TDS Rate Chart for AY 2021-22

Finance Minister has presented Union Finance Budget on 01^st February 2020. Vide the Budget FM has made various changes in TDS provisions and Introduces TWO New TDS Sections i.e. Section 194K and Section 194O which provides TDS on Mutual Fund Income and TDS on E-Commerce Transactions. There were also changes in few existing sections of TDS which includes amendment in Section 194J by which TDS on Technical Services been reduced to 2%.

1. Section 194K :

2. Section 194O :

Here we come up with TDS rate chart for Assessment Year   2021-22 (Financial Year 2020-21).

Nature of Payment	Sec	Basic Cut-off (Rs.) p.a.	TDS rate for Residents
			Individual and HUF		Other than Individual/ HUF
Payment of Salaries by Employers	192	Slab rates for AY 2021-22	Slab rate		Not applicable
Premature payment by PF Organization from EPF A/c (i.e. before 5 Years).	192A	50,000.00	10%		Not applicable
Payment of Interest on Securities by company.	193	10,000.00	10%		10%
Payment of Dividend (w.e.f. 01.04.2020)	194	2,500.00	10%		10%
Payment of Interest by bank	194A	40000 (Non Sr. Citizen) 50000 (Sr. Citizen)	10%		10%
Payment of Interest by others	194A	5,000.00	10%		10%
Payment of prize from Wining from Lotteries by any person.	194B	10,000.00	30%		30%
Payment of prize from Wining from Horse Race by any person.	194B	10,000.00	30%		30%
Payment to Contractors by any person.	194C	30,000.00 (Single bill) or 1,00,000.00 aggregate bills during the year.	1%		2%
Payment to Transporter Covered u/s. 44E and submit declaration in prescribed format. (i.e. owning less than 10 goods carriages)	194C	–	–		–
Payment to Transporter not covered u/s. 44E (i.e. owning more than 10 goods carriages)	194C	30,000.00 (Single bill ) or 75,000.00 aggregate bills during the year.	1%		2%
Payment of Insurance Commission to agents by Insurance Company.	194D	15,000.00	5%		10%
Payment in respect of maturity of Life Insurance Policy by Life Insurance Company.	194DA	1,00,000.00	1%		1%
Payment to NRI sportsman or association by any person or organization	194E	–	20%		20%
Payment out of deposit under National Saving Scheme (NSS)	194EE	2,500.00	10%		10%
Payment with respect to repurchase of units by Mutual Fund Companies.	194F	–	20%		20%
Payment of Lottery Commission	194G	15,000.00	5%		5%
Payment of commission or Brokerage	194H	15,000.00	5%		5%
Payment of rent on land, building, furniture and fittings.	194I	240,000.00	10%		10%
Payment of rent on plant, machinery or equipments.	194I	240,000.00	2%		2%
Payment made on account of transfer of immovable property other than agriculture land.	194IA	50,00,000.00		1%		1%
Rent payable by individual not covered u/s. 194I for land, building, furniture and fittings	194IB	50,000.00 Per Month	5%		5%
Payment of Professional Fees other than call centers and Technical Fees	194J	30,000.00	10%		10%
Payment of Technical Fees (w.e.f. 01.04.2020)	194J	30,000.00	2%		2%
Payment of Professional Fees to call centers.	194J	30,000.00	2%		2%
Compensation on transfer of certain immoveable property than Agriculture Land	194LA	250,000.00	10%		10%
Payment of any income in respect of: a) Units of a Mutual Fund as per Section 10(23D) b) The Units from the administrator c) Units from specified company (w.e.f. 01.04.2020)	194K	–			10%
Cash withdrawal in excess of Rs. 1 crore during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office	194N		2%		2%
Payment of commission (not being insurance 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.	194M		5%		5%
E-Commerce operator for sale of goods or provision of service facilitated by it through its digital or electronic facility or platform.	194O	500,000.00	1%		1%

To Do List for a Financial Year End

January - The Beginning New Year., You all have planned some new resolutions for these New Year. But are you completed your tax related task  for the end of FY 2019-20???? 
If ans is "Yes" , than much appreciated :-)  
If ans is No, than
You have just 3 months to face it and complete all your necessary tax-related tasks. So, here is a to-do list to  your financial year’s end.

