TDS RATE CHART FOR FINANCIAL YEAR -2021-22 AND ASSESSMENT YEAR 2022-23

Section

Nature of Payment

Threshold Limit for deduction tax

Rate of TDS applicable for the period or Basic Cut off (Individual /Company and others New Rate %)

Summary

Individual

Company

Other

If No Pan or Invalid PAN (Rate)
192 Salary As per Slab [Please note that no Change in Slab Rates have been introduced for FY 2021-22] Slab Rates Slab Rates - 30 Option to choose between new and old tax slab regime for salaried employees
192-A Premature withdrawal from Employee Provident Fund (Payment of accumulated balance of provident fund which is taxable in the hands of an employee) Rs 50000.00 10 NA NA 20

TDS provisions u/s 192A will be applicable when withdrawal of accumulated balance in Recognized Providend Fund is to be included in the total income.

10% in case of Resident and 10.40% in case of Non- Resident.
193 Interest on securities Rs 2500.00 10 10 - 20 Threshold limit for interest paid on debentures is Rs. 5,000. Threshold limit for interest on 7.75% GOI Savings (Taxable) Bonds 2018 is Rs. 10,000.
194 Dividend other than the dividend as referred to in Section 115-O Rs. 5000.00 10 10 - 20

This amendment proposes to amend second proviso to section 194 of the Act to further provide that the provisions of section 194 i.e. TDS on dividend shall also not apply to dividend income credited or paid to a business trust by a special purpose vehicle or payment of dividend to any other person as may be notified.

This means that no TDS needs to be deducted to AIF Category III also.
194-A Interest other than interest on securities – Banks Time deposits, Recurring deposit and Deposit in Co-op Banks
  • Senior Citizen Rs. 50000.00
  • Others Rs. 40000.00
 10 - - 20
194-B Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort Rs. 10000.00 30 30 30
  • 30% in case of Resident Indians and Domestic Companies
  • 31.2% in case of Non Resident and Foreign Companies
194-BB Income by way of winnings from horse races Rs. 10000.00 30 30 30
  • 30% in case of Resident Indians and Domestic Companies
  • 31.2% in case of Non Resident and Foreign Companies
194-C Payment to Contractors
  • Single payment : Rs. 30,000
  • Aggregate payment: Rs. 100000
 1 2 20
194-C Contract – Transporter not covered under 44AE
  • Single payment : Rs. 30,000
  • Aggregate payment: Rs. 75000
 1 2 20 TDS is to be deducted at the rate of 2.0% if the payee is an AOP or BOI. TDS is not applicable on payment to Contractor engaged in plying, hiring or leasing of goods carriages, where such contractor owns 10 or less goods carriages during the Financial Year and furnishes amend definition of “work” to include purchase of raw material from associate of the customer. The word Associate shall have the same relations as stated u/s 40A(2)(b).
194-D Insurance commission Rs 15000.00 5 10 - 20
  • 10%: If deductee is domestic Company
  • 5%: In any other case
194-DA Payment in respect of life insurance policy, the tax shall be deducted on the amount of income comprised in insurance pay-out Rs. 100000 5 5 - 20 Section 194DA is not applicable in case of amount is exempt u/s 10(10D) i.e. the Sum is received at the time of maturity of policy or Death benefit received. Form 15G/15H can be given wherever applicable.
194-E Payment to non-resident sportsmen/ sports association 20 20 - 20 The rate of TDS shall be increased by applicable surcharge and Health & Education cess.
194-EE Payment in respect of deposit under National Savings scheme Rs 2500.00 10 10 - 20
  • Resident Indians & Domestic Companies –10%
  • Non Resident – 10% + Cess + Surcharge (If Applicable)
194-EE Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India 20 20 - 20 Resident Indians & Domestic Companies – 20% Non Resident – 20% + Cess + Surcharge (If Applicable)
194-G Commission on sale of lottery tickets Rs 15000.00 5 5 - 20 Threshold Limit of Rs.15,000 on Commission, etc., on sale of lottery tickets, the 5%, 5.20%, 5% and 5.20% will be applicable on resident Indians, Non- Resident Indians, Domestic Companies, and Foreign Companies respectively.
194-H Commission or brokerage Rs 15000.00 5 5 - 20 The Threshold Limit is Rs.15,000 for the Commission or brokerage 5% TDS will be applicable on resident Indians and Domestic Companies respectively.
194-I RENT
  • The Threshold Limit of Rs.2,40,000 for Rent on Plant & Machinery and Land Building, Furniture and Fittings.
  • The 2% TDS in case of Rent on Plant & Machinery for resident Indians and Domestic Companies respectively.
  • The 10% TDS in case of Rent on Land Building, Furniture and Fittings for resident Indians and Domestic Companies respectively.
194-I(a) Plant & Machinery Rs. 240000.00 2 2 - 20
194-I(b) Land or building or furniture or fitting Rs. 240000.00 10 10 - 20
194-IA Transfer of certain immovable property other than agriculture land Rs 50,00,000.00 1 1 - 20 The Threshold Limit is Rs.50,00,000 for the payment on transfer of certain immovable property other than agricultural land 1% applicable on resident Indians and Domestic Companies respectively.
194-IB Payment of Rent by Individuals or HUF not liable for Tax Audit Rs. 50,000 per month 5 - - 20 The Threshold Limit is Rs.50,000 per month for the Payment of rent by an individual or HUF not liable to tax audit and 5% TDS is applicable on resident Indians.
194-IC Payment of monetary consideration under Joint Development Agreements - 10 10 - 20
194-J Fees for professional or technical services:

