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May 13, 2020

Revised TDS rates chart for Financial Year 2020-21 and Assessment Year 2021-22 from 14 May 2020

Revised TDS rates chart for Financial Year 2020-21 and Assessment Year 2021-22 from 14th May 2020 as per announcement by Finance Minister on 13 May 2020

The finance minister today has announced the 20 Lakh crore stimulus package in which it was announced that the current TDS rates shall be reduced by 25% from tomorrow till March 31 2021. TDS rates for Salaried persons shall remain unchanged and old rates shall apply as usual i.e. slab rates.

The Major Changes and new TDS section introduced by the Finance minister in the stimulus package will be in force from 14th May 2020.

New Turnover limit for the purpose of Tax deducted at Source (TDS) applicability as per Finance Act 2020

TDS was applicable to individual and HUF if their accounts are liable to Audit in section 44AB in previous year. The Finance Act 2020, says All individuals & HUF will be liable to deduct TDS if, the turnover had cross Rs. 1 Crore in case of business and Rs. 50 Lakhs in case of profession in previous year. These amendments shall take effect from 1st April 2020.

Below is the TDS rate for FY 2020-21. In the below chart applicable from 14th May 2020

  1. Individual include Individual and HUF
  2. Company and others include Company, Firm, LLP, Co-op Society, Local Authority.

Rates of TDS applicable for Financial Year 2020-21 Assessment Year 2021-22:

Nature of PaymentBasic Cut off (Rs.)Individual /Company and others New Rate %)Individual /Company and others (Old Rate %)If No Pan or Invalid PAN (Rate %)
192 – SalariesSlab RateSlab RatesSlab Rates30%
192A- Premature withdrawal from Employee Provident Fund50000Individual: 10% Company: NA
(No Change)
Individual: 10% Company: NA20%
193 – Interest on securitiesIndividual: 7.5% Company: 7.5%Individual: 10% Company: 10%`20%
194 – Dividend other than the dividend as referred to in Section 115-O2500Individual: 7.5% Company: 7.5%Individual: 10% Company: 10%20%
194A – Interest other than interest on securities – Others40000 (for individual)Individual: 7.5%Individual: 10%20%
194A – Banks (Time deposits)40000 (for individual) 50000 (for Senior Citizens only)Individual: 7.5%Individual: 10%
20%
194A – Banks (Recurring deposit)40000 (for individual) 50000(for Senior Citizens only)Individual: 7.5%Individual: 10% 20%
194A – Deposit in Co-op Banks40000 (for individual) 50000(for Senior Citizens only)Individual: 7.5%Individual: 10% 20%
194B – Winning from Lotteries10000Individual: 30% Company: 30%
(No Change)
Individual: 30% Company: 30%30%
194BB – Winnings from Horse Race10000Individual: 30% Company: 30%
(No Change)
Individual: 30% Company: 30%30%
194C- Payment to Contractor – Single Transaction30000Individual: 0.75% Company: 1.5%Individual: 1% Company: 2%20%
194C-Payment to Contractor – Aggregate During the Financial year 100000Individual: 0.75% Company: 1.5%Individual: 1% Company: 2%20%
194C- Contract – Transporter not covered under 44AE30000 / 75000Individual: 0.75% Company: 1.5%Individual: 1% Company: 2%20%
194C- Contract – Transporter covered under 44AE & submit declaration on prescribed form with PAN20%
194D – Insurance Commission15000Individual: 3.75% Company: 3.75%Individual: 5% Company: 5%20%
194DA Payment in respect of life insurance policy100000Individual: 3.75% Company: 3.75%Individual: 5% Company: 5%20%
194E – Payment to Non-Resident Sportsmen or Sports AssociationIndividual: 20% Company: 20%
(No Change)
Individual: 20% Company: 20%20%
194EE – Payments out of deposits under National Savings Scheme2500Individual: 7.5% Company: 7.5%Individual: 10% Company: 10%20%
194F – Repurchase Units by MFsIndividual: 15% Company: 15%Individual: 20% Company: 20%20%
194G – Commission – Lottery 15000Individual: 3.75% Company: 3.75%Individual: 5% Company: 5%20%
194H – Commission / Brokerage15000Individual: 3.75% Company: 3.75%Individual: 5% Company: 5%20%
194I – Rent – Land and Building – furniture – fittings240000Individual: 7.5% Company: 7.5%Individual: 10% Company: 10%20%
194I – Rent – Plant / Machinery / equipment240,000Individual: 1.5% Company: 1.5%Individual: 2% Company: 2%20%
194IA -Transfer of certain immovable property other than agriculture land50,00,000Individual: 0.75% Company: 0.75%Individual: 1% Company: 1%20%
194IB – Rent – Land or building or both50000 per monthIndividual: 3.75%Individual: 5%20%
194IC – Payment of Monetary consideration under Joint development agreementIndividual: 7.5% Company: 7.5%Individual: 10% Company: 10%20%
194J – Professional Fees for technical services (w.e.f. from 1.4.2020)30000Individual: 1.5% Company: 1.5%Individual: 2% Company: 2%20%
194J – Professional Fees in all other cases30000Individual: 7.5% Company: 7.5%Individual: 10% Company: 10%20%
194K- Payment of any income in respect of Units of Mutual fund as per section 10(23D) or Units of administrator or from a specified companyIndividual: 7.5% Company: 7.5%Individual: 10% Company: 10%20%
194LA – TDS on compensation for compulsory acquisition of immovable Property250000Individual: 7.5% Company: 7.5%Individual: 10% Company: 10%20%
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. Individual: 7.5% Company: 7.5%Individual: 10% Company: 10%20%
194LB – Income by way of interest from infrastructure debt fund (non-resident)Individual: 5% Company: 5%
(No Change)
Individual: 5% Company: 5%20%
194LBB – Income in respect of investment in Securitisation trust.Individual: 7.5% Company: 22.5%Individual: 10% Company: 30%30%
194LBC- Income in respect of investment made in a securitisation trustIndividual: 18.75% Company: 22.5%Individual: 25% Company: 30%30%
194 LC – 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 IndiaIndividual: 5% Company: 5%
(No Change)
Individual: 5% Company: 5%20%
194LD – Interest on certain bonds and govt. SecuritiesIndividual: 5% Company: 5%
(No Change)
Individual: 5% Company: 5%20%
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.50,00,000Individual: 3.75% Company: 3.75%Individual: 5% Company: 5%20%
194N – Cash withdrawal in excess of Rs. 20 Lakh 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.20,00,000Individual: 2% Company: 2%
(No Change)
Individual: 2% Company: 2% 20%
194N – 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.100,00,000Individual: 2% Company: 2%
(No Change)
Individual: 2% Company: 2% 20%
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.Individual: 0.75% Company: 0.75%Individual: 1% Company: 1% 20%
195- Payment of any sum to Non residentHigher of Rate in force or Double Taxation Avoidance Act rate
196B – Income from unitsIndividual: 10% Company: 10%
(No Change)
Individual: 10% Company: 10%20%
196C-Income from foreign currency bonds or GDR (including long-term capital gains on transfer of such bonds) (not being dividend)Individual: 10% Company: 10%
(No Change)
Individual: 10% Company: 10%20%
196D – Income of FIIs from securitiesIndividual: 20% Company: 20%
(No Change)
Individual: 20% Company: 20%20%

