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Revised TDS Rate Chart for FY 2020-21 (w.e.f May 14, 2020)

May 15, 2020

revised-TDS-Chart-2020

Covid has left the entire world in a panic situation. Government is announcing bunch of measures to pump liquidity in the market.

Through Press release on Revised TDS rates post Covid on May 13th, 2020, CDBT announced Revised TDS rates and TCS for certain sections. Please do note that all sections rates are not reduced.

For the benefit of our readers, we have summarized complete revised TDS Rates applicable for FY 2020-21 (AY 2021-22) effective May 14th, 2020. (COVID TDS Rates).

New TDS Rates For Assessment year 2021-22:

TDS DetailsReduced TDS Rates (in %) (AY 2021-22) effective May 14th, 2020Earlier TDS Rates (in %) (AY 2021-22)
1 where the person is resident in India-

Section 192: Payment of salaryNo ChangesNormal Slab Rate/New Reduced Slab Rate
Section 192A: Payment of accumulated balance of provident fund which is taxable in the hands of an employee.(Monetary Limit – Rs 50,000)No Changes10
Section 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;7.510
b) any debentures issued by a company where such debentures are listed on a recognized stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder;7.510
c) any security of the Central or State Government; [i.e. 8% Savings (Taxable) Bonds, 2003 and 7.75% Saving (Taxable) Bonds, 2018] (Monetary Limit – Rs 10,000)7.510
d) interest on any other security7.510
Section 194: Dividend to Domestic Companies7.510 (Monetary Limit – Rs 5,000) (w.e.f. 01/04/2020)
Section 194A: Interest other than interest on securities – Others (Monetary Limit – Rs 5,000)7.510
Section 194A: Banks / Co-operative society engaged in business of banking / Post Office (Monetary Limit – Rs 40,000)7.510
Section 194A: Senior citizen Interest To Senior Citizen from Deposits with banks. Deposits with post offices. Fixed deposit schemes. Recurring deposit schemes. (Monetary Limit – Rs 50,000)7.510
Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort (Monetary Limit – Rs 10,000)No Changes30
Section 194BB: Income by way of winnings from horse races (Monetary Limit – Rs 10,000)No Changes30
Section 194C: Payment to contractor/sub-contractor (Monetary Limit – Rs 30,000 per contract or Rs 1,00,000 for aggregate amount during the year)

a) HUF/Individuals0.751
b) Others1.52
Section 194D: Insurance commission (Monetary Limit – Rs 15,000)3.755
Section 194DA: Payment in respect of life insurance policy, the tax shall be deducted on the amount of income comprised in insurance pay-out (Monetary Limit – Rs 1,00,000)3.755
Section 194EE: Payment in respect of deposit under National Savings scheme (Monetary Limit – Rs 2,500)7.510
Section 194F: Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India1520
Section 194G: Commission, etc., on sale of lottery tickets (Monetary Limit – Rs 15,000)3.755
Section 194H: Commission or brokerage (Monetary Limit – Rs 15,000)3.755
Section 194-I: Rent (Monetary Limit – Rs 2,40,000)

a) Plant & Machinery1.52
b) Land or building or furniture or fitting7.510
Section 194-IA: Payment on transfer of certain immovable property other than agricultural land (Monetary Limit – Consideration exceeding Rs 50,00,000)0.751
Section 194-IB: Payment of rent by individual or HUF not liable to tax audit (Monetary Limit – Rent for the month or part of the month exceeds Rs 50,000)3.755
Section 194-IC: Payment of monetary consideration under Joint Development Agreements7.510
Section 194J: TDS on Technical Services:Payment for fees for Technical services, Professional services or royalty etc. (Monetary Limit –Rs 30,000 p.a) -

a) Cases, wherein, the payee is engaged in the business of the operation of Call Centre only1.52
b) In case of fees for technical services (not being a professional royalty where such royalty is in the nature of consideration for sale, distribution or exhibition of cinematographic film): New Amendment effective from 1st April 2020)7.52
c) Professional royalty where such royaltyis in the nature of consideration for sale, distribution or exhibition of cinematographic film7.510
d) In case of fees for any other professional services7.510
e) In case the payee fails to furnish PANNo Changes20
Section 194K: Payment of any income in respect of a) Units of a Mutual Fund as per Section 10(23D) b) Units from the administrator c) Units from specified company New Amendment effective from 1st April 2020)7.510
Section 194LA: Payment of compensation on acquisition of certain immovable property (Monetary Limit –Rs 2,50,000 p.a.)7.510
Section 194LBA(1): Business trust shall deduct tax while distributing, any interest received or receivable by it from a SPV or any income received from renting or leasing or letting out any real estate asset owned directly by it, to its unit holders.7.510
Section 194LBB: Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)]7.510
Section 194LBC: Income in respect of investment made in a securitisation trust (specified in Explanationof section115TCA)18.5% in case of Individual or HUF 22.5% in case of other resident person25% in case of Individual or HUF 30% in case of other resident person
Section 194M: Payment of commission (not being insurance commission), brokerage, contractual fee, 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. Tax shall be deducted under section 194M when aggregate of sum credited or paid during a financial year exceeds Rs. 50 lakh.3.755
Section 194N: a) Filed the returns of income for all of the three assessment years relevant to the three previous years and cash withdrawals exceeding 1 crNo Changes2
b) Not Filed the returns of income for all of the three assessment years relevant to the three previous years: (This provision is applicable w.e.f. 01st July, 2020) Cash withdrawals from 20 Lakhs to 1 CrNo Changes2
Cash withdrawals exceeding 1 CrNo Changes2% till 30th June, 2020 and 5% from 01st July, 2020
Section 194O: Applicable for E-Commerce operator for sale of goods or provision of service facilitated by it through its digital or electronic facility or platform. In case the E-commerce participant does not furnish PAN or Aadhar Number to the e-commerce operator, TDS shall be deducted at the rate of5% under section 206AA of the Act (This Section is inserted by Finance Act, 2020 which is applicable from 01/10/2020)0.751

Further a flat 25% reduction in TCS rates has also been done.

Refer our separate discussion on TDS on Non-residents or write an email to our expert at Info@tya.co.in for free analysis of your TDS on non-resident queries.

In case you wish to automate your TDS compliances, you can subscribe to automated E-Procurement Software. As a support to MSMEs in this difficult time, TYASuite is offering 6 months free subscription to their E-Procurement Software. Avail the Free Subscription today.

Deepak Kumar Daga

Professional & Qualified Chartered Accountant with more than 9+ years Experience.
Expert in the field of Direct Tax & Indirect taxes Consultancy, Bank Audits, Statutory Audit, Tax Audit, Accounting, GST, Income Tax, Concurrent Audit, Valuation of Securities and Financial Assets.