Fees for professional or technical services.

If recipient is engaged in business of operation of call Centre

If sum is payable towards fees for technical services (other than professional services)

Rate: Rs 30000

 2 2 - 20

The Threshold Limit of Rs.30,000 on Any sum paid by way of: Cases,

  • Wherein, the payee is engaged in the business of the operation of Call Centre only, 2% TDS is applicable on resident Indians and Domestic Companies respectively.
  • Fee for technical services, 2% TDS is applicable on resident Indians and Domestic Companies respectively.
  • Professional royalty where such royalty is in the nature of consideration for sale, distribution or exhibition of cinematographic film 10% TDS is applicable on resident Indians and Domestic Companies respectively.
  • In case of fees for any other professional services 10% TDS is applicable on resident Indians and Domestic Companies respectively.
  • In case the payee fails to furnish PAN 20% TDS is applicable on resident Indians and Domestic Companies respectively.
In all other cases

Rate: Rs 30000

 10 10 - 20
194-K 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 - 10 10 - 20 Units of Mutual Fund have been specified under section 10(23D) of Income Tax Act, 1961. “Administrator”, “specified company” and “specified undertaking” are specified u/s 2 of the Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002.
194-LA TDS on compensation for compulsory acquisition of immovable Property Rs. 2,50,000.00 10 10 - 20 No tax will be deducted if payment is made in respect of any award or agreement which has been exempted from levy of income-tax u/s 96 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.
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 Rs. 2,50,000.00 10 10 - 20 Interest payment from a SPV and Distribution of dividend by a Business Trust, to Resident unit holders shall be liable for TDS @ 10%. Whereas, in case of Non-Resident payee, TDS on dividend shall be @ 10% & that on interest payment shall be @ 5%.
194- LBA(2) Distribution of, any interest received or receivable from SPV by Business trust. - The TDS at the rate of 5.20% is applicable on Non- resident Indians and foreign company in the case of business trust shall deduct tax while distributing any interest income received or receivable by it from a SPV to its unit holders.
194- LBA(3) Distribution of, any income received from renting or leasing or letting out any real estate asset owned directly by Business trust. - The TDS at the rate of 31.20% and 41.60%is applicable on Non-resident Indians and foreign company respectively.
194-LB Payment of interest on infrastructure debt fund to Non Resident. - 5 5 - 20 The TDS at the rate of 5.20% is applicable on Non- resident Indians and foreign company in the case of Payment of interest on infrastructure debt fund..
194-LBB Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)] - 10 10 - 30 The TDS at the rate of 10%, 31.20%, 10%, and 41.60% will be applicable on resident Indians, Non-Resident Indians, Domestic Companies and foreign companies respectively.
194-LBC Income in respect of investment made in a securitization trust (specified in Explanation of section115TCA) - 25 10 - 30 The TDS at the rate of 25% , 31.20%, 10%, and 41.60% will be applicable on resident Indians, Non- Resident Indians, Domestic Companies and foreign companies respectively.
194-M 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. Rs.50,00,000.00 5 5 - 20 The threshold Limit of Rs.50,00,000 payment of commission, brokerage, contractual fee, professional fee to a resident person by an Individual or a HUF who are not liable to deduct 5% TDS by the resident Indians and Domestic Companies respectively.
194-N Cash withdrawal 20

If a person defaults in filing of return: 20 lakhs:

2%: In general if cash withdrawn exceeds Rs. 1 crore

If no default is made in filing of return: Rs 1 crore:

2%: If assessee has not furnished return for last 3 assessment years and cash withdrawn exceeds Rs. 20 lakhs but does not exceed Rs. 1 crore

Others:

5%: If assessee has not furnished return for last 3 assessment years and cash withdrawn exceeds Rs. 1 crore
194-O Applicable for E-Commerce operator for sale of goods or provision of service facilitated by it through its digital or electronic facility or platform. Rs.5,00,000.00 1 1 - 20 The Threshold Limit is Rs.5,00,000 for the Applicable for E-Commerce operator for sale of goods or provision of service facilitated by it through its digital or electronic facility or platform. The TDS at the rate of 1% will be applicable on resident Indians and Domestic Companies respectively.
194-Q Purchase of goods(applicable w.e.f 01.07.202 Rs 50,00,000.00 0.10 0.10 - -

Budget Update

A new section 194Q is proposed to be inserted to provide for deduction of TDS by person responsible for paying any sum to any resident for purchase of goods @ 0.1%.

