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Revised TDS and TCS Rates wef 14/05/2020

Priyanka Sah 
on 15 May 2020

LinkedIn


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,

Revised TDS and TCS Rates wef 14/05/2020

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

    

Section

Nature of payment

Threshold limit

TDS effective till  May, 13, 2020

TDS effective w.e.f May, 14,2020

     

Resident

Non- resident

Resident

Non- resident

192

Salaries

-

Normal slab rate

Normal slab rate

Normal slab rate

Normal slab rate

192A

Premature Withdrawal from EPF

50000

10%

10%

10%

10%

193

Interest received on Securities-

any security of the Central or State Government;

[i.e. 8% Savings (Taxable) Bonds, 2003 and 7.75% Saving (Taxable) Bonds, 2018]

10000

10%

-

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,

5000 in case of individual

10%

-

7.5%

-

194

Income by way of dividends

5000

10%

-

7.5%

-

194A

Interest(banks)

40000

10%

-

7.5%

-

 

Interest (others)

5000

10%

-

7.5%

-

 

Interest (to senior citizen)

50000

10%

-

7.5%

-

 

Interest (on compensation awarded by payment of motor Accident Claim Tribunal)

50000

10%

-

7.5%

-

194B

Winning from lotteries

10000

30%

30%

30%

30%

194BB

Winning from horse races

10000

30%

30%

30%

30%

194C

Payment to contractors/sub contractors

Single payment-

Individual/HUF

Others

Consolidated payment during the Year-

Individual/HUF

others

30000

100000

1%

2%

1%

2%

-

-

-

-

0.75%

1.5%

0.75%

1.5%

-

-

-

-

194D

Insurance commission

Other than company-

Company-

15000

5%

10%

-

-

3.75%

7.5%

-

-

194DA

Payment in respect of Life insurance policy

100000

5%

-

3.75%

-

194E

Non Resident Sportsmen or sports association

-

NA

20%

NA

20%

194EE

Payment made out of deposits under NSS

2500

10%

10%

7.5%

10%

194F

repurchase of unit by Mutual Fund or Unit Trust of India

-

20%

20%

15%

20%

194G

Commission, etc., on sale of lottery tickets

15000

5%

5%

3.75%

5%

194H

payment of commission or brokerage

15000

5%

-

3.75%

-

194-I

Rent-

Plant & machinery

Land/building/furniture/fittings

240000

2%

10%

-

1.5%

7.5%

-

194-IA

transfer of certain immovable property other than agricultural land

5 lakh

1%

0.75%

-

194-IB

Rent by Individual/HUF not liable to Tax Audit (other than rent covered under 194-I)

50000 pm

5%

-

3.75%

-

194-IC

Payment of monetary consideration under Joint Development Agreements to Individual /HUF

-

10%

-

7.5%

-

194J

Professional Fees

30000

10%

-

7.5%

-

 

Technical fees

30000

2%

-

1.5%

-

 

Payment to call centre operators (w.e.f June 1, 2017)

30000

2%

-

1.5%

-

 

Director’s fee

-

10%

-

7.5%

-

194K

Payment of any in respect of :(w.e.f : 1-04-2020)

  1. Units of MF as per sec 10(23D)
  2. Units from the administrator
  3. Units from specified company

5000

10%

-

7.5%

-

194LA

compensation on acquisition of certain immovable property(other than agricultural land)

250000

10%

-

7.5%

-

194LB

Income by way of Interest from infrastructure debt fund to Non Resident(not being a company or to a foreign company)

-

5%

-

5%

-

194 LBA

Income from the units of business trust:

-interest received/receivable from special purpose vehicle; or

-Dividend referred to in sub sec (7) of sec 115-O

 

10%

10%

5%

10%

7.5%

7.5%

5%

10%

 
 

Distribution of rental income to unit holders:

-other than company

-company

-

10%

10%

30%

40%

7.5%

7.5%

30%

40%

194LBB

Income in respect of units of investment funds:

