TDS Rates for Current & Previous Financial Years
NOTE: All TDS Rates for Non-Salary payments have been cut by 25%
upto 31 March 2021.
i.e if the rate mentioned in the table above is 10% , TDS
to be done at 10 - 25% = 7.5%.
[For Assessment Year 2020-21; Previous Year 2019-20]
Section |
Particulars |
TDS Rates |
1. In the case of a Person other than a company |
||
1.1 Where the Person is Resident in India- |
||
192 |
Payment of Salary |
Normal Slab Rate |
192A |
Payment of accumulated balance of provident fund which is taxable in the hands of an employee (with effect from 01.06.2015). |
10 |
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; |
10 |
|
b) any debentures issued by a company where such debentures are listed on a recognised stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder; |
10 |
|
c) any security of the Central or State Government; |
10 |
|
d) interest on any other security |
10 |
|
194 |
Dividend other than the dividend as referred to in Section 115-O |
10 |
194A |
Income by way of interest other than "Interest on securities" |
10 |
194B |
Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort |
30 |
194BB |
Income by way of winnings from horse races |
30 |
194C |
Payment to contractor/sub-contractor |
|
a) HUF/Individuals |
1 |
|
b) Others |
2 |
|
194D |
Insurance commission |
5
|
194DA |
Payment in respect of life insurance policy
|
5 |
194E |
Payment to Non-resident artist/ sportsman/ sports association |
20% + Cess |
194EE |
Payment in respect of deposit under National Savings scheme |
10
|
194F |
Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India |
20 |
194G |
Commission, etc., on sale of lottery tickets |
5
|
194H |
Commission or brokerage |
5
|
194-I |
Rent |
|
a) Plant & Machinery |
2 |
|
b) Land or building or furniture or fitting |
10 |
|
194-IA |
Payment on transfer of certain immovable property other than rural agricultural land |
1 |
194-IB |
TDS on Rent of Immovable property. (when Payer is Individual & HUF- other than those covered under 194-I) |
5 |
194-IC |
TDS under Development agreement |
10 |
194J |
Fees for professional or technical services:
|
|
194K |
Income in respect of units payable to resident person |
10 |
194LA |
Payment of compensation on acquisition of certain immovable property |
10 |
194LB |
TDS on Interest on Infrastructure Debt Fund. (Paid to Non Resident/ Foreign co.) |
5 |
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. |
10 |
194LBB |
Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)] |
10 |
194LBC |
Income in respect of investment made in a securitisation trust (specified in Explanation of section115TCA) |
25% in case of Individual or HUF
|
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.
|
5 |
194N |
Cash withdrawal during the previous year from one or more
account maintained by a person with a banking company,
co-operative society engaged in business of banking or a
post office:
|
|
194-O |
Payment or credit of amount by the e-commerce operator to e-commerce participant |
1 |
195 |
TDS on any sum payable to Non Resident/ Foreign co. |
DTAA (Double Taxation Avoidance Agreement) Rate or Rate in Force |
Any Other Income |
10 |
|
1.2 Where the Person is Not Resident in India- |
||
192 |
Payment of Salary |
Normal Slab Rate |
192A |
Payment of accumulated balance of provident fund which is taxable in the hands of an employee. |
10 |
194B |
Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort |
30 |
194BB |
Income by way of winnings from horse races |
30 |
194E |
Payment to non-resident sportsmen/sports association |
20 |
194EE |
Payment in respect of deposits under National Savings Scheme |
10
|
194F |
Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India |
20 |
194G |
Commission, etc., on sale of lottery tickets |
5
|
194LB |
Payment of interest on infrastructure debt fund |
5 |
194LBA(2) |
Business trust shall deduct tax while distributing any interest income received or receivable by it from a SPV to its unit holders. |
5 |
194LBA(3) |
Business trust shall deduct tax while distributing any income received from renting or leasing or letting out any real estate asset owned directly by it to its unit holders. |
30 |
194LBB |
Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)]. |
30
|
194LBC |
Income in respect of investment made in a securitisation trust (specified in Explanation of section115TCA) |
30 |
194LC |
Payment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds (including long-term infrastructure bond) |
5 |
194LD |
Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor |
5 |
195 |
Payment of any other sum to a Non-resident |
|
a) Income in respect of investment made by a Non-resident Indian Citizen |
20 |
|
b) Income by way of long-term capital gains referred to in Section 115E in case of a Non-resident Indian Citizen |
10 |
|
c) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-Section (1) of Section 112 |
10 |
|
d) Income by way of short-term capital gains referred to in Section 111A |
15 |
|
e) Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses (33), (36) and (38) of Section 10] |
20 |
|
f) Income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC) |
20 |
|
g) Income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of Section 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of Section 115A of the Income-tax Act, to a person resident in India |
10 |
|
h) Income by way of royalty [not being royalty of the nature referred to point g) above E] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy |
