What is TDS? / TDS Kya hai or Use?
Tax Deducted at Source (TDS) Isse Aayakar Vibhaag (Income tax Department) dvaara pesh kiya gaya hai. Isake tahat, jimmedaar vyakti ko Kharidnewla ya Fir Service Lena wala (Receiver) ko Bill ki Payment karane se Pahle Tax ke roop mein Income ka ek Nishchit Pratishat (Percentage) katautee karana chaheyie. Bhugataan mein Salary, commission, Professional Fees, Interest, Rent aadi shaamil hain.
COVID -19 ke kaaran, Bharatiy Nagrik ko kiye gaye bhugataan par TDS ki Rates 14 May, 2020 se 31 March, 2021 tak ki Avadhi ke liye 25% tak kam kar dee gaye hain. Haalaanki, daron mein koi kamee nahi hogi, Jahaan kar PAN / Aadhaar na prastut karane ke kaaran uchch dar (Rate) par katautee (Deduct) ya Jama kiya jaana aavashyak hai.
Ab Financial year 2020-21 ke liye lagoo TDS / TCS Rates par ek najar daalate hain, 13 May, 2020 ko jaaree Vitt Mantralay (Ministry of Finance) dvaara jaaree Press Release ke Anusaar:
English - Tax Deducted at Source (TDS) is a mechanism that has been introduced by the Income Tax Department. Under this, the responsible person is supposed to deduct a certain percentage of income as tax before making the payment to the receiver. The payment includes salary, commission, professional fees, interest, rent, etc.
Due to Covid-19 situation, the rates of TDS on payments made to resident Indian has been reduced by 25% for the period starting from 14th May, 2020 to 31st March, 2021. However, there shall be no reduction in rates, where tax is required to be deducted or collected at higher rate due to non-furnishing of PAN/Aadhaar.
Now, let’s have a look at the TDS/TCS Rates applicable for financial year 2020-21 as per Press Release issued by Ministry of Finance dated 13th May, 2020:TDS Rate Chart for F.Y. 2020-21 (A.Y: 2021-22)
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
transaction-Individual/HUF
-Others
|
30000
|
1
2
|
-
-
|
0.75
1.5
|
-
-
|
194C
|
Contractor – Consolidated Payment During the F.Y.
- Individual/HUF
- Others
|
100000
|
1
2
|
-
-
|
0.75
1.5
|
-
-
|
194D
|
Insurance commission
- Other than Company
- Company
|
15000
|
5
10
|
-
-
|
3.75
10
|
-
-
|
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
- Land and Building/Furniture & Fixture
|
240000
|
2
10
|
-
-
|
1.5
7.5
|
-
-
|
194IA
|
Transfer of certain immovable property other than 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
(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)
|
5000
|
10
|
-
|
7.5
|
-
|
194LA
|
Compensation on transfer of certain immovable property other than agriculture land
(TDS exempted if covered under RFCTLARR Act w.e.f. 01.04.2017)
|
250000
|
10
|
-
|
7.5
|
-
|
194LB
|
Income by way of interest from infrastructure debt fund
|
-
|
-
|
5
|
-
|
5
|
194LBA
|
Income from units of business trust
- interest received or receivable from a special purpose vehicle; or
- dividend referred to in sub-section (7) of section 115-O
|
-
|
10
10
|
5
10
|
7.5
7.5
|
5
10
|
194LBA
|
Distribution of rental income to unit holders
- Other than Comapany
- Company
|
-
|
10
10
|
30
40
|
7.5
7.5
|
30
40
|
194LBB
|
Income in respect of units of investment fund
- Other than Company
- Company
|
-
|
10
10
|
30
40
|
7.5
7.5
|
30
40
|
194LBC
|
Income in respect of investment in securitization fund
- Individual/HUF
- Company
- Other Person
|
-
|
25
30
30
|
30
40
30
|
18.75
22.5
22.5
|
30
40
30
|
194LC
|
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
|
-
|
-
|
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
- Amount exceeds Rs. 1 crore (Applicable from 01.07.2020)
|
N.A.
N.A.
|
N.A.
N.A.
|
2
5
|
2
5
| |
194-O
|
Applicable for e-commerce operator for the sale of goods or provision of services facilitated by it through its digital or electronic facility or platform (Applicable from 01.10.2020)
|
-
|
N.A
|
-
|
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
- Any Other Gains
|
-
|
-
-
|
10
20
|
-
-
|
10
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
- Company
|
-
|
-
-
|
30
40
|
-
-
|
30
40
|
196A
|
Income in respect –
- of units of a Mutual Fund specified under clause (23D) of section 10; or
- from the specified company referred to in the Explanation to clause (35) of section 10
|
-
|
-
|
20
|
-
|
20
|
196B
|
Income from units to an offshore fund
|
-
|
-
|
10
|
-
|
10
|
196C
|
Income from foreign currency bonds or GDR of an Indian company
|
-
|
-
|
10
|
-
|
10
|
196D
|
Income of foreign Institutional Investors from securities (not being dividend or capital gain)
|
-
|
-
|
20
|
-
|
20
|
नोट : डिडक्टी द्वारा पैन / आधार (PAN / Aadhaar) न जमा करने की स्थिति में, टीडीएस (TDS) सामान्य दर या 20% (धारा 194-ओ (194-o) के मामले में 5%) पर लगाया जाएगा, जो भी अधिक हो
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