All you want to know about TDS Rate chart for Financial Year 2021-22

All you want to know about TDS Rate chart for Financial Year 2021-22

TDS Rate chart for Financial Year 2021-22 - taxscan

The concept of TDS was introduced with an aim to collect tax from the very source of income. As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government.

In Budget 2021 there has been no changes made in the TDS rates for FY 2020-21 hence the old rates without giving effect of Covid reduction of 25% shall be applicable for Financial Year 2021-22.

  1. Section 192: Payment of Salaries

Where the person is a resident of India or not the Indian Resident, the Normal Slab Rate (or) New Tax Regime Slab Rate as opted by employee will be applicable.

  • Section 192A: Payment of accumulated balance of provident fund which is taxable in the hands of an employee

The Payment of accumulated balance of provident fund which is taxable in the hands of an employee where the Threshold Limit Rs.50,000 then 10% of TDS will be applicable on Indian resident and 10.40% on Non-Indian resident.

  • Section 193: Interest on Securities

The Threshold Limit is Rs.2,500 then 10% TDS will be applicable on any debentures or securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act, any debentures issued by a company where such debentures are listed on a recognised stock exchange, any security of the government and interest on any other security respectively in case of resident person and domestic company.

  • Section 194: Dividend

The Dividend Threshold Limit Rs. 5,000, TDS on dividend shall not apply to dividend income credited or paid to a business trust by a special purpose vehicle(SPV) 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.

It is noteworthy that the 10% of TDS will be applicable on the domestic company.

  • Section 194A: Interest Income on bank deposits, post office deposit,banking co-operative society deposit (other than “Interest on securities”)

The Threshold Limit for Senior Citizens Rs.50,000 Other than senior citizens, Rs.40,000 Interest other than “Interest on securities” (Other Than Bank Deposit/Post Office Deposit/Banking Co-Society Deposit) Threshold Limit Rs.5,000.

The 10% TDS will be applicable on Indian Resident and domestic companies.

  • Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort

When the Threshold Limit is Rs.10,000 of the Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort then TDS of 30%, 31.20%, 30% and 31.20% will be applicable on resident Indians, Non-Resident Indians, Domestic Companies and foreign company respectively.

  • Section 194BB: Income by way of winnings from horse races

The Threshold Limit of Rs.10,000 on the Income by way of winnings from horse races  then TDS of 30%, 31.20%, 30% and 31.20% will be applicable on resident Indians, Non-Resident Indians, Domestic Companies and foreign company respectively.

  • Section 194C: Payment to contractor/sub-contractor by HUF/Individuals, Others

The Single Transaction to be taken as Rs. 30,000 & Aggregate of Transactions as Rs. 1,00,000 1% TDS is applicable on HUF/Individuals and 2% TDS is applicable on Others in case of a Indian Resident and Domestic company.

  • Section 194D: Insurance commission

The Threshold Limit for Individuals and Companies both is Rs.15,000 then 5% and 10% of TDS is applicable on Indian Resident and Domestic company.

  • Section 194E: Payment to non-resident sportsmen/sports association

In case of the payment to non-resident sportsmen/sports association then 20.80% TDS will be applicable on Non-Indian Resident and foreign company

  • Section 194EE: Payment in respect of deposit under National Savings scheme

The Threshold Limit is Rs.2,500 for the Payment in respect of deposit under National Savings scheme 10%, 10.40%, and 10% of TDS will be applicable on  resident Indians, Non-Resident Indians and Domestic Companies respectively.

  • Section 194F: Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India

The TDS at the rate of 20%, 20.80% and 20% will be applicable on the payment on account of repurchase of unit by Mutual Fund or Unit Trust of India in the case of resident Indians, Non-Resident Indians and Domestic Companies respectively.

  • Section 194G: Commission, etc., on sale of lottery tickets

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.

  • Section 194H: Commission or brokerage

The Threshold Limit is Rs.15,000 for the Commission or brokerage 5% TDS will be applicable on resident Indians and Domestic Companies respectively.

  • Section 194-I: Rent on Plant & Machinery Land, Building, Furniture and Fittings

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.

  • Section 194-IA: Payment on transfer of certain immovable property other than agricultural land

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.

  • Section 194-IB: Payment of rent by individual or HUF not liable to tax audit

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.

  • Section 194J: Any sum paid by various ways

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.

  • Section 194K: Payment of any income

The TDS at the rate of 10% will be applicable on the resident Indians and Domestic Companies respectively in case of the Payment of any income in respect of Units of a Mutual Fund as per Section 10(23D), Units from the administrator and Units from specified companies.

  • Section 194LA: Payment of compensation on acquisition of certain immovable property

The  Threshold Limit is Rs.2,50,000 on the Payment of compensation on acquisition of certain immovable property, the 10% TDS will be applicable on the resident Indians and Domestic Companies respectively.

  • Section 194LB: Payment of interest on infrastructure debt fund

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.

  • Section 194LBA(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

The TDS at the rate of 10% will be applicable on  resident Indians and Domestic Companies respectively in case of  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.

  • Section 194LBA(2): Business trust shall deduct tax while distributing any interest income received or receivable by it from a SPV to its unit holders

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

  • Section 194LBA(3): Business trust shall deduct tax while distributing any income received from renting or leasing or letting out any real estate asset owned directly by it to its unit holders

The TDS at the rate of 31.20% and 41.60%is applicable on Non-resident Indians and foreign company respectively.

  • Section 194LBB: Investment fund paying an income to a unit holder

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.

  • Section 194LBC: Income in respect of investment made in a securitisation trust In case of Individual/HUF and Others

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.

  • Section 194M: Payment of commission, brokerage, contractual fee, professional fee to a resident person

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.

  • Section 194N: cash withdrawals exceeding 1 crore

The Filed the returns of income for all of the three assessment years relevant to the three previous years and cash withdrawals exceeding 1 crore

Not Filed the returns of income for all of the three assessment years relevant to the three previous years. This provision is applicable w.e.f. 01 July, 2020

Cash withdrawals from 20 Lakhs to 1 crore and Cash withdrawals exceeding 1 crore.

The Domestice company and Indian resident is liable to pay 2% till 30 June, 2020 and 5% from 1 July, 2020

  • Section 194O: E-Commerce

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.

  • Section 194Q : Purchase of goods

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.

The TDS at the rate of 0.10% will be applicable on resident Indians and Domestic Companies respectively.

  • Section 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.

The TDS at the rate of 31.20% is applicable onAny other source of income

  • Section 206AB: TDS on non-filers of ITR

The TDS on non-filers of ITR at higher rates This section shall not apply where the tax is required to be deducted under sections 192, 192A, 194B, 194BB, 194LBC or 194N of the Act. The Resident Indian are liable to pay twice the rate specified in the relevant provision of the Act; or twice the rate or rates in force; or the rate of 5%.

It is noteworthy, after considering cess at the rate of 4% and shall be increased by applicable surcharge.

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