10 |
|
i) Income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy |
10 |
|
j) Any other income |
30 |
|
196B |
Income from units (including long-term capital gain on transfer of such units) to an offshore fund |
10 |
196C |
Income from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR) |
10 |
196D |
Income of foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities) |
20 |
2. In the case of a Company- |
||
2.1 Where the Company is a Domestic company- |
||
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; |
10 |
|
b) any debentures issued by a company where such debentures are listed on a recognised stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder; |
10 |
|
c) any security of the Central or State Government; |
10 |
|
d) interest on any other security |
10 |
|
194 |
Dividend |
10 |
194A |
Income by way of interest other than "Interest on securities" |
10 |
194B |
Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort |
30 |
194BB |
Income by way of winnings from horse races |
30 |
194C |
Payment to contractor/sub-contractor |
|
a) HUF/Individuals |
1 |
|
b) Others |
2 |
|
194D |
Insurance commission |
5
|
194DA |
Payment in respect of life insurance policy |
1
|
194EE |
Payment in respect of deposit under National Savings scheme |
10
|
194F |
Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India |
20 |
194G |
Commission, etc., on sale of lottery tickets |
5
|
194H |
Commission or brokerage |
5
|
194-I |
Rent |
|
a) Plant & Machinery |
2 |
|
b) Land or building or furniture or fitting |
10 |
|
194-IA |
Payment on transfer of certain immovable property other than agricultural land |
1 |
194J |
Any sum paid by way of a) Fee for professional services, b) Fee for technical services c) Royalty, d) Remuneration/fee/commission to a director or e) For not carrying out any activity in relation to any business f) For not sharing any know-how, patent, copyright etc. |
10 |
194LA |
Payment of Compensation on acquisition of certain immovable property |
10 |
194LBA |
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. |
10 |
194LBB |
Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)] . |
10 |
194LBC |
Income in respect of investment made in a securitisation trust (specified in Explanation of section115TCA) |
10 |
Any Other Income |
10 |
|
2.2 Where the company is Not a Domestic company- |
||
194B |
Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort |
30 |
194BB |
Income by way of winnings from horse races |
30 |
194E |
Payment to non-resident sports association |
20 |
194G |
Commission, etc., on sale of lottery tickets |
5
|
194LB |
Payment of interest on infrastructure debt fund |
5 |
194LBA(2) |
Business trust shall deduct tax while distributing any interest income received or receivable by it from a SPV to its unit holders. |
5 |
194LBA(3) |
Section : Business trust shall deduct tax while distributing any income received from renting or leasing or letting out any real estate asset owned directly by it to its unit holders. |
40 |
194LBB |
Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)]. |
40
|
194LBC |
Income in respect of investment made in a securitisation trust (specified in Explanation of section115TCA) |
40 |
194LC |
Payment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds (including long-term infrastructure bond) |
5 |
194LD |
Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor |
5 |
195 |
Payment of any other sum |
|
a) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-section (1) of Section 112 |
10 |
|
b) Income by way of short-term capital gains referred to in Section 111A |
15 |
|
c) Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses (33), (36) and (38) of Section 10] |
20 |
|
d) Income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC) |
20 |
|
e) Income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1976 where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of Section 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of Section 115A of the Income-tax Act, to a person resident in India |
10 |
|
f) Income by way of royalty [not being royalty of the nature referred to in point e) above C] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy— |
||
A. where the agreement is made after the 31st day of March, 1961 but before the 1st day of April, 1976 |
50 |
|
B. where the agreement is made after the 31st day of March, 1976 |
10 |
|
g) Income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy— |
||
A. where the agreement is made after the 29th day of February, 1964 but before the 1st day of April, 1976 |
50 |
|
B. where the agreement is made after the 31st day of March, 1976 |
10 |
|
h) Any other income |
40 |
|
196B |
Income from units (including long-term capital gain on transfer of such units) to an offshore fund |
10 |
196C |
Income from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR) |
10 |
196D |
Income of foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities) |
20 |
Threshold Limits Under the Income Tax Act
Particulars |
Section |
Threshold Limits |
No deduction of tax at source from salaries |
192 |
If net taxable income is less than maximum amount which is not chargeable to tax (Rs. 2,50,000 for an individual, Rs. 3,00,000 for Senior Citizens and Rs. 5,00,000 for Super Senior Citizens) |
No TDS from payment of provident fund account of an employee |
192A |
If amount paid is less than Rs. 30,000.
