Tally

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More


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

Slab Rates

 

30

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

10

NA

 

20

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

10

10

-

20

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

1

1

 

20

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-

  1. The senior citizen is resident in India and of the age of 75 years or more during the previous year;
  2. 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;
  3. 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.
  4. 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

 

TDS on Non-Filers of ITR under section 206AB (applicable w.e.f 01.07.2021)

In case of PAN

Higher of the following rates

  1. Twice the rate specified in the relevant provision of the Act; or
  2. Twice the rate or rates in force; or
  3. At the rate of 5%

In case of non-availability of PAN

Higher of the following rates

  1. Twice the rate specified in the relevant provision of the Act; or
  2. Twice the rate or rates in force; or
  3. At the rate of twenty percent

Tags :



Category Income Tax, Other Articles by - CA.R.S.KALRA 



Comments


update