The TDS on E Commerce Participant under Section 194-0 is 1% for period 01 April 2020 to 13 May 2020. and it will be 0.75% from 14 May 2020 to 31 March 2021

Further the TDS on the amount paid or credited during the period from 14 May 2020 to 31 March 2021 shall be deducted at the reduced new rates as specified in the table. Similarly the tax on the amount received and debited during the period from 14 May 2020 to 31 March 2021 shall be collected at new rates as specified in the table

In case where there is no PAN card available, Tax is required to be deducted at highter rates, the TDS rates are not reduced due to non furnishing of PAN or AADHAAR Card

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Due dates for TDS quarterly Returns:

QuarterPeriodDue Date
Q11 April 2020 – 30 June 202031st July 2020
Q21 July 2020 – 30 September 202031st October 2020
Q31 October 2020 – 31 December 202031st January 2020
Q41 January 2020 – 31 March 202131st May 2021

Due dates for TDS payment:

MonthDue date for Government deductorsDue date for other deductors (Company, Individual, HUF etc)
April7th May 20207th May 2020
May7th June 20207th June 2020
June7th July 20207th July 2020
July7th August 20207th August 2020
August7th September 20207th September 2020
September7th October 20207th October 2020
October7th November 20207th November 2020
November7th December 20207th December 2020
December7th January 20217th January 2021
January7th February 20217th February 2021
February7th March 20217th March 2021
March7th April 202130th April 2021

Interest on late payment and Late deduction of TDS:

As per section 201(1A) Interest at the rate of 1% per month or part of the month on amount of TDS from the date of tax was deductible till the date of tax actually deducted shall be charged for late deduction.

Also, for late payment Interest at the rate of 1.5 % per month or part of the month on amount of TDS from the date of tax was deducted till the date such tax is paid shall be charged.

Interest on late payment of TDS: Changes made as per Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020 dated 24th March 2020:

For delayed payments of advanced tax, self-assessment tax, regular tax, TDS, TCS, equalization levy, STT, CTT made between 20th March 2020 and 30th June 2020, reduced interest rate at 9% instead of 12 %/18 % per annum (i.e. 0.75% per month instead of 1/1.5 percent per month) will be charged for this period. No late fee/penalty shall be charged for delay relating to this period.

Fees for default in filing of TDS/ TCS return:

Fees is payable at Rs. 200 per day for each day during which the failure continues. The amount of fees cannot exceed than the amount of TDS

Download Latest TDS rates chart for Financial Year 2020-21 and Assessment Year 2021-22 from below button

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