-other than company

-company

-

10%

10%

30%

40%

7.5%

7.5%

30%

40%

194LBC

Income in respect of investment made in a securitisation trust :

-individual/HUF

-other person

-company

-

25%

30%

30%

30%

30%

40%

18.75%

22.5%

22.5%

30%

30%

40%

194LC

Income by way of interest by an Indian specified company to a non-resident/foreign company on foreign currency approved loan / long-term infrastructure bonds from outside India

-

-

5%

-

5%

 

Income by way of interest by an Indian specified company on rupee denominated bond / any long-term bonds from outside India, which is listed only on a recognized stock exchange located in any IFSC

-

-

4%

-

4%

194LD

Interest on rupee denominated bonds of an Indian company or govt securities to a foreign institutional investors or qualified foreign investor

-

-

5%

-

5%

194M

Payment made to professional or commission or brokerage

5000000

5%

-

3.73%

-

194N

Cash payment /withdrawal of certain amount

1 crore

2%

2%

2%

2%

194N

Cash payment/ withdrawal of certain amount -assessee has not filed the ITR for 3 PY immediately preceeding the previous year in which cash is withdrawn

  1. Exceeding 20 lakh but upto Rs 1 crore
  1. Exceeding 1 crore

20 lakh

2%

5%

2%

5%

2%

5%

2%

5%

194-O

Payment by e-commerce operator to e commerce participant

500000

1%

-

0.75%

-

195

Income of investment by an NRI

-

-

20%

-

20%

 

LTCG u/s:

115E/112(1)(c)(iii)/112A

-

-

10%

-

10%

 

Any other LTCG

-

-

20%

-

20%

 

STCG u/s 111A

-

-

15%

-

15%

 

Interest income payable by Govt./Indian concern (other than section 194LB or 194LC)

-

-

20%

-

20%

 

Royalty

-

-

10%

-

10%

 

Fees for technical services

-

-

10%

-

10%

 

Other income

-other than company

-company

-

-

30%

40%

-

30%

40%

 

Income in respect of:

-units of mutual funds u/s 10(23D) or UTI

-

-

20%

 

20%

196B

Income from units to an offshore fund

-

-

10%

-

10%

196C

Income from foreign currency bond or GDR of Indian company

-

-

10%

-

10%

196D

Income of foreign institutional investors from securities

-

-

20%

 

20%

* The rate of TDS shall be increased by applicable surcharge and Health & Education cess.

TCS Rates effective from May 14, 2020 for FY 2020-2021(AY: 2021-2022):

    

Section

Nature of payment

TDS effective till May13,2020

TDS effective w.e.f

May,14,2020

206C

Sale of tendu leaves

5%

3.75%

206C

Sale of timber obtained under forest lease

2.5%

1.88%

206C

Sale of timber obtained by any other mode

2.5%

1.88%

206C

Sale of any other forest produce not being timber/tendu leaves

2.5%

1.88%

206C

Sale of scarp

1%

0.75%

206C

Alcoholic liquor for human consumption and Indian made foreign liquor

1%

1%

206C

Sale of Mineral, being coal, iron ore, lignite

1%

0.75%

206C

Grant of license, lease etc of parking lot

2%

1.5%

206C

Grant of license, lease etc of Toll Plaza

2%

1.5%

206C

Grant of license, lease etc of mining and Quarrying

2%

1.5%

206C

Sale of motor vehicle above 10 lakhs

1%

0.75%

206C

Sale of any other goods

0.1% (w.e.f 01.10.2020)

0.075%

206C

Remittance under Liberalized Remittance Scheme of value exceeding 7 lakh in a financial year

5% (w.e.f 01.10.2020)

5% (w.e.f 01.10.2020)

206C

Sale of overseas tour programme package

5% (w.e.f 01.10.2020)

5% (w.e.f 01.10.2020)

 
 

*No reduction of TDS/TCS where tax to be deducted at a higher rate due to non-furnishing of PAN/Aadhaar.


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