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
(in %)

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
(10% till Assessment year 2016-17)

194DA

Payment in respect of life insurance policy

w.e.f. 1/9/2019, the tax shall be deducted on the amount of income comprised in insurance pay-out

5

194E

Payment to Non-resident artist/ sportsman/ sports association

20% + Cess

194EE

Payment in respect of deposit under National Savings scheme

10
(20% till 31-5-2016)

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
(10% till 31-5-2016)

194H

Commission or brokerage

5
(10% till 31-5-2016)

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:

i) sum paid or payable towards fees for technical services

ii) sum paid or payable towards royalty in the nature of consideration for sale, distribution or exhibition of cinematographic films;

iii) Any other sum

Note: With effect from June 1, 2017 the rate of TDS would be 2% in case of payee engaged in business of operation of call center.



2


2

10

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
30% in case of other person

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 with effect from 1/09/2019 when aggregate of sum credited or paid during a financial year exceeds Rs. 50 lakh.

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:

i) in excess of Rs. 1 crore

ii) in excess of Rs. 20 lakhs*

* for those persons who have not filed return of income (ITR) for three previous years immediately preceding the previous year in which cash is withdrawn, and the due date for filing ITR under section 139(1) has expired. The deduction of tax under this situation shall be at the rate of:

a) 2% from the amount withdrawn in cash if the aggregate of the amount of withdrawal exceeds Rs. 20 lakhs during the previous year; or

b) 5% from the amount withdrawn in cash if the aggregate of the amount of withdrawal exceeds Rs. 1 crore during the previous year.





2

2 / 5

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
(20% till 31-5-2016)

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
(10% till 31-5-2016)

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
(10% till 31-5-2016)

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
(10% till AY 2016-17)

194DA

Payment in respect of life insurance policy

1
(2% till 31-5-2016)

194EE

Payment in respect of deposit under National Savings scheme

10
(20% till 31-5-2016)

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
(10% till 31-5-2016)

194H

Commission or brokerage

5
(10% till 31-5-2016)

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
(10% till 31-5-2016)

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
(10% till 31-5-2016)

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.
(Rs. 50,000 w.e.f. 1-6-2016)

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
Note:
With effect from 01.06.2015, tax shall be deducted from interest credited or paid by a co-operative bank to its member

194A

If amount paid or payable during the financial year does not exceed Rs.40,000 (Rs.50,000 in case of Senior Citizens)
Note:
a) With effect from 01.06.2015, time deposit shall also include recurring deposit. Therefore, tax shall be deduction from payment of interest on recurring deposit if it exceeds the threshold limit of Rs. 40,000/50,000.
b) The threshold limit of Rs. 40,000/50,000 shall be computed with reference to the income credited or paid by a banking company or co-operative bank (and not by individual branch thereof) which has adopted core banking solutions ('CBS').

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
Note:
With effect from 01.06.2015, no tax shall be deducted at the time of credit of interest on compensation awarded by the Motor Accidents Claims Tribunal.

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
(Rs. 10,000 w.e.f. 1-6-2016)

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
b) If sum paid or payable to contractor in aggregate does not exceed Rs. 75,000 during the financial year (Rs. 1,00,000 w.e.f. 1-6-2016)

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
(Rs. 15,000 w.e.f. 1-6-2016)

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
(Rs. 15,000 w.e.f. 1-6-2016)

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
(Rs. 2.5 Lakhs w.e.f. 1-6-2016)

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:
a) Rs.40,000 where payer is banking company or co-operative society;
b) Rs.5,000 in other case

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:
a) for bullion (excluding any coin or article weighing 10 grams or less), exceeds Rs. 2,00,000
b) for jewellery, exceeds Rs.5,00,000
c) for any other goods, exceeds Rs. 2,00,000
d) for any service, exceeds Rs. 2,00,000

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
In Part B of Form No. 15CA if the amount of payment exceeds Rs. 5,00,000 in aggregate during the financial year and a certificate u/s 195(2)/ 195(3)/ 197 of Income-tax Act has been obtained from the Assessing Officer.
In Part C of Form No. 15CA if the amount of payment exceeds Rs. 5,00,000 in aggregate during the financial year and a certificate in Form No. 15CB has been obtained from a Chartered Accountant.

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:-
i) If payment is made by an individual and it is permissible under Liberalized Remittance Scheme.
ii) If remittance is covered under the Specified list

Liability for payment of advance tax

208

Taxpayer is liable to pay advance-tax if his advance tax liability exceeds Rs. 10,000