TDS Rates Chart FY 2021-22 In India? TDS or tax deduction at source is a mechanism of income tax reduction at the source of taxable income.
Under this, the Income Tax Department has specified certain types of payments. Requiring the payer to deduct a certain amount specified for that expense while making the payment to the beneficiary.
Tax deducted at source or TDS referred to as a type of tax. Where a person liable to deduct tax for services rendered.
The tax deducted from the total payment amount goes to the government for various types of activities such as infrastructure development, defense, development, etc.
Depending on the type of service, a certain type of tax (TDS) levied from which the recipient expected to deduct. If the person has deducted more than the required tax amount, he will be eligible for a TDS refund.
In order to receive the refund amount, the person has to file his TDS return. TDS can collect on a regular, periodic, or periodic basis, this applies to salary, interest, commissions, fees, etc.
Due to the proliferation of COVID-19 in the country. The Government of India announced on 13 May 2020 a relief package called ‘Atma Nirbha Relief Package’. In this package, one point covered TDS rate cuts for different types of payments. . The benefit declared in the Atma Nirbhar package is applicable only to resident Indians.
READ ALSO : What is TDS -Tax Deducted at Source
Revised TDS Rates Chart for Residents till 31st March 2021
| TDS Section | Nature of Payment | TDS Rate till 13th May, 2020 | TDS Rate from 14th May 2020 to 31st March 2021 |
|---|---|---|---|
| 194 | Dividend | 10% | 7.50% |
| 194A | Income earned as interest other than ‘Interest on securities’ | 10% | 7.50% |
| 192 | Salary | Applicable slab rate | Applicable slab rate |
| 192A | Premature withdrawal from EPF | 10% | 10% |
| 193 | Interest on Securities from – any debenture of security issued by any authority or corporation established by the government, listed debenture of a company, any security of State or Central government, or any other security | 10% | 7.50% |
| 194B | Income from lotteries, card games, puzzles, etc. | 30% | 30% |
| 194BB | Income from Horse races | 30% | 30% |
| 194C | Payment made to contractor/sub-contractor – a) Individual or HUF | 01% | 0.75% |
| b) Others | 02% | 1.50% | |
| 194D | Insurance commission paid – a) Other than a company | 05% | 3.75% |
| b) To Company | 10% | 10% | |
| 194DA | Sum paid to insured with regards to Life Insurance Policy | 05% | 3.75% |
| 194EE | National Saving Scheme | 10% | 7.50% |
| 194F | Repurchase of the unit by MFs or UTIs | 20% | 15% |
| 194G | Commission on sale of lottery tickets | 05% | 3.75% |
| 194H | Commission/Brokerage | 05% | 3.75% |
| 194I | Rent for a) Plant and Machinery | 02% | 1.75% |
| b) Land and Building or Furniture and Fitting | 10% | 7.50% | |
| 194IA | Transfer of immovable property other than agricultural land | 01% | 0.75% |
| 194IB | Rent paid by an individual or HUF and not covered under Section 194I (above ₹ 50,000) | 05% | 3.75% |
| 194IC | Payment under Joint Development Agreement to Individuals/HUF | 10% | 7.50% |
| 194J | a) Any sum paid with respect to Professional fee or director’s fee | 10% | 7.50% |
| b) Payment made with respect to a technical fee or as Royalty for the sale or distribution or exhibition of cinematographic films. | 02% | 1.75% | |
| 194K | Payment made with respect to any of the following: a) MF units as per section 10(23D). b) Units from the specified company or c) Units from an administrator. | 10% | 7.50% |
| 194LA | Compensation for transfer of certain immovable property. | 10% | 7.50% |
| 194LBA | Specified income distributed by a business trust to its unit holder. | 10% | 7.50% |
| 194LBB | Income paid by investors fund to its investors | 10% | 7.50% |
| 194LBC | Income from investment in the securitization of fund a) For Individual/HUF | 25% | 18.75% |
| b) For Company or any other person | 30% | 22.50% | |
| 194M | Certain payments made by HUF or Individual above ₹ 50 lakhs | 05% | 3.75% |
| 194N | Certain payments made in cash: a) Amount more than ₹ 20 lakhs but less than ₹ 1 crore | N.A. | 02% |
| b) Amount exceeds ₹ 1 crore (Applicable from 1st July 2020) | N.A. | 05% | |
| 194O | For E-commerce operators for sale of goods or provision of services facilitated by it through its digital platform (from 1st Oct, 2020) | N.A. | 0.75% |
READ ALSO : What is an Income Tax Refund?
TDS Rates Chart Applicable for Non Resident of India (NRIs)
There is no relief under the Atmairbhar package announced on 13 May 2020 for NRIs. Thus, the TDS rate applicable to non-residents remains the same throughout the year.
