Revised TDS and TCS Rates w.e.f 14/05/2020

 

In order to increase the liquidity in the hands of common people Govt announced various relief measures on 13th May 2020, Wednesday, and among them are the reduction in the rates of TDS/TCS by 25% on Non- Salaried payments. Non Salaried Payments include interest in Fixed Deposits, dividend incomes, etc.

The new rates will come into effect from May 14, 2020, and will remain effective till March 31, 2021, i.e., till the end of the financial year 2020-21.

TDS Rate Chart for FY 2020-2021(AY 2021-2022) after considering the changes w.e.f 14.05.2020 :

Kindly Note amended rates are been given on the basis of PIB Notification dated 13.05.2020 and on the date of Publication of this post no notification in this regard is been notified by the CBDT. Press release can be accessed at the following link-  https://pib.gov.in/PressReleasePage.aspx?PRID=1623745

Section	Nature of Payments	Threshold Limit	TDS effective till May, 13, 2020 TDS effective till May, 13, 2020 Read more at: https://www.caclubindia.com/articles/revised-tds-and-tcs-rates-wef-14-05-2020-41533.asp	TDS effective w.e.f                     May,14,2020
192	Salaries	-	Normal slab rate	Normal slab rate
192A	Premature withrawal From EPF	50,000	Resident - 10%  Non   Resident-10.40% (*)	Resident - 10%  Non Resident-10.40%(*)
193	Interest Received on Securities-  Any security of central and state  Govt;  (i.e 8% Saving (taxable) Bonds, 2003  and 7.75% Saving (taxable) Bonds,        2018	10,000	Resident-10%	Resident-7.5%
	Interest on Securities-  any debentures or securities for money  issued by or on behalf of any local      authority or a corporation, any  debentures issued by companies (listed  on recognised stock exchange) or  interest on any other securities,	5,000	Resident-10%	Resident-7.5%
194	Income by way of dividends	5,000	Resident-10%	Resident-7.5%
194A	Interest (Banks)	40,000	Resident-10%	Resident-7.5%
	Interest (Others)	5,000	Resident-10%	Resident-7.5%
	Interest (to senior citizen)	50,000	Resident-10%	Resident-7.5%
	Interest (on compensation awarded      by payment of motor Accident Claim  Tribunal)	50,000	Resident-10%	Resident-7.5%
194B	Winning from Lotteries,crossword      puzzles, card games and other games   of any sort	10,000	Resident-30%  Non       Resident-31.2% (*)	Resident-30%  Non     Resident-31.2%(*)
194C	Payment to contractors/sub   contractors  Single Payment- -Individuals/HUF -Others	30,000	Resident-1%  Resident-2%	Resident-1%  Resident-1.5%
	Consolidated Payment during the      year-  Individuals/HUF  Others	1,00,000	Resident-1%  Resident-2%	Resident-0.75%  Resident-1.5%
194D	Insurance Commission  Other than company-  Company-	15,000	Resident-5%  Resident-10%	Resident-3.75%  Resident-7.5%
194DA	Payment in respect of Life insurance     Policy	1,00,000	Resident-5%	Resident-3.75%
194E	Non Resident Sportsmen or sport     association	-	Non Resident-     20.8%(*)	Non Resident-     20.8%(*)
194EE	Payments made out of deposits under   NSS	2,500	Resident-10%  Non Resident-     10.4%(*)	Resident-7.5%  Non Resident-     10.40(*)
194F	Repurchase of unit by Mutual Fund or     Unit Trust of India	-	Resident-20%  Non Resident-    20.8%(*)	Resident-15%  Non Resident-    20.8%(*)
194G	Commission, etc on Sale of lottery     tickets	15,000	Resident-5%  Non Resident-     5.2%(*)	Resident-3.75%  Non Resident-    5.2%(*)
194H	Payment of commission or Brokerage	15,000	Resident-5%	Resident-3.75%
194-I	Rent -  i) Plant & Machinery  ii) Land/Building/Furnitur/Fittings	2,40,000	Resident-2%  Resident-10%	Resident-1.5%  Resident-7.5%
194-IA	Transfer of certain immovable     Property other than agriculture land	50,00,000	Resident-1%	Resident-0.75%
194-IB	Rent by Individual/HUF not liable for  Tax Audit (Other than rent covered   under 194-IA)	50,000/P.M	Resident-5%	Resident-3.75%
194-IC	Payment of monetary consideration   under Joint Development Agreements	-	Resident-10%	Resident-7.5%
194J	Payment for fees for Technical     services, Professional services or     royalty etc.	30,000/P.A
	a) Cases, wherein, the payee is       engaged in the business of the              operation of Call Centre only             (effective from 1st June 2017)		Resident-2%	Resident-1.5%
	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) (effective from 1st April 2020)		Resident-2%	Resident-1.5%
	c) Professional royalty where such   royalty is in the nature of    consideration for sale, distribution or   exhibition of cinematographic film		Resident-10%	Resident-7.5%
	d) In case the payee fails to furnish  PAN		Resident-20%	Resident-20%
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    (This Section is inserted by Finance      Act, 2020 which is applicable from     01/04/2020)	-	Resident-10%	Resident-7.5%
194LA	Payment of compensation on   acquisition of certain immovable     property	2,50,000	Resident-10%	Resident-7.5%
194LB	Payment of interest on infrastructure   debt fund	-	Non Resident-    5.20%(*)	Non     Resident-5.20%(*)
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.	-	Resident-10%	Resident-7.5%
194LBA(2)	Payment of the nature referred to in   Section 10(23FC)(a)	-	Non      Resident-5%(*)	Non   Resident-5%(*)
	Payment of the nature referred to in   Section 10(23FC)(b)	-	Non   Resident-10%(*)	Non   Resident-10%(*)
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.	-	(*)  For Non Resident    Individual–  31.20%  For Foreign     Company – 41.6%	(*)For Non    Resident   Individual–    31.20%  For Foreign      Company–     41.6%
194LBB	Investment fund paying an income to  a unit holder [other than income   which is exempt under Section  10(23FBB)]	-	Resident-10%  Non Resident  Individual      –31.20%(*)  Foreign     Company–     41.6%(*)	Resident-7.5%  Non Resident     Individual –     31.20%(*)  Foreign      Company–    41.6%(*)
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.	50,00,000	Resident-5%	Resident-3.75%
194N	Filed the returns of income for all     of the three assessment years relevant  to the three previous years and cash     withdrawals exceeding 1 cr	-	Resident-2%	Resident-2%
	Cash withdrawals exceeding 1 cr	-	Resident-2%	Resident-2%
195	Payment of any other sum to a Non-  resident
	a) Income in respect of investment      made by a Non-resident Indian     Citizen	-	Non Resident-      20.80% (*)	Non Resident-     20.80% (*)
	b) Income by way of long-term      capital gains referred to in Section     115E in case of a Non-resident     Indian Citizen	-	Non Resident-     10.40% (*)	Non Resident-    10.40% (*)
	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	-	Non Resident-     10.40% (*)	Non Resident-     10.40% (*)
	d) Income by way of long-term      capital gains as referred to in Section   112A	-	Non Resident-     10.40% (*)	Non Resident-     10.40% (*)
	e) Income by way of short-term   capital gains referred to in Section      111A	-	Non Resident-    15.6%(*)	Non Resident-    15.6%(*)
	f) Any other income by way of long-  term capital gains [not being long-    term capital gains referred to in     clauses 10(33), 10(36) and 112A	-	Non Resident-    20.8%(*)	Non Resident-    20.8%(*)
	g) Any other income	-	Non Resident-    31.2%(*)	Non Resident-    31.2%(*)

