Finance Minister has presented Union Finance
Budget on 01st 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 :
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)
|
–
|
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%
|
||||
