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% ₹ 50,000 193 Interest on Specified Securities 10% 7.5% ₹ 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% ₹ 10,000 in case of 8% Savings (Taxable) Bonds, 2003 ₹ 10,000 in case of 7.75% Savings (Taxable) Bonds, 2018 during the financial year 194 Dividend 10% 7.5% ₹ 5,000 194A Interest (Other Interest on Securities) 10% 7.5% (a) ₹ 40,000/- where the payer is a banking company (FA, 2019) (b) ₹ 40,000/- where the payer is a co-operative society engaged in carrying on the business of banking; (FA, 2019) (c) ₹ 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) ₹ 5,000/- in any other case (e) For a senior citizen, the threshold limit will be ₹ 50,000/- (FA, 2019) 194B Winning from Lotteries 30% 30% ₹ 10,000 194BB Winning for horse race 30% 30% ₹ 10,000 194C Payment to Individuals and HUF 1% 0.75% ₹ 30,000 per single contract or ₹ 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% ₹ 30,000 per single contract or ₹ 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% ₹ 15,000, if recipient is a resident (other than a company) 10% 10% ₹ 15,000, if recipient is a domestic company 194DA Payment of Life Insurance Policy including bonus 5% 3.75% ₹ 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% ₹ 2500 194F Payment for repurchase of units 20% 15% - 194G Commission, remuneration or prize on sale of lottery ticket 5% 3.75% ₹ 15,000 194H Commission or Brokerage 5% 3.75% ₹ 15,000 194I Rent on land, building or furniture 10% 7.5% ₹ 1,80,000 194I Rent on plant, machinery or equipment 2% 1.5% ₹ 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% ₹ 50,00,000 194IB Payment of rent by certain individuals or Hindu undivided family. [w.e.f. 1.6.2017] 5% 3.75% ₹ 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% ₹ 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% ₹ 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% ₹ 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% ₹ 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 : -₹ 20 lakh (if no ITR has been filed for all the three previous AYs), or -₹ 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 ₹ 50 Lakhs but does not exceed 1 Crores Add Surcharge - 15% if income paid or likely to be paid exceeds ₹ 1 Crores Add Surcharge - 25% if income paid or likely to be paid exceeds ₹ 2 Crores Add Surcharge - 37% if income paid or likely to be paid exceeds ₹ 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 ₹ 1 Crore. Non Resident company Add Surcharge - 2% if the recipient is a foreign company and amount exceeds or likely to exceed ₹ 1 Crore to ₹ 10 Crore. In case of an amount more than ₹ 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.