|
No TDS from interest paid on debentures issued by a company in which public are substantially interested. Provided interest is paid by account payee cheque to resident individual or HUF |
193 |
If amount paid or payable during the financial year does not exceed Rs. 5,000 |
No TDS from interest on 8% Saving (Taxable) Bonds 2003 paid to a resident persons |
193 |
If amount paid or payable during the financial year does not exceed Rs. 10,000 |
No TDS from interest on 6.5% Gold bonds, 1977 or 7% Gold bonds, 1980 paid to resident individual |
193 |
If a declaration is made that the nominal value of such bonds did not exceed Rs. 10,000 at any time during the previous year |
No TDS from dividend paid by account payee cheque to resident persons |
194 |
If amount paid or payable during the financial year does not exceed Rs.5000 |
No TDS from interest (other than on interest on securities)
paid by a banking company, co-operative bank or specified
public company on time deposits
|
194A |
If amount paid or payable during the financial year does
not exceed Rs.40,000 (Rs.50,000 in case of Senior Citizens)
|
No TDS from payment of interest on deposit with a post office under Senior Citizens Saving Scheme Rules, 2004 |
194A |
If amount paid or payable during the financial year does not exceed Rs. 50,000 |
No TDS from interest other than on securities (in any other case) |
194A |
If amount paid or payable during the financial year does not exceed Rs. 5,000 |
No TDS from interest on compensation awarded by payment of Motor Accident Claims Tribunal |
194A |
If amount paid during the financial year does not exceed
Rs. 50,000
|
No TDS from Lottery / Cross Word Puzzles |
194B |
If amount paid or payable during the financial year does not exceed Rs. 10,000 |
No TDS from winnings from horse races |
194BB |
If amount paid or payable during the financial year does
not exceed Rs. 5,000
|
No TDS from sum paid or payable to contractor |
194C |
a) If sum paid or payable to a contractor in a single
payment does not exceed Rs. 30,000
|
No TDS from insurance commission paid or payable during the financial year |
194D |
If amount paid or payable during the financial year does
not exceed Rs. 20,000
|
No TDS from sum payable under a life insurance a police (including bonus) to a resident (w.e.f. 01-10-2014) person |
194DA |
If amount paid or payable during the financial year does not exceed Rs.1 lakh |
Payment to Non-resident artist/ sportsman/ sports association |
194E |
|
No TDS from payments made out of deposits under NSS |
194EE |
If amount paid or payable during the financial year does not exceed Rs. 2,500 |
No TDS from commission paid on lottery tickets |
194G |
If amount paid or payable during the financial year does
not exceed Rs. 1,000
|
No TDS from payment of commission or brokerage |
194H |
If amount paid or payable during the financial year does not exceed Rs. 5,000 (Rs. 15,000 w.e.f. 1-6-2016). Further no tax to be deducted from commission payable by BSNL/ MTNL to their PCO Franchisees. |
No TDS from payment of rent in respect of land &building, furniture or fittings or plant and machinery |
194-I |
If amount paid or payable during the financial year does not exceed Rs. 2,40,000 |
No TDS from payment of consideration for purchase of an immovable property (other than rural agriculture land) |
194-IA |
If amount paid or payable during the financial year does not exceed Rs. 50 Lakhs |
No TDS on Rent of Immovable property (when Payer is Individual & HUF- other than those covered under 194-I) |
194-IB |
If Rent is upto Rs 50,000 per month / part of the month. |
TDS under Development agreement |
194-IC |
TDS on consideration under a Specified Agreement. |
No TDS from payment of professional fees, technical fees, royalty and directors’ remuneration |
