TDS Rates for Assessment Year 2020-21 (Financial Year 2019-20)
(A) On payments to Residents (subject to notes below)
Sr.
|
Payments to
Resident Payee
|
Criteria for
Deduction
|
Section
|
Company
Rate (%)**
|
Partnership Firm
Rate (%)**
|
Individual, HUF, AOP,
BOI Rate (%)**
|
1
|
Pre- mature withdrawal from Employee Provident Fund Scheme (Note 1)
|
Payment in excess of Rs. 50,000/-
|
192A
|
–
|
–
|
10
|
2
|
Interest on Securities (Note 2 & Note 3)
|
Payment in excess of Rs. 10,000/-
|
193
|
10
|
10
|
10
|
3
|
Interest on Bank Deposits, Cooperative society carrying on
banking business and Deposits
with Post Office for Senior
Citizens (Note 4)
|
Payment in excess
of Rs. 50,000/- per
financial year (For
Senior Citizens)
|
194A
|
10
|
10
|
10
|
|
Interest on Bank Deposits, Cooperative society carrying on
banking business and Deposits
with Post Office (Note 4) (For
Others)
|
Payment in excess of Rs.
40,000/- per financial
year (For Others)k
|
194A
|
10
|
10
|
10
|
|
Other Interest
|
Payment in excess of Rs. 5,000/- per financial year
|
194A
|
10
|
10
|
10
|
4
|
Winnings from Lotteries, crossword, puzzles, card games and other games of any sort
|
Payment in excess of Rs. 10,000/-
|
194b
|
30
|
30
|
30
|
5
|
Winnings from Horse Race
|
Payment in excess of Rs. 10,000/-
|
194BB
|
30
|
30
|
30
|
6
|
Payments to Contractors (Note 5)
|
Payment in excess of Rs. 30,000/- per transaction or Rs. 1,00,000/- per financial year
|
194C
|
2
|
1
|
1
|
7
|
Insurance Commission
|
Payment in excess of Rs. 15,000/- per financial year
|
194D
|
5
|
5
|
5
|
8
|
Sum received for Life Insurance Policy including bonus [ except exempt u/s 10(10D)] (Note 6)
|
Payment in excess of Rs. 1,00,000/- per financial year
|
194DA
|
5
|
5
|
5
|
9
|
Payments in respect of deposits under National Savings Scheme, etc Central Government Schemes
|
Payment in excess of Rs. 2,500/- per financial year
|
194EE
|
10
|
10
|
10
|
10
|
Payments on account of repurchase of units by Mutual Fund or Unit Trust of India.
|
No Threshold Limit
|
194F
|
–
|
–
|
20
|
11
|
Commission on Sale of Lottery Tickets
|
Payment in excess of Rs. 15,000/-
|
194G
|
5
|
5
|
5
|
2
|
Other Commission/ Brokerage
|
Payment in excess of Rs. 15,000/- per financial year
|
194H
|
5
|
5
|
5
|
13(a)
|
Rent for Plant & Machinery, Equipments
|
Payment in excess of Rs. 2,40,000/- per financial year
|
194-I(a)
|
2
|
2
|
2
|
13(b)
|
Rent for Land or Building or Furniture or Fittings
|
Payment in excess of Rs. 2,40,000/- per financial year
|
194-I(b)
|
10
|
10
|
10
|
13
|
Income by way of Rent from SPV distributed by REITs (Note 7)
|
No Threshold Limit
|
194-I
|
–
|
–
|
–
|
14
|
Consideration for Transfer of Immovable Property (other than Agricultural Land) (Note 8)
|
Sale Consideration exceeds Rs. 50,00,000/-
|
194-IA
|
1
|
1
|
1
|
15
|
Income by way of Rent (Note 9 &10 )
|
Rent exceeds Rs. 50,000 p.m. or part thereof
|
194-IB
|
5
|
5
|
5
|
16
|
Monetary Payment in respect of Joint Development Agreement
|
No Threshold Limit
|
194-IC
|
10
|
10
|
10
|
17(a)
|
Professional Fees / Royalties/ Fees for Technical Services
|
Payment in excess of Rs. 30,000/- p.a.
|
194J
|
10
|
10
|
10
|
17(b)
|
Professional Fees (for certain
payees) (Note 11)
|
Payment in excess of
Rs. 30,000 p.a.
|
194J
|
2
|
2
|
2
|
18
|
Consideration for Compulsory
Acquisition of Immovable
Property (other than Agricultural
Land)
|
Payment in excess of
Rs. 2,50,000/-
|
194LA
|
10
|
10
|
10
|
19
|
Income by way of Interest
distributed from SPV distributed
by Business Trusts i.e. REITs &
INVITs
|
No Threshold Limit
|
194LBA
|
10
|
10
|
10
|
20
|
Income other than business
income distributed by an
Alternate Investment Fund
(Category I and II)
|
No Threshold Limit
|
194LBB
|
10
|
10
|
10
|
21
|
Income in respect of investment
in Securitization Trust
|
No Threshold Limit
|
194LBC
|
30
|
30
|
25
|
22
|
Payments to Contractors/
Professionals (Other than
those covered in 194 C &194J)
(Note: 12)
|
Payment in excess of
Rs. 50,00,000/- or
aggregate of such
payment exceeding Rs.
