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 Act | Nature of Payment | Existing rates of TDS | Revised rates from 14.05.20 to 31.03.21 |
|---|---|---|---|---|
| 1 | 193 | Interest on Securities | 10% | 7.5% |
| 2 | 194 | Dividend | 10% | 7.5% |
| 3 | 194A | Interest other than interest on securities | 10% | 7.5% |
| 4 | 194C | Payment of Contractors and sub-contractors | 1% (For Ind/HUF) and 2% for Others | 0.75% (For Ind/HUF) and 1.5% for Others |
| 5 | 194D | Insurance Commission | 5% | 3.75% |
| 6 | 194DA | Payment in respect of life insurance policy | 5% | 3.75% |
| 7 | 194EE | Payments in respect of deposits under National Savings Scheme | 10% | 7.5% |
| 8 | 194F | Payments on account of re-purchase of Units by Mutual Funds or UTI | 20% | 15% |
| 9 | 194G | Commission, prize etc., on sale of lottery tickets | 5% | 3.75% |
| 10 | 194H | Commission or brokerage | 5% | 3.75% |
| 11 | 194-I(a) | Rent for plant and machinery | 2% | 1.5% |
| 12 | 194-I(b) | Rent for immovable property | 10% | 7.5% |
| 13 | 194-IA | Payment for acquisition of immovable property | 1% | 0.75% |
| 14 | 194-IB | Payment of rent by individual or HUF | 5% | 3.75% |
| 15 | 194-IC | Payment for Joint Development Agreements | 10% | 7.5% |
| 16 | 194J | Fee 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) |
| 17 | 194K | Payment of dividend by Mutual Funds | 10% | 7.5% |
| 18 | 194LA | Payment of Compensation on acquisition of immovable property | 10% | 7.5% |
| 19 | 194LBA (1) | Payment of income by Business trust | 10% | 7.5% |
| 20 | 194LBB(i) | Payment of income by Investment fund | 10% | 7.5% |
| 21 | 194LBC(1) | Income by securitisation trust | 25% (For Individual/H UF and 30% for others) | 18.75% (For Individual/HUF and 22.5% for others) |
| 22 | 194M | Payment to commission, brokerage etc. by Individual and HUF | 5% | 3.75% |
| 23 | 194-O | TDS on e-commerce participants | 1% (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)