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Latest TDS Rate Chart for FY 2020-21 AY 2021-22

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What is the due date of filing TDS Return for Q1 of FY 2020-21 is 31 July 2020 or 31 March 2021?

What is the due date of filing TDS Return for Q1 of FY 2020-21 is 31 July 2020 or 31 March 2021?

What is TDS?

TDS or Tax Deducted at Source is income tax reduced from the money paid at the time of making specified payments such as rent, commission, professional fees, salary, interest etc. by the persons making such payments.

Any person making specified payments mentioned under the Income Tax Act are required to deduct TDS at the time of making such specified payments.

What is the due date for depositing the TDS to the government?

The Tax Deducted at Source must be deposited to the government by 7th of the subsequent month. For instance, TDS deducted in the month of June must be paid to the government by 7th July. However, the TDS deducted in the month of March can be deposited till 30th April.

What is the due date of filing TDS returns?

Filing TDS returns is mandatory for all the persons who have deducted TDS. TDS return is to be submitted quarterly. Different forms are prescribed for filing returns depending upon the purpose of the deduction of TDS. Various types of return forms are as follows:

  1. Form 26Q – TDS on all payments except salaries
  2. Q1 – 31st July
  3. Q2 – 31st October
  4. Q3 – 31st January
  5. Q4 – 31st May
  6. Form 24Q – TDS on Salary
  7. Q1 – 31st July
  8. Q2 – 31st October
  9. Q3 – 31st January
  10. Q4 – 31st May
  11. Form 27Q – TDS on all payments made to non-residents except salaries
  12. Q1 – 31st July
  13. Q2 – 31st October
  14. Q3 – 31st January
  15. Q4 – 31st May

Compliances amidst the COVID 19 Pandemic

The COVID 19 pandemic has been largely disruptive to the growth of India. With an ever increasing corona virus cases, lockdown was considered as an only solution to flatten the curve. However the measures which were implemented to avoid a human disaster, have in turn led to the birth of several issues such as unemployment, recession, hindrance to economic growth, financial instability and so on.

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Due to the emerging financial distress faced by most people on account of the large-scale economic distress caused by COVID 19, the Government of India had extended the due dates of various provisions to provide relief in the current pandemic situation. The Union Finance & Corporate Affairs Minister Smt. Niramla Sitharaman announced several important relief measures taken by the Government of India in view of COVID-19 outbreak, especially on statutory and regulatory compliance matters related to several areas of Income Tax, GST, Customs & Central Excise and Corporate Affairs. Therefore, for the FY 2019-20 & FY 2020-21, a lot of dates were extended.

Provisions of Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020

In the month of March 2020, the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 was put into effect by the President of India. Considering the situation arising out of COVID-19 pandemic, the Ordinance had provided for the extension of various time-limits under the Taxation and Benami Acts.

Section 3(1) of the Ordinance provided that all due dates falling between 20th March, 2020 to 29th June, 2020 shall stand extended to 30th June, 2020.

The provision empowers the Central Government to specify the new cut-off date and to extend the due date.

Ministry of Finance (CBDT) issued Notification 35/2020 on 24.06.2020 extending the time limit for filing ITRs, TDS/TCS returns, making investments etc. for AY 2020-21 & 2019-20

In exercise of the powers conferred by section 3(1) of the Taxation and Other Laws (Relaxation of Certain Provisions) Ordinance, 2020 the Central Government specified that, for the purpose of the said sub-section (1):-

  • the 31st day of December, 2020 shall be the end date of the period during which the time limit specified in, or prescribed or notified under, the specified Act falls for the completion or compliance of such action as specified under the said sub-section; and
  • the 31st day of March, 2021 shall be the end date to which the time limit for completion or compliance of such action shall stand extended

Thus, the due dates of all compliances falling between 20th March, 2020 and 31st December, 2020 shall now be extended to 31st March, 2021.

However, the notification, provides exceptions by specifically providing the due-date for certain compliances, interalia, filing of ITR for the assessment year 2020-21, furnishing of TDS/TCS statement of 4th quarter of the financial year 2019-20, etc. Provided below are the latest deadlines pertaining to filing of returns as per the Notification:-

  1. The time for filing of original as well as revised income-tax returns for the FY 2018-19 (AY 2019-20) has been extended to 31st July, 2020.
  2. Due date for income tax return for the FY 2019-20 (AY 2020-21) has been extended to 30th November, 2020.
  3. Interest at the reduced rate of 9% (i.e. 0.75% per month instead of 1% per month) will be charged on delay in respect of payments made between 20.03.2020 and 30.06.2020.
  4. The reduced rate of interest of 9% for delayed payments of taxes, levies etc. shall not be applicable for the payments made after 30th June, 2020.
  5. The date for furnishing of TDS/ TCS statements pertaining to the FY 2019-20 has been extended to 31st July, 2020.

Effects of the Ordinance and Notification 35/2020 on due date of filing TDS Returns

As per the normal provisions, the due date to furnish the quarterly TDS statement for the first quarter ended on 30th June 2020 for the FY 2020-21 is 31st July 2021.

Ordinance, 2020 extended the due dates of all compliances falling in between 20th March, 2020 and 29th June, 2020 to 30th June, 2020. The question of first quarter of FY 2020-21 was not at all covered by the ordinance.

Due to notification 35/2020 dated 24.06.2020, compliance between 20th March, 2020 and 31st December, 2020 got an extension till 31st March, 2021. However, a specific exclusion was provided in certain cases as a result of which the extended date of 31.03.2021 will not be applicable for those cases. One of which was that TDS quarterly statements in Form No. 24Q, Form No. 26Q , Form No. 27Q and TCS statements in Form 27EQ for FY 2019-20 was fixed at  31st July, 2020.

There was no specific exclusion that was provided in above amendment in respect of TDS quarterly return in respect of first and second quarter of FY 2020-21. As no specific exclusions is provided for TDS return of first and second quarterly TDS return of FY 2020-21,the due date for furnishing the TDS statements will be 31st March, 2021.

Therefore in our opinion the due date for TDS returns as per the Ordinance and Notification will be as follows:-

  • Form 24Q, 26Q, 27Q and 27EQ of Qtr. 4 of the Financial Year 2019-20 – 31st July, 2020
  • Form 24Q, 26Q, 27Q and 27EQ of Qtr. 1 and Qtr. 2 of the Financial Year 2020-21 – 31st March, 2021

An abnormal situation would be arising as a result of above. The due date of quarterly return of third quarter would be 31st January, 2021 whereas the due date of first and second quarter would be 31st March, 2021. It does sound absurd; however any clarification on the same by the Income Tax Department will be welcome.

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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.
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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 securities–Individual: 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 PAN–––20%
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 Association–Individual: 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 MFs–Individual: 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 agreement–Individual: 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 company–Individual: 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 trust–Individual: 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 India–Individual: 5% Company: 5%
(No Change)		Individual: 5% Company: 5%20%
194LD – Interest on certain bonds and govt. Securities–Individual: 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 resident–––Higher of Rate in force or Double Taxation Avoidance Act rate
196B – Income from units–Individual: 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 securities–Individual: 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

TDS-rates-chart-for-Financial-Year-2020-21-and-Assessment-Year-2021-22Download
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