This article covers- Latest TDS Rate Chart for FY 2020-21 & AY 2021-22, New Turnover limit for the purpose of TDS applicability as per Finance Act 2020 and TDS Due dates.
New TDS section and Amendment introduced in Finance Act 2020:
| Nature of payment | Basic cut off (Rs.) (Old) | Basic cut off (Rs.) (New) | Rate % (old) | Rate % (New) | If NO Pan or Invalid Pan (Rate %) |
| 194J – Professional Fees for technical services (w.e.f. from 1.4.2020) | 30000 | 30000 | 10 | 2 | 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 | – | – | – | 10 | 20 |
| 194N – Cash withdrawal in excess of Rs. 20 lakhs during the previous year from one or more accounts maintained by a person with a banking company, co-operative society engaged in the business of banking or a post office. | 20 Lakhs | 20 Lakhs | – | 2 | 20 |
| 194N – Cash withdrawal in excess of Rs. 1 crore during the previous year | 1 Crore | – | – | 2 | 20 |
| 194O- Applicable for E-Commerce operator | – | – | – | 1 | 20 |
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New Turnover limit for the purpose of TDS applicability as per Finance Act 2020:
TDS was applicable to individual and HUF if there 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 amendment shall take effect from 1st April 2020.
Rates of TDS applicable for Financial Year 2020-21 Assessment Year 2021-22 (After COVID-19)
As you all know TDS rate has been revised with effect from 14th May 2020. Finance Minister Nirmala Sitharaman has announced a slew of direct tax measures as part of the Covid-19 relief package on 13th May 2020.
Wef 14-May-2020, There is a reduction in the TDS and TCS rates by 25%. We have enumerated the revised TDS rate chart for FY 2020-21 effective from 14th May 2020 in a separate article. Read Revised TDS Rate Chart for FY 2020-21 by clicking here.
Revised TDS Rate Chart for FY 2020-21: Effective from 14th May 2020
Rates of TDS applicable for Financial Year 2020-21 Assessment Year 2021-22 (Before Covid-19)
| Nature of Payment | Basic Cut off (Rs.) | Individuals and HUF (Rate %) | Company / Firm / LLP / Co-op Society / Local Authority (Rate %) | If No Pan or Invalid PAN (Rate %) |
| 192 – TDS on salary payment | As per Slab Rate | As per Slab Rates | As per Slab Rates | 30 |
| 192A- Premature withdrawal from Employee Provident Fund | 50000 | NA | 10 | 20 |
| 193 – TDS on Interest on securities | – | 10 | 10 | 20 |
| 194 – Dividend other than the dividend as referred to in Section 115-O | 2500 | 10 | 10 | 20 |
| 194A – Interest other than interest on securities – Others | 40000 (for individual) | 10 | 10 | 20 |
| 194A – Banks (Time deposits) | 40000 (for individual) 50000 (for Senior Citizens only) | 10 | 10 | 20 |
| 194A – Banks (Recurring deposit) | 40000 (for individual) 50000(for Senior Citizens only) | 10 | 10 | 20 |
| 194A – Deposit in Co-op Banks | 40000 (for individual) 50000(for Senior Citizens only) | 10 | 10 | 20 |
| 194B – TDS on lotteries Winnings | 10000 | 30 | 30 | 30 |
| 194BB – TDS on horse race Winnings | 10000 | 30 | 30 | 30 |
| 194C- TDS on payment made to Contractor – Single Transaction | 30000 | 1 | 2 | 20 |
| 194C-TDS on Payment made to Contractor – Aggregate | 100000 | 1 | 2 | 20 |
| 194C- Contract – Transporter not covered under 44AE | 30000 / 75000 | 1 | 2 | 20 |
| 194C- TDS on payment made to Transporter in case of transporter submit a declaration | – | – | – | 20 |
| 194D – Insurance Commission | 15000 | 5 | 5 | 20 |
| 194DA Payment in respect of life insurance policy | 100000 | 1 | 1 | 20 |
| 194E – TDS on Payment made to NR sport association or Sportsmen | – | 20 | 20 | 20 |
| 194EE – Payments out of deposits under National Savings Scheme | 2500 | 10 | 10 | 20 |
| 194F – TDS in case Mutual Fund Repurchase Units | – | 20 | 20 | 20 |
| 194G – TDS on lottery Commission | 15000 | 5 | 5 | 20 |
| 194H – Commission / Brokerage | 15000 | 5 | 5 | 20 |
| 194I – Rent – Land and Building – furniture – fittings | 240000 | 10 | 10 | 20 |
| 194I – Rent – Plant / Machinery / equipment | 240,000 | 2 | 2 | 20 |
| 194IA -Transfer of certain immovable property other than agriculture land | 50,00,000 | 1 | 1 | 20 |
| 194IB – Rent – Land or building or both | 50000 per month | 5 | – | 20 |
| 194IC – Payment of Monetary consideration under Joint development agreement | – | 10 | 10 | 20 |
| 194J – Professional Fees for technical services (w.e.f. from 1.4.2020) | 30000 | 2 | 2 | 20 |
| 194J – Professional Fees in all other cases | 30000 | 10 | 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 | – | 10 | 10 | 20 |
| 194LA – TDS on compensation for compulsory acquisition of immovable Property | 250000 | 10 | 10 | 20 |
| 194 LBA (1)-TDS deduction by Business trust | 10 | 10 | 0 | |
| 194LB – Interest Income from Non-Resident infrastructure debt fund | – | 5 | 5 | 20 |
| 194LBB – Income in respect of investment in Securitisation trust. | – | 10 | 30 | 40 |
| 194LBC- Income in respect of investment made in a securitisation trust | – | 25 | 30 | 40 |
| 194 LC – Interest Income by an Indian specified company to a non-resident / foreign company | – | 5 | 5 | 20 |
| 194LD – Interest on certain bonds and govt. Securities | – | 5 | 5 | 20 |
| 194M – Payment of Commission, professional fee by an Individual/HUF who are not liable to Audit under this act. | 50,00,000 | 5 | 5 | |
| 194N – Cash withdrawal in excess of Rs. 1 crore | 20,00,000 | 2 | 2 | |
| 194N – Cash withdrawal in excess of Rs. 1 crore | 100,00,000 | 2 | 2 | |
| 194O- TDS by E-Commerce operator | – | 1 | 1 | |
| 195- Payment of any sum to Non resident | – | – | – | Higher of Rate in force or Double Taxation Avoidance Act rate |
| 196B – Income from units | – | 10 | 10 | 20 |
| 196C- Foreign currency bonds or GDR Income | – | 10 | 10 | 20 |
| 196D – TDS on Income from securities for Foreign Institutional Investor | – | 20 | 20 | 20 |
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