194J |
If amount paid or payable during the financial year does not exceed Rs. 30,000 |
No TDS from payment of compensation on compulsory acquisition of immovable property (other than Agricultural Land) |
194LA |
If amount paid or payable during the financial year does
not exceed Rs. 2 Lakhs
|
No obligation to deduct tax by an Individual or HUF (other than those who are required to deduct income-tax as per the provisions of section 194C, 194H or 194J) responsible for paying any sum to any resident for carrying out any work (including supply of labour for carrying out any work) in pursuance of a contract, by way of commission (not being insurance commission referred to in section 194D) or brokerage or by way of fees for professional services. |
194M |
If aggregate of sum paid or credited during a financial year does not exceed Rs. 50 lakh. |
No obligation to deduct tax by a banking company, co-operative bank or a post office on cash withdrawal made by a person. |
194N |
If aggregate of amount of cash withdrawal during the financial year from one or more account does not exceed Rs. 1 crore/20 lakhs (as the case may be). |
No TDS from payment to participants of e-commerce |
194-O |
If amount paid or payable to resident Individual or HUF during the financial year does not exceed Rs. 5 Lakhs |
Furnishing of quarterly return in respect of payment of interest (other than interest on securities) to residents without deduction of tax |
206A |
If amount paid or payable during the financial year does
not exceed:
|
Every person, being a seller, who receives any amount in cash as consideration for sale of bullion or jewellery or any other goods (other than bullion or jewellery) or providing any service, shall, at the time of receipt of such amount in cash, collect from the buyer income-tax. |
206C |
1% of sale consideration shall be collected as income-tax
if such consideration:
|
Every person being a seller who receives any amount as consideration for sale of motor vehicle shall collect tax at source at the rate of 1% of sale consideration. |
206C |
If sale value of motor vehicle exceeds Rs. 10,00,000 |
Remittance under Liberalized Remittance Scheme |
206C(1G) |
Amount remitted by a buyer during a financial year is less than Rs. 7 lakh and it is for the purpose other than purchase of overseas tour program package |
Sale of Goods |
206C(1H) |
If the aggregate value of sale in any previous year exceeds Rs. 50 lakhs |
A person (not being a banking company) carrying on any business or profession in India may file an application for certificate authorizing receipt of interest and other sums without deduction of tax under section 195 (Subject to certain conditions). |
Rule 29B |
If he has been carrying on business or profession in India continuously for a period of not less than 5 years immediately preceding the date of the application and the value of the fixed assets in India of such business or profession as shown in his relevant books for the earlier year exceeds Rs.50,00,000 |
Any person responsible for paying to a non-resident, not being a company, or to a foreign company, any interest or salary or any other sum chargeable to tax under the provisions of the Act, shall furnish information. |
Rule 37BB |
In Part A of Form No. 15CA if the amount of payment doesn't
exceed Rs. 5,00,000 in aggregate during the financial year
|
Any person responsible for paying to a non-resident, not being a company, or to a foreign company, any sum not chargeable to tax under the provisions of the Act, shall furnish information. |
Rule 37BB |
In Part D of Form No. 15CA. However, there is no reporting
requirement in following cases:-
|
Liability for payment of advance tax |
208 |
Taxpayer is liable to pay advance-tax if his advance tax liability exceeds Rs. 10,000 |