| Section | Nature of Payment | TDS Rate |
|---|---|---|
| 192 | Salary | Applicable slab rate |
| 192A | Premature withdrawal of EPF | 10% |
| 194B | Income from lotteries, crossword puzzles, card games, etc. | 30% |
| 194BB | Income from winning horse races | 30% |
| 194E | Any payment made to non-resident sportsman/association | 20% |
| 194EE | Payment with respect to deposits in National Savings Scheme | 10% |
| 194F | Payment on account of repurchase of a unit by MF or UTI | 20% |
| 194G | Commission on sale of lottery tickets | 05% |
| 194LB | The interest of Infrastructure debt fund | 05% |
| 194LBA | Income from business trust units – a) Interest received or receivable from special purpose vehicle | 05% |
| b) Dividend referred in section 115-O(7). | 10% | |
| 194LBC | Income from investment in securitization fund | 30% |
| 194LC | Interest payment by an Indian company or business trust for loan availed in foreign currency. | 05% |
| 194LD | Interest payment on a bond of an Indian company or government security to a foreign investor | 05% |
| 194N | Certain payments made in cash: a) Amount more than ₹ 20 lakhs but less than ₹ 1 crore | 02% |
| b) Amount exceeds ₹ 1 crore (Applicable from 1st July 2020) | 05% | |
| 195 | Various Payments made to Non-Resident a) Income on the investment made by Non-Resident Indian Citizen | 20% |
| b) A long term capital gain referred to in Section 115E | 10% | |
| c) Long-term capital gain referred to in Section 193(1)(c)(iii). | 10% | |
| d) Short term capital gain referred to in section 111A | 15% | |
| e) Any other long term capital gain other than the gain referred to in clauses (33), (36), and (38) of section 10 | 20% | |
f) Income from interest payable by government or Indian concern on a debt availed in a foreign currency other than the income covered in Section 194LB and 194LC | 20% | |
| 196A | Income from MF units under clause (23D) of section 10, or from the specified company in clause (35) of section 10 | 20% |
| 196B | Income from units including long term capital gain or from the transfer of units to offshore fund | 10% |
| 196C | Income from foreign currency bond or GDR of an Indian company | 10% |
| 196D | Income of foreign institutional investors from securities | 20% |
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TDS Rates Applicable on Domestic Company
| Section | Nature of Payment | TDS Rate till 13th May, 2020 | TDS Rate from 14th May, 2020 to 31st March, 2021 |
|---|---|---|---|
| 193 | Interest on Securities | 10% | 7.50% |
| 194 | Dividend | 10% | 7.50% |
| 194A | Interest income other than interest on securities | 10% | 7.50% |
| 194B | Income from lotteries, crossword puzzles, card games, etc. | 30% | 30% |
| 194BB | Income from winning horse races | 30% | 30% |
| 194C | Payment to Contractor/sub-contractor – a) HUF/Individuals | 01% | 0.75% |
| b) Others | 02% | 1.50% | |
| 194D | Insurance Commission | 05% | 3.75% |
| 194DA | Payment of Life Insurance Policy | 05% | 3.75% |
| 194EE | Payment with regards to deposit under National Saving Scheme | 10% | 7.50% |
| 194F | Repurchase of units by MF or UTIs | 20% | 15% |
| 194G | Commission on sale of lottery tickets | 05% | 3.75% |
| 194H | Commission or brokerage | 05% | 3.75% |
| 194I | Rent – a) Plant and Machinery | 02% | 1.75% |
| b) Land and Building or Furniture and Fitting | 10% | 7.50% | |
| 194IA | Payment on transfer of certain immovable property other than agricultural land | 01% | 0.75% |
| 194IB | Rent paid by individual or HUF not covered under Section 194I | 05% | 3.75% |
| 194IC | Payment under Joint Development Agreements to Individual or HUF | 10% | 7.50% |
| 194J | Payment made as – a) Professional fee or director’s fee/remuneration | 10% | 7.50% |
| b) Technical fee or Royalty for sale/distribution/exhibition of cinematography films | 02% | 1.75% | |
| 194LBA | Income distributed by a business trust to its unitholders | 10% | 7.50% |
| 194LA | Payment for acquisition of certain immovable property | 10% | 7.50% |
READ ALSO : How to file Income Tax Returns online
TDS Rates Chart Applicable for Non Domestic Company
Relief in respect of TDS announced under the AtmaNirbhar Relief Package on 13 May 2020 is for residents only; No relief has been announced for non-residents on TDS.
| Section | Nature of Payment | TDS Rate |
|---|---|---|
| 194B | Income from lotteries, crossword puzzles, card games, etc. | 30% |
| 194BB | Income from winning horse races | 30% |
| 194E | Payment to the non-resident sports association | 20% |
| 194G | Commission on sale of lottery tickets | 05% |
| 194LB | Interest on Infrastructure debt fund | 05% |
| 194LBA | Income distributed by business trust to unitholders | 05% |
| 194LBC | Income in respect of securitization of funds | 40% |
| 194LC | Interest payment by an Indian company or business trust for loan availed in foreign currency. | 05% |
| 194LD | Interest payment on a bond of an Indian company or government security to a foreign investor | 05% |
| 195 | Various other payments | |
| a) Long term capital gain referred to in sub-clause (iii) of clause © of subsection (1) of Section 112 | 10% | |
| b) Short term capital gain referred to in section 111A | 15% | |
| c) Any other long term capital gain not referred to in clauses (33), (36), and (38) of section 10 | 20% | |
| d) Income from interest payable by Indian government or Indian concern for loan availed in foreign currency, not covered in Section 194LB and 194LC | 20% | |
| e) Royalty income payable by Indian government or Indian concern (first and second proviso of subsection (1A) of section 115A | 10% | |
| 196B | Income from units including long-term capital gain and transfer of units to offshore funds. | 10% |
| 196C | Income from foreign currency bonds or GDR of an Indian company | 10% |
| 196D | Income of foreign institutional investors from securities | 20% |
FAQ’s on TDS Rates Chart 2021-22
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