Relaxation in TDS Rates in FY 2020-21 in Covid-19 Tax Reform Package

Relaxation in TDS Rates in FY 2020-21 in Covid-19 Tax Reform Package

In my earlier post on TDS Compliances,  I have shared what TDS was all about. When it is required to deduct? What are its due dates?

Now, in this post I would like to share the Section wise TDS rates and the threshold limit thereon for TDS deduction in FY 2020-21.

In order to meet out economic situation arising out of Covid-19 pandemic, the TDS rates for certain non-salaried payments made to residents is reduced by 25% for the period from 14th May, 2020 to 31st March, 2021.

 

TDS CHART FOR FY 2020-21

 

Section

Nature of payment

Threshold Limit

Applicable

from 01/04/2020

to 13/05/2020

Applicable

from 14/05/2020 to 31/03/2021

Resident

Non-resident *

Resident

Non-resident *

Rs. 

TDS Rate (%)

TDS Rate (%)

TDS Rate (%)

TDS Rate (%)

192

Salaries

-

Normal slab rate

Normal slab rate

Normal slab rate

Normal slab rate

192A

Premature withdrawal from EPF

50000

10

10

10

10

193

Interest on securities - 8% Savings (Taxable) Bonds, 2003 or 7.75% Savings (Taxable) Bonds, 2018 during the financial year

10000

10

-

7.5

-

193

Interest on securities - Interest on securities for money issued by or on behalf of any local authority/statutory corporation, listed debentures of a company(other than demat form), any other interest on securities

5000

10

-

7.5

-

194

Dividends

5000

10

-

7.5

-

194A

Interest (Banking co., co-operative society engaged in banking, post office)

40000

10

-

7.5

-

194A

Interest (Any other person)

5000

10

-

7.5

-

194B

Winning from lotteries

10000

30

30

30

30

194BB

Winning from Horse race

10000

30

30

30

30

194C

Contractor-Single

30000

 

 

 

 

transaction-Individual/HUF

1

-

0.75

-

           -Others

2

-

1.5

-

194C

Contractor – Consolidated Payment During the F.Y.

100000

 

 

 

 

- Individual/HUF

1

-

0.75

-

- Others

2

-

1.5

-

194D

Insurance commission

15000

5

-

3.75

-

194DA

Maturity of Life insurance policy

100000

5

-

3.75

-

194E

Non-resident sportsmen or sports association

-

-

20

-

20

194EE

NSS

2500

10

10

7.5

10

194F

Repurchase units by MFs

-

20

20

15

20

194G

Commission-Lottery

15000

5

5

3.75

5

194H

Commission/Brokerage

15000

5

-

3.75

-

194I

Rent of - Plant/Machinery /Equipment

240000

2

-

1.5

-

- Land and Building/Furniture & Fixture

10

-

7.5

-

194IA

Transfer of immovable property not being agriculture land

50 lakh

1

-

0.75

-

194IB

Rent by Individual/HUF

50000 per month

5

-

3.75

-

194IC

Payment under Joint Development Agreements to Individual/HUF

-

10

-

7.5

-

194J

Professional Fees

30000

10

-

7.5

-

194J

Technical Fees (w.e.f. 01.04.2020)

30000

2

-

1.5

-

194J

Payment to call centre operator (w.e.f. 01.06.2017)

30000

2

-

1.5

-

194J

Director's fees

-

10

-

7.5

-

194K

Payment of any income in respect of

5000

10

-

7.5

-

(a) units of a mutual fund as per section 10(23D); or

(b) the units from the administrator; or

(c) units from specified company

(w.e.f. 01.04.2020)

194LA

Compensation on transfer of immovable property not being  agriculture land

250000

10

-

7.5

-

194LB

Income from interest on infrastructure debt fund

-

-

5

-

5

194LBA

Income from units of business trust

-

 

 

 

 

- interest received/receivable from a special purpose vehicle (SPV); or

10

5

7.5

5

- dividend as referred in  section 115-O (7)

10

10

7.5

10

194LBA

Distribution of rental income to unit holders

-

 

 

 

 

- Other than Comapany

10

30

7.5

30

- Company

10

40

7.5

40

194LBB

Income in respect of units of investment fund

-

 

 

 

 

- Other than Company

10

30

7.5

30

- Company

10

40

7.5

40

194LBC

Income in respect of investment in securitization fund

-

 

 

 

 

- Individual/HUF

25

30

18.75

30

- Company

30

40

22.5

40

- Other Person

 

30

30

22.5

30

194LC

Income from interest by an Indian specified company to a non-resident/foreign company on foreign currency approved loan / long-term infrastructure bonds from outside India

-

-

5

-

5

194LC

Income by way of interest by an Indian specified company on rupee denominated bond / any long-term bonds from outside India, which is listed only on a recognized stock exchange located in any International Financial Services Centre

-

-

4

-

4

194LD

Interest on certain bonds from Govt. securities

-

-

5

-

5

194M

Certain payments by Individual/HUF

50 lakh

5

-

3.75

-

194N

Payment of certain amount in cash

1 Crore

2

2

2

2

194N

Payment of certain amount in cash (first proviso of section 194N)if-

 

 

 

 

 

 

-  Amount is more than Rs.20 lakh but up to Rs. 1 crore

 

N.A.

N.A.

2

2

 

-  Amount exceeds Rs. 1 crore (Applicable from 01.07.2020)

 

N.A.

N.A.

5

5

194-O

Applicable for e-commerce operator

1

-

0.75

-

195

Income of Investment made by an NRI

-

-

20

-

20

195

Long-term capital gain

-

 

 

 

 

- Under Section - 115E/

 

 

 

 

112(1)(c)(iii)/112A

-

10

-

10

- Any Other Gains

-

20

-

20

195

Short-term capital gain - 111A

-

-

15

-

15

195

Royalty

-

-

10

-

10

195

Fees for technical services

-

-

10

-

10

195

Interest income payable by Govt./Indian concern (other than section 194LB or 194LC)

-

-

20

-

20

195

Any Other Income - Other than Company

-

-

30

-

30

                 - Company

-

40

-

40

 

 

 

 

 

196A

Income in respect –

-

-

20

-

20

- of units of a Mutual Fund specified under section 10 (23D); or

- from the specified company referred to in the Explanation to clause (35) of section 10

196B

Income from units to an offshore fund

-

-

10

-

10

196C

Income from foreign currency bonds or Global Deposits Receipts (GDR) of an Indian company

-

-

10

-

10

196D

Income of foreign Institutional Investors from securities (other than dividend or capital gain)

-

-

20

-

20