50,00,000/-, during a
financial year
|
194M
|
5
|
5
|
5
|
23
|
Payment by a Banking company
/Banking Institution/ Cooperative society engaged in
banking business/ post office.
(Note 13)
|
Cash withdrawals or
aggregate of such
withdrawals in excess of
Rs. 1,00,00,000/- from
an account maintained
by a recipient, during the
previous year .
|
194N
|
2
|
2
|
2
|
Notes
|
|
1
|
TDS to be deducted at maximum marginal rate in case PAN is not furnished by the deductee.
|
2
|
In case payment of interest on listed debentures to individuals and HUF TDS is required to be deducted on
payments in excess of Rs. 5,000/-
|
3
|
TDS is required to be deducted for interest on 7.75% Savings (Taxable ) Bonds, 2018 exceeding Rs.
10,000/- during the financial year
|
4
|
For interest on Bank Deposits and Deposits with Post Office, the threshold limit is Rs 50,000/- for senior citizens and Rs. 40,000/- for others.
– Also applicable on payment of Interest on time deposits by co-operative banks to its members and payment of interest on Recurring Deposit – Computation of interest income shall be made taking into account income credited or paid by the bank (including all branches) who has adopted core banking solutions. – Computation of interest income shall be made taking into account income credited or paid by the bank (including all branches) who has adopted core banking solutions. |
5
|
No TDS on payment made to contractor who owns ten or less goods carriage at any time during the year and furnishes PAN.
|
6
|
Presently, section 194DA prescribes for deduction of tax at source at the rate of 1% on the gross amount received by a resident under a life insurance policy. It is proposed to amend section 194DA to provide for deduction of tax at source at the rate of 5% of the amount chargeable to Income Tax.
|
7
|
No deduction shall be made under section 194-I of the Act where the income by way of rent is credited or
paid to a Real Estate Investment Trust.
|
|
No TDS is required to be deducted on remittance of Passenger Service Fees by an Airline to Airline
Operator (Circular No. 21/2017)No TDS is required to be deducted on remittance of Passenger Service
Fees by an Airline to Airline Operator (Circular No. 21/2017)
|
8
|
W.e.f. 01/09/2019, new clause “aa” has been inserted to Section 194-IA’s explanation, whereby the term
“Consideration for immovable property” has been defined :”to include all charges of the nature of club
membership fee, car parking fee, electricity or water facility fee, maintenance fee, advance fee or any other
charges of similar nature, which are incidental to transfer of the immovable property”
|
9
|
Provisions of Section 194-IB are applicable in cases where the deductor is individuals or HUFs other than
those covered by Tax Audit u/s 44AB in immediately preceding financial year, subjects to the threshold
and other conditions.
|
10
|
Deduction u/s 206AA shall not exceed Amount of Rent payable for last month of previous year (March) or
last month of tenancy, as the case maybe.
|
11
|
TDS is to be deducted u/s 194J @ 2% where the payee is only engaged in the business of operation of
call centre.
|
|
Any payments to a director of a company other than those which are “salaries” are specifically covered
u/s 194J.
|
12
|
New Section 194M shall come into effect from 01/09/2019, and shall be applicable only to person, being
an individual or a Hindu undivided family (other than those who are required to deduct income-tax as per
the provisions of section 194C or section 194J).
|
13
|
New Section 194N shall come into effect from 01/09/2019. Also the section shall not apply to any
payments made to Government, Banking company, Co-operative society engaged in Banking business,
Business correspondent/ White label automated teller machine operator of such Banking company or
Co-operative society.
|
14
|
In cases in which tax has to be deducted under sections 193, 194, 194A, 194B, 194BB, 194D,194LBA,
194LBB, 194LBC,192A, 194C, 194DA, 194E, 194EE, 194F,194G, 194H, 194-I, 194-IA, 194-IB, 194-IC,
194J, 194LA, 194LB, 194LBA, 194LBB, 194LBC, 194LC,194LD, 194M, 194N, 196B, 196C, 196D and
195 the rate at which the tax is to be deducted shall be increased by applicable surcharge.
|
**
|
TDS shall be deducted u/s 206AA @ 20% or the higher rate as provided under the Act, if PAN is not
furnished by the deductee
|
**
|
No TDS is required to be deducted in case where the payee is an entity whose income is exempt u/s 10
and is not required to file returns as per Section 139. (Circular No. 18/2017)
|
**
|
Certificate for deduction at lower rate can be applied for Sections 192, 193, 194, 194A, 194C, 194D,
194G, 194H, 194-I, 194J, 194K, 194LA, 194LBB, 194LBC, 194M.
|
**
|
Certificate for nil rate of tax deduction can be applied for Sections 194, 194EE, 192A, 193, 194A, 194DA,
194K, 194-I.
|
**
|
No TDS where the deductee furnishes a self- declaration in Form 15G/ 15H for deduction of tax under
Sections 194, 194EE, 192A, 193, 194A, 194D, 194DA, 194-I and 194K.
|
**
|
As per Section 196, no deduction of tax shall be made by any person from any sums payable to Government,
RBI, a Corporation established under Central Act, a Mutual Fund specified under section 10(23D).
|