* The rate of TDS are after considering cess @4% and shall be increased by applicable surcharge.

Disclaimer: The contents of this article are for information purposes only and does not constitute an advice or a legal opinion and are personal views of the writer. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up.  The possibility of other views on the subject matter cannot be ruled out.

TDS Rate Chart for FY 2020-2021(AY 2021-2022) after considering the changes w.e.f 14.05.2020

Read more at: https://www.caclubindia.com/articles/revised-tds-and-tcs-rates-wef-14-05-2020-41533.asp

In order to increase the liquidity in the hands of common people Govt on 13th May 2020, Wednesday announced various relief measures, and among them are the reduction in the rates of TDS/TCS by 25% on Non- Salaried payments. No Salaried Payments include interest in Fixed Deposits, dividend incomes, etc. The new rates will come into effect from May 14, 2020, and will remain effective till March 31, 2021, i.e., till the end of the financial year 2020-21,

Read more at: https://www.caclubindia.com/articles/revised-tds-and-tcs-rates-wef-14-05-2020-41533.asp

order to increase the liquidity in the hands of common people Govt on 13th May 2020, Wednesday announced various relief measures, and among them are the reduction in the rates of TDS/TCS by 25% on Non- Salaried payments. No Salaried Payments include interest in Fixed Deposits, dividend incomes, etc. The new rates will come into effect from May 14, 2020, and will remain effective till March 31, 2021, i.e., till the end of the financial year 2020-21,

Read more at: https://www.caclubindia.com/articles/revised-tds-and-tcs-rates-wef-14-05-2020-41533.asp

In order to increase the liquidity in the hands of common people Govt on 13th May 2020, Wednesday announced various relief measures, and among them are the reduction in the rates of TDS/TCS by 25% on Non- Salaried payments. No Salaried Payments include interest in Fixed Deposits, dividend incomes, etc. The new rates will come into effect from May 14, 2020, and will remain effective till March 31, 2021, i.e., till the end of the financial year 2020-21,

Read more at: https://www.caclubindia.com/articles/revised-tds-and-tcs-rates-wef-14-05-2020-41533.asp

In order to increase the liquidity in the hands of common people Govt on 13th May 2020, Wednesday announced various relief measures, and among them are the reduction in the rates of TDS/TCS by 25% on Non- Salaried payments. No Salaried Payments include interest in Fixed Deposits, dividend incomes, etc. The new rates will come into effect from May 14, 2020, and will remain effective till March 31, 2021, i.e., till the end of the financial year 2020-21,

Read more at: https://www.caclubindia.com/articles/revised-tds-and-tcs-rates-wef-14-05-2020-41533.asp