TDS Rate Chart applicable for FY 2021-22

Normally, a person is supposed to pay income tax, at the time of filing his income return for the year. However, the concept of Tax Deducted at Source or TDS, was introduced in India with an aim to deduct tax at the source by deducting it as and when it is originating and not at a later date. Thus, by introducing TDS, the government collected tax in advance so as to lessen the chances of tax evasion by the taxpayer. In this article, we will be discussing the rate of TDS for FY 2021-22.

Rate of Tax Deduction at Source (TDS) [DEDUCT] TDS RATES APPLICABLE FOR F.Y. 2021-22 (A.Y. 2022-23)

TDS Rate Chart applicable for FY 2021-22

Section

Nature of Payment

Threshold Limit for deduction tax

Rates of TDS applicable for the period or Basic Cut off

(Individual/Company and others New Rate %)

Remarks

Individual

Company

Other

If No PAN or Invalid PAN (Rate)

Employment (Salary) related TDS

192

Salary

As per Slab

Slab Rates

Option to choose between new and old tax slabs regime for salaried employees

192A

Premature withdrawal from Employee Provident Fund (Payment of accumulated balance of provident fund which is taxable in the hands of an employee)

No deduction if amount is less than Rs. 50,000

TDS provisions u/s 192A will be applicable when withdrawal of accumulated balance in Recognized Provident Fund is to be included in the total income

-10% in case of Resident and

-10.40% in case of Non-Resident

Interest related TDS

193

Interest on securities

Rs. 5,000

Threshold limit for interest paid on debentures is Rs. 5,000. Threshold limit for interest on 7.75% GOI Savings (Taxable) Bonds 2018 is Rs. 10,000.

194A	Interest other than interest on securities – Banks Time deposits, Recurring deposit and Deposit in Co-op Banks	Senior Citizen Rs. 50,000 • Others Rs. 40,000	10	-	-	20	-
Gambling/Lottery/Horse Race related TDS
194B	Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort	Rs. 10,000	30	30		30
194BB	Income by way of winnings from horse races	Rs. 10,000	30	30		30	Race-income other than horse races like camel races etc. is not covered by this section
Contract related TDS
194C	Payment to Contractors	-Single payment : Rs. 30,000 - Aggregate payment: Rs. 100000	1	2		20

	Contract – Transporter not covered under 44AE	- Single payment : Rs. 30,000 - Aggregate payment: Rs. 1,00,000	1	2	20	TDS is to be deducted at the rate of 2.0% if the payee is an AOP or BOI.
Commission related TDS
194D	Insurance commission	Rs.15,000	5	10	20
194G	Commission on sale of lottery tickets	15000	5	5	20
194H	Commission or brokerage	15000	5	5	20
Rent related TDS
194I	Rent
	194-I(a) Plant & Machinery	Rs. 2,40,000	2	2	20
	194-I(b) Land or building or furniture or fitting	Rs. 2,40,000	10	10	20
194IB	Payment of rent by certain individuals or Hindu undivided family	Rs. 50,000 per month	5		20	No TDS if rent is Rs.50,000 per month or part of the month

Immovable property related TDS
194IA	Transfer of certain immovable property other than agriculture land	Rs. 50,00,000	1	1	20	The Threshold Limit is Rs.50,00,000 for the payment on transfer of certain immovable property other than agricultural land.
194IC	Payment of monetary consideration under Joint Development Agreements		10	10	20
194LA	TDS on compensation for compulsory acquisition of immovable Property	Rs. 2,50,000	10	10	20	No tax will be deducted if payment is made in respect of any award or agreement which has been exempted from levy of income- tax u/s 96 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.
Fees for professional, technical, royalty, etc. related TDS
194J	Fees for professional service	Rs. 30,000 (separately for each)	10%	10%	20%
	Fees for technical service
	Royalty
	Non-compete income
	Sitting fees or commission paid to Independent or Non-executive Director	No Limit

	Fees for Technical Services-Resident Indian & Companies	Rs. 30,000 (separately for each)	2%	2%		20%
	Business of the operation of Call Centre
	Royalty- in the nature of consideration for sale, distribution or exhibition of Cinematographic films
Payment in relation with life insurance policy, deposit under National Savings Scheme, Mutual Fund or Unit Trust of India related TDS
194	Payment of Dividend	Rs. 5,000	10	10	-	20
194DA	Payment in respect of life insurance policy, the tax shall be deducted on the amount of income comprised in insurance pay- out	Rs. 1,00,000	5	5		20	Section 194DA is not applicable in case of amount is exempt u/s 10(10D) i.e. the Sum is received at the time of maturity of policy or Death benefit received. Form 15G/15H can be given wherever applicable.
194EE	Payment in respect of deposit under National Savings scheme	Rs. 2,500	10	10		20	• Resident Indians & Domestic Companies – 10% • Non Resident – 10% + Cess + Surcharge (If Applicable)
194K	Payment of any income in respect of Units of Mutual fund as per section		10	10		20	Units of Mutual Fund have been specified under section 10(23D) of Income Tax Act, 1961.