The Threshold Limit is Rs.50,00,000 applicable when total sales or gross receipts or turnover from the business carried on exceeds Rs. 10 Crores during the financial year immediately preceding the financial year in which the purchase of goods is carried out.
195 Payment of any other sum to a Non-resident
  • The TDS at the rate of 20.80% is applicable on income from investments made by a NRI.
  • The TDS at the rate of 10.40% is applicable on income from long-term capital gains under Section 115E for a NRI
  • The TDS at the rate of 10.40% is applicable on Income from long-term capital gains
  • The TDS at the rate of 15.60% is applicable on Short-term capital gains under Section 111A
  • The TDS at the rate of 20.80% is applicable on any other income from long-term capital gains
  • The TDS at the rate of 20.80% is applicable on Interest payable on money borrowed in foreign currency
  • The TDS at the rate of 10.40% is applicable on Income from royalty payable by the Government or an Indian concern.
  • The TDS at the rate of 10.40% is applicable on Income from royalty other than that which is payable by the Government or an Indian concern.
  • The TDS at the rate of 10.40% is applicable on Income from fees for technical services payable by the Government or an Indian concern.
TCS RATES FOR FINANCIAL YEAR 2021-22 AND ASSESSMENT YEAR 2022-23
SECTION 206C (1)

TCS Deposit Challan Code

Goods & Services liable to TCS

TCS Rate (%)
6CA Alcoholic liquor for human consumption 1
6CB Timber obtained under Forest lease 2.5
6CC Timber obtained by any mode other than under a forest lease 2.5
6CD Any other forest produce not being timber or tendu leaves 2.5
6CE Scrap 1
6CI Tendu Leaves 5
6CJ Minerals, being coal or lignite or iron ore 1
SECTION 206C (1C)
6CF Parking Lot 2
6CG Toll Plaza 2
6CH Mining & Quarrying 2
SECTION 206C (1F)
6CL

Motor Vehicle (any mode of payment)

(Seller, who receives any amount as consideration for sale of a motor vehicle of the value exceeding 10 lakh Rupees)

 1
SECTION 206C (1G)
6CO

Overseas Tour Program Package

(Every person being a seller of an overseas tour program package, who receives any amount from a buyer, being the person who purchases such package)

5

(TCS in case of Non-Furnishing of PAN/Aadhar 10%)
6CP

Remittance under LRS for education loan taken from financial institution mentioned under section 80E

(Amount or aggregate of the amounts in excess of 7 lakh rupees remitted by the buyer in a financial year, if the amount being remitted out is a loan obtained from any financial institution as defined in section 80E, for the purpose of pursuing any education)

 0.50
6CQ

Remittance under LRS (for purpose other than for purchase of overseas tour package or for education loan taken from financial institution mentioned under section 80E)

(Person, being an authorised dealer, who receives an amount/aggregate of amounts exceeding 7 Lakh, for remittance out of India from a buyer, being a person remitting such amount out of India under the Liberalised Remittance Scheme of the Reserve Bank of India)

5

(TCS in case of Non-Furnishing of PAN/Aadhar 10%)
SECTION 206C (1H)
6CR

Sale of Goods

Every person, being a seller, who receives any amount as consideration for sale of any goods of the value or aggregate of such value exceeding 50 lakh rupees in any previous year, other than the goods being exported out of India or goods covered in sub-section (1) or sub-section (1F) or sub-section (1G)

Budget Update

In case of transaction on which TDS u/s.194Q is applicable w.e.f 01/07/2021, then TCS u/s.206C(1H) not applicable

0.1

(TCS in case of Non-Furnishing of PAN/Aadhar 1%)
SECTION 206CCA

Higher Rate of TCS for Non Filer of ITR

Proposed section 206CCA of the Act would apply on any sum or amount received by a person (herein referred to as collectee) from a specified person. The proposed TCS rate in this section is higher of the following rates –

  • twice the rate specified in the relevant provision of the Act; or
  • the rate of 5%
Thanks
CA Chetna Gupta
(Chartered Accountant)
Chetna Gupta and Associates
(Chartered Accountants) Online
Hi there! 👋
How can I help you?