1. Make Tax Saving Investments

Check your Form 12BB, the one that you had submitted to your employer at the beginning of the FY. If you made tall promises in the Form about making various tax saving investments but failed to make good of it, then this is your final chance to set things right. Invest in the tax-friendly investment schemes under section 80C to avail deductions of up to Rs 1.5 Lakh. You can also get an additional tax benefit of Rs 50,000 u/s 80CCD(1B) by investing in NPS.

2. Make Minimum Contributions

If you have an active PPF or NPS account, but you haven’t made any contribution to it this year, do it before the year ends. If you fail to do so by 31st March, your account will be deactivated and you will have to pay some money as reactivation fees.

 3. Do Charity

If you have plans to do some charity, there is no better time than now to do so. Make donations under section 80G/ 80GGA/ 80GGB/ 80GGC by 31st March 2020 to expand your tax gains.

4. Submit Proofs of Investments

One investment alone cannot help you save optimum tax. You may have made several investments and expenses during the FY which can reduce your tax outgo. By submitting the proofs of such investments and expenses, you can stop your employer from deducting TDS on your salary. Generally, employers collect proofs of investment during the months of December and January. However, you can still submit them if your employer allows it for TDS calculation.

5. Submit Form 12B

Did you switch job during the current FY? If yes, but without giving the details of your income from salary received from the previous employer to your new employer then you will get a tax shock at the time of filing ITR. It will happen because your current employer has been incorrectly deducting less TDS from your salary. Submit Form 12B to him to set things right. This will give him a complete knowledge of your current FY’s income which will help him in deducting right amount of TDS.

6. Book your Capital Gain or Loss

It will work if you have investments in equity shares and equity oriented mutual funds. In the Union Budget 2018, the government imposed Income Tax @ 10% on LTCG of more than Rs 1 Lakh on the aforementioned investments.

So, if you are planning to book such gains, better do some of it now. Do not book Capital Gain of more than Rs 1 Lakh in total and save tax on it. You can book the rest later.

You can also reduce your tax liability by booking capital losses on your investments in shares, mutual funds or other securities.

7. Pay Advance Tax

Unless you are operating under the presumptive income scheme, the due date to pay the fourth and final instalment of Advance Tax is, 15th March 2020 is  the due date to pay the last instalment of Advance Tax for FY 2019-20. If you missed it, you are accumulating interest every day under section 234B and section 234C on your due amount. You better pay it as soon as possible to avoid accumulating any more penal interest.

8. Pay TDS on Rental Payments

If the rent you pay to your landlord for your house is high, then you have an additional tax-related obligation. If the rental payment is Rs 50,000 or more, you must deduct TDS @ 5% on the total rent paid during the year. Much to your relief, this is a one-time activity which needs to be done before the end of the FY.

9. File Belated Return

31st March 2020 is the final chance for you to file the ITR for the FY 18-19. In case, you missed the first and second due dates, i.e. 31st July 2019 and 31st December 2019, then you must file it now.

Since your return will now be considered a belated return, you must file it along with an applicable late fee of Rs 10,000 or Rs.1000. However, filing by 31st March will still save you from a heavy non-filing penalty.

10. File Revised Return

With the end of the FY 2019-20, your window of opportunity to revise the tax returns filed for FY 18-19 will also close.

Section 139(5) earlier allowed the filing of revised return at any time before the expiry of one year from the end of the relevant assessment year or before the completion of the assessment, whichever is earlier. But, the said section was amended due to which the period allowed for revision was reduced by one year.

Hence, you can file original as well as revised return only during the assessment year.

So, finish the discussed tasks to end your FY with a solid end.