royalty for sale/distribution/exhibition of a cinematography films | 02% | 1.75% | |
194LBA | Income distributed by a business trust to its unit holders | 10% | 7.50% |
194LA | Payment for acquisition of certain immovable property | 10% | 7.50% |
TDS Rates Applicable for Non Domestic Company
The reliefs with regards to TDS announced on 13th May 2020 under the Atma Nirbhar Relief Package are only for the Residents; no relief has been announced for the Non-residents on TDS.
Section | Nature of Payment | TDS Rate |
194B | Income from lotteries, crossword puzzles, card games, etc. | 30% |
194BB | Income from winning horse races | 30% |
194E | Payment to non-resident sports association | 20% |
194G | Commission on sale of lottery tickets | 05% |
194LB | Interest on Infrastructure debt fund | 05% |
194LBA | Income distributed by business trust to unit holders | 05% |
194LBC | Income in respect of securitization of funds | 40% |
194LC | Interest payment by indian company or business trust for loan availed in foreign currency. | 05% |
194LD | Interest payment on bond of an Indian company or government security to a foreign investor | 05% |
195 | Various other payments | |
a) Long term capital gain referred to in sub clause (iii) of clause © of sub section (1) of Section 112 | 10% | |
b) Short term capital gain referred in section 111A | 15% | |
c) Any other long term capital gain not referred in clauses (33), (36), and (38) of section 10 | 20% | |
d) Income from interest payable by indian government or indian concern for loan availed in foreign currency, not covered in Section 194LB and 194LC | 20% | |
e) Royalty income payable by Indian government or Indian concern (first and second proviso of subsection (1A) of section 115A | 10% | |
196B | Income from units including long term capital gain and transfer of units to offshore funds. | 10% |
196C | Income from foreign currency bonds or GDR of Indian company | 10% |
196D | Income of foreign institutional investors from securities | 20% |
Interest on Late TDS payment
The payment of TDS through challan is required to be made by the 7th of next month for the concerned month. In other words, if you have to pay the amount deducted by you as TDS in the month of April, then it must be done by 7th of May. Thus, in case the payment is not made by the due date then interest on the due amount charged on a monthly basis at the rate of 1.50% on the due amount.
FAQs
✅How is TDS calculated?
TDS is calculated based on the threshold limit and TDS rate specified by the Income Tax Department for a certain payment.
✅What is the TDS rate?
TDS rate is the percentage specified in the Income Tax Act on the basis of which tax needs to be deducted at source for certain specified payments.
✅What percentage of TDS is deducted?
The percentage of TDS deducted is specified separately for each type of payment which is covered under TDS.
✅What is the minimum amount for TDS deduction?
Not every payment has a minimum threshold limit. However, there are certain specified payments in which TDS has to be deducted if the total amount paid during the financial year exceeds the prescribed limit.
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