	10(23D) or Units of administrator or from a specified company				"Administrator", "specified company" and "specified undertaking" are specified u/s 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002.
Business Trust related TDS
194 LBA(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	10	10	20	Interest payment from a SPV and Distribution of dividend by a Business Trust, to Resident unit holders shall be liable for TDS @10%. Whereas, in case of Non-Resident payee, TDS on dividend shall be @ 10% & that on interest payment shall be @5%.
194 LBA(2)	Distribution of, any interest received or receivable from SPV by Business trust				The TDS at the rate of 5.20% is applicable on Non- resident Indians and foreign company in the case of business trust shall deduct tax while distributing any interest income received or receivable by it from a SPV to its unit holders

194 LBA(3)	Distribution of, any income received from renting or leasing or letting out any real estate asset owned directly by Business trust				The TDS at the rate of 31.20% and 41.60%is applicable on Non-resident Indians and foreign company respectively.
Non Resident related TDS
194E	Payment to non- resident sportsmen/ sports association	20	20	20	The rate of TDS shall be increased by applicable surcharge and Health & Education cess.
194 LB	Payment of interest on infrastructure debt fund to Non Resident	5	5	20	The TDS at the rate of 5.20% is applicable on Non- resident Indians and foreign company in the case of Payment of interest on infrastructure debt fund.
194LBB	Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB]	10	10	30	The TDS at the rate of 10%, 31.20%, 10%, and 41.60% will be applicable on resident Indians, Non-Resident Indians, Domestic Companies and foreign companies respectively.
194LBC	Income in respect of investment made in a securitization trust (specified in Explanation of section115TCA)	25	10	30	The TDS at the rate of 25% , 31.20%, 10%, and 41.60% will be applicable on resident Indians, Non- Resident Indians, Domestic Companies and foreign companies respectively.

195

Payment of any other sum to a Non-resident

• The TDS at the rate of 20.80% is applicable on income from investments made by a NRI.

• The TDS at the rate of 10.40% is applicable on income from long -term capital gains under Section 115E for a NRI

• The TDS at the rate of 10.40% is applicable on Income from long -term capital gains.

• The TDS at the rate of 15.60% is applicable on Short -term capital gains under Section 111A

• The TDS at the rate of 20.80% is applicable on any other income from long -term capital gains

• The TDS at the rate of 20.80% is applicable on Interest payable on money borrowed in foreign currency

• The TDS at the rate of 10.40% is applicable on Income from royalty payable by the Government or an Indian concern.

• The TDS at the rate of 10.40% is applicable on Income from royalty other than that which is payable by the Government or an Indian concern.

• The TDS at the rate of 10.40% is applicable on Income from fees for technical services payable by the Government or an Indian concern.

• The TDS at the rate of 31.20% is applicable on Any other source of income

E-commerce related TDS

194O

Applicable for E- Commerce operator for sale of goods or provision of service facilitated by it through its digital or electronic facility or platform.

Rs.5,00,000

No TDS is to be deducted in case of individual or HUF if the gross amount of sale or services during the PY is upto Rs. 5,00,000

Purchase of goods related TDS
194Q	Deduction of tax at source on payment of certain sum for purchase of goods	Rs 50,00,000	0.10	0.10
Others
194F	Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India		20	20	20	Resident Indians & Domestic Companies – 20% Non Resident – 20% + Cess + Surcharge (If Applicable)
194M	Payment of 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.	Rs.50,00,000	5	5	20	The threshold Limit of Rs.50,00,000 payment of commission, brokerage, contractual fee, professional fee to a resident person by an Individual or a HUF who are not liable to deduct 5% TDS by the resident Indians and Domestic Companies respectively.
194N	Cash withdrawal		2	2	20
194P	Deduction of tax in case of specified senior citizen.					Note No. 1

Notes:

1. Following conditions needs to be satisfied-

The senior citizen is resident in India and of the age of 75 years or more during the previous year;
He has only pension income and may also have interest income from the same bank (specified bank – to be notified by the CG) in which he is receiving his pension income;
He shall be required to furnish a declaration to the specified bank. The declaration shall be containing such particulars, in such form and verified in such manner, as may be prescribed.
Specified bank would be required to compute income after giving effect to deductions allowable under Chapter VI-A and rebate under section 87A and deduct Income Tax on the base of rates in force.

2. Once all done, there will not be requirement of furnishing return of income for this assessment year

3. In case of non-availability of PAN :- TDS shall be at the rate specified or rate of 20% whichever is higher