• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Compare Online Insurance Plans in India - MintWise

Term Insurance, Travel Insurance, Student Travel and Medical Insurance, Health Insurance, Cancer Insurance, Critical Illness Insurance

  • Product Quotes
    • Term Insurance
    • Health Insurance
    • Motor Insurance
    • Student Insurance
    • Critical Illness Insurance
    • Personal Accident Insurance
    • Cancer Insurance
    • Resume Application
  • Blog
  • IRDA Compliance
    • License
    • Privacy Policy
    • Terms of Use
    • Disclaimers
    • User Content Policy
    • All from Legal
  • Tax

TDS & TCS Rates (Part 1) – Budget 2019

TDS
  • Author

    Vatsaraj & Co.

  • Date

    August 8, 2019

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).


Related Posts

  • Corporate Tax
    Corporate Taxation – Budget 2019
  • TDS
    TDS & TCS Rates (Part 2) – Budget 2019
  • major policy announcement - budget 2019
    Major Policy Announcements – Budget 2019

Primary Sidebar

What are you looking for?

SAVE!!!
Term Insurance
of   1 Crore - 55% Off!
@ just Rs. 5,728 / year*
DATE OF BIRTH
SMOKING / TOBACCO
Yes No
GENDER
Male Female
* for a healthy 25-yr old Non-smoker Male for 25 years.

Recent Posts

  • claim-settlement-ratio-irda-2019-2020Claim Settlement Ratio for Term Insurance by IRDA : 2020-2021
  • Family ProtectionThe Best Term Insurance Plans of 2022
  • claim-settlement-ratio-irda-2019-2020Claim Settlement Ratio for Term Insurance by IRDA : 2019-2020
  • Group Health InsuranceGroup Health Insurance (GHI) made Mandatory for Employers
  • important of term insuranceThe Importance of Term Insurance

Copyright © 2023 · Genesis Sample on Genesis Framework · WordPress · Log in

1800 2121 344

Mon - Sat: 10 AM TO 7 PM

info.mintwise@platinumone.co.in

Email Us

Live chat

Mon - Sat: 10 AM TO 7 PM

+91 86526 45424

WhatsApp 24 x 7

Insurance is the subject matter of the solicitation.

Product and related information like Claim Settlement ratios displayed on www.mintwise.com is based on the information received from the Insurers and/or as published by the IRDAI, the Insurance Regulator.

Corporate Office : PlatinumOne Insurance Broking Private Limited, Unit No. 907, 9th Floor Lodha Supremus II, Plot No. F-4 & F-4/1, Rd No.22, Wagle Estate, Thane (West), Thane 400 604, Maharashtra, India.