Know the Revised TDS rates for FY 2020-21 | AY 2021-22

Revised TDS rates for FY 2020-21- In the month of May 2020, The government has announced a package of Rs. 20 Lakhs crore in which Current TDS rates were revised and cut by 25%. For this, the effective dates are 14 May 2020 and it remains applicable till 31st March 2021. Click Here to Check Press Release dated 13th May 2020.

Note:- TDS rates for the salaried persons shall remain unchanged and old rates shall apply as usual i.e. on the basis of slab rates.

Also Read- Financial Year 2020-21: Extended Income Tax Audit Due Date

Revised TDS rates for FY 2020-21 | AY 2021-22

Here we are showing the chart of revised TDS rates for FY 2020-21

S.No.Section of the Income Tax ActNature of PaymentExisting rates of TDSRevised rates from 14.05.20 to 31.03.21
1193Interest on Securities10%7.5%
2194Dividend10%7.5%
3194AInterest other than interest
on securities
10%7.5%
4194CPayment of Contractors
and sub-contractors
1% (For Ind/HUF) and 2% for Others0.75% (For Ind/HUF) and 1.5% for Others
5194DInsurance Commission5%3.75%
6194DAPayment in respect of life
insurance policy
5%3.75%
7194EEPayments in respect of
deposits under National
Savings Scheme
10%7.5%
8194FPayments on account of
re-purchase of Units by
Mutual Funds or UTI
20%15%
9194GCommission, prize etc.,
on sale of lottery tickets
5%3.75%
10194HCommission or brokerage5%3.75%
11194-I(a)Rent for plant and machinery2%1.5%
12194-I(b)Rent for immovable property10%7.5%
13194-IAPayment for acquisition
of immovable property
1%0.75%
14194-IBPayment of rent by individual or HUF5%3.75%
15194-ICPayment for Joint Development Agreements10%7.5%
16194JFee for Professional or
Technical Services (FTS),
Royalty, etc.
2% (For FTS, certain royalties, call centre and 10% for others)1.5% (For FTS,
certain royalties, call centre and 7.5% for others)
17194KPayment of dividend by
Mutual Funds
10%7.5%
18194LAPayment of Compensation on acquisition of immovable property10%7.5%
19194LBA (1)Payment of income by
Business trust
10%7.5%
20194LBB(i)Payment of income by Investment fund10%7.5%
21194LBC(1)Income by securitisation trust25% (For Individual/H UF and
30% for others)
18.75% (For Individual/HUF and 22.5% for others)
22194MPayment to commission,
brokerage etc. by Individual and HUF
5%3.75%
23194-OTDS on e-commerce participants1% (w.e.f.
1.10.2020)
0.75%

TDS rates for FY 2020-21- The TDS on the amount paid or credited during the period from 14th May 2020 to 31st March 2021 shall be deducted at the revised reduced rate as mentioned in the above table.

Also Read- Financial Year 2020-21: Section 44ADA of the Income Tax Act

Higher Rate of TDS

In case where there is no PAN card available, tax is required to be deducted at Higher rates and the TDS rates are not reduced due to non furnishing of PAN details.

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Disclaimer: The information contained in the above article are solely for informational purpose after exercising due care. However, it does not constitute professional advice or a formal recommendation. The author does not own any responsibility for any loss or damage caused to any person, directly or indirectly, for any action taken on the basis of the above article.

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Compiled by- CA Chirag Agarwal (Practicing Chartered Accountants)

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