TDS Rates and Threshold Limit

What is TDS

TDS stands for Tax Deducted at Source. This is a mechanism for collecting direct tax at the time of payment. The income tax department introduced this mechanism for direct tax collection like Salary, Rent, Commission, Professional and Technical, Contractor, Interest, etc.

TDS Rates and Threshold Limit for FY 2020-21

SectionNature of PaymentThreshold Limit for deduction taxRate of TDS applicable for the period or Basic Cut off (Individual New Rate %)Rate of TDS applicable for the period or Basic Cut off (Company New Rate %)Rate of TDS applicable for the period or Basic Cut off (Others New Rate %)Rate of
TDS
applicable
for the
period
(No Pan or Invalid Pan)
IndividualCompanyOtherNo Pan or Invalid PAN 
(Rate)
192SalaryAs per Slab [Please note that no Change in Slab Rates have been introduced for FY 2021-22]Slab RatesSlab Rates30
192APremature withdrawal from Employee Provident Fund (Payment of accumulated balance of provident fund which is taxable in the hands of an employee)Rs. 50000.0010NANA20
193Interest on securitiesRs. 2500.00101020
194Dividend other than the dividend as referred to in Section 115-ORs. 5000.00101020
194AInterest other than interest on securities – Banks Time deposits, Recurring deposit and Deposit in Co-op Banks·         Senior Citizen Rs. 50000.001020
·         Others Rs. 40000.00
194BIncome by way of winnings from lotteries, crossword puzzles, card games and other games of any sortRs. 10000.00303030
194BBIncome by way of winnings from horse racesRs. 10000.00303030
194 CPayment to Contractors·         Single payment : Rs. 30,0001220
·         Aggregate payment: Rs. 100000
194CContract – Transporter not covered under 44AE·         Single payment : Rs. 30,0001220
·         Aggregate payment: Rs. 75000
194 – DInsurance commissionRs. 15000.0051020
194 -DAPayment in respect of life insurance policy, the tax shall be deducted on the amount of income comprised in insurance pay -outRs. 1000005520
194 – EPayment to non -resident sportsmen/ sports association202020
194 -EEPayment in respect of deposit under National Savings schemeRs. 2500.00101020
194 -EEPayment on account of repurchase of unit by Mutual Fund or Unit Trust of India202020
194 – GCommission on sale of lottery ticketsRs. 15000.005520
194 – HCommission or brokerageRs. 15000.005520
194 – IRENT
194 -I(a) Plant & MachineryRs. 240000.002220
194 -I(b) Land or building or furniture or fittingRs. 240000.00101020
194 -IATransfer of certain immovable property other than agriculture landRs. 50,00,000.001120
194 -IBPayment of Rent by Individuals or HUF not liable for Tax AuditRs. 50,000 per month520
194 -ICPayment of monetary consideration under Joint Development Agreements101020
194 -JFees for professional or technical services:

Fees for professional or technical services. If recipient is engaged in business of operation of call Centre If sum is payable towards fees for technical services (other than professional services)
Rs. 300002220
In all other casesRs. 30000101020
194 – KPayment of any income in respect of Units of Mutual fund as per section 10(23D) or Units of administrator or from a specified company101020
194 -LATDS on compensation for compulsory acquisition of immovable PropertyRs. 2,50,000.00101020
194 – LBA(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 holders101020
194 – LBA(2)Distribution of, any interest received or receivable from SPV by Business trust
194 – LBA(3)Distribution of, any income received from renting or leasing or letting out any real estate asset owned directly by Business trust
194 -LBPayment of interest on infrastructure debt fund to Non Resident5520
194 -LBBInvestment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)]101030
194 -LBCIncome in respect of investment made in a securitization trust (specified in Explanation of section 115TCA)251030
194 – MPayment of 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.Rs. 50,00,000.005520
194 – NCash withdrawal20
194 – OApplicable for E -Commerce operator for sale of goods or provision of service facilitated by it through its digital or electronic facility or platform.Rs.5,00,000.001120
194 – QPurchase of goods (applicable w.e.f 01.07.2021)Rs 50,00,000.000.10.1
195Payment of any other sum to a Non -resident
194 – PTDS on Senior Citizen above 75 Years
206 -ABTDS on non -filers of ITR

Disclaimer:- TDS Rates and Threshold Limit for FY 2020-21 are subject to amendments from time to time.

For any query or complaint mail at [email protected]

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