FY 2021-22: Applicability of TDS/TCS Rate and Threshold from 1st April 2021

In FY 2020-21, the government has announced a package of Rs. 20 Lakhs crore in which TDS rates were revised and cut by 25%. For this, the effective dates were 14 May 2020 and it remained applicable till 31st March 2021. Now from 1st April 2021, the rates have revised, which are given here.

TDS and TCS Rates applicable from 1st April 2021

Now from 1st April 2021 (FY 2021-22), the rates have changed and will apply for the whole year (subject to any change by the government). Here is the list of TDS and TCS Rates Applicable from 1st April 2021.

Also Read- Section 206AB: Higher Rate of TDS for non-filers of Income Tax Return

TDS Rates and Threshold Limits w.e.f. 1st April 2021

TDS section, nature of payments, threshold, and applicable TDS rates for the financial year 2021-22 are as follow-

Section of the Income Tax ActNature of PaymentTDS RatesThreshold Limit
192Salary IncomeSlab rates based on old and new tax regimeIncome Tax Slab
192AEPF- Premature Withdrawal10% (In case of no PAN @ 30%)Rs. 50,000
193Interest on Securities (except debenture)10%Rs. 10,000
193Interest on Debenture10%Rs. 5,000
194Dividend (other than listed companies)10% (No TDS on div payouts by REITs/InvITs) Rs. 5000
194AInterest other than interest
on securities by bank post/office
10%Rs. 40,000 (Rs. 50,000 for senior citizens)
Interest other than on securities by others10%Rs. 5,000
194BWinning from lotteries/puzzle/game30%Rs. 10,000
194CPayment of Contractors
and sub-contractors
1% (For Ind/HUF) and 2% for OthersRs. 1,00,000
194DInsurance Commission5% (Individuals) and 10% (Companies)Rs. 15,000
194DAPayment in respect of life
insurance policy
5%Rs. 1,00,000
194EPayment to non-resident sportsmen/sports association20%
194EEPayments in respect of
deposits under National
Savings Scheme (NSS)
10%Rs. 2,500
194FPayments on account of
re-purchase of Units by
Mutual Funds or UTI
20%
194GCommission, prize etc.,
on sale of lottery tickets
5%Rs. 15,000
194HCommission or brokerage5%Rs. 15,000
194-I(a)Rent for plant and machinery2%Rs. 2,40,000
194-I(b)Rent for land, building and furniture10%Rs. 2,40,000
194-IAPayment for acquisition
of immovable property (other than agriculture land)
1%Rs. 50 Lakhs
194-IBPayment of rent by individual or HUF5%Rs. 50,000 per month
194-ICPayment for Joint Development Agreements10%
194JFee for Professional or
Technical Services (FTS),
Royalty, etc.
2% (For FTS, certain royalties, call centre and 10% for others)Rs. 30,000
194KPayment of dividend by
Mutual Funds as per sec. 10 (23D)
10%Rs. 5,000
194 LAPayment of compensation on acquisition of immovable property10%Rs. 2,50,000
194 LBInterest from Infrastructure Bond to NRI5%
194 LDInterest on certain bonds and Govt. securities5%NA
194MPayment for contract work completed and professional work by Individual and HUF5%Rs. 50,00,000
194NCash Withdrawal during the P/Y2%Exceeds Rs. 1 Crore
194OTDS on e-commerce participants1%Rs. 5 Lakh
194QPurchase of goods (Applicable w.e.f. 01.07.2021)Rs. 50 Lakh .10% or Rs. 5% in case of no PAN of seller
TDS and TCS Rates applicable from 1st April 2021

Also Read-

TCS Rates w.e.f. 1st April 2021

TCS challan code, nature of receipts, and applicable TCS rates for the financial year 2021-22 are as follow-

Must Read- Due Date of TDS Payment and Return For FY 2021-22

Category- 1: Section 206C (1)

Challan CodeDescription/Nature of ReceiptsRate of TCS
6CAAlcoholic Liquor for Human Consumption1%
6CBTimber obtained under a forest lease2.5%
6CCTimber obtained by any other mode2.5%
6CDAny other forest produce not being timber or tendu lives2.5%
6CEScrap1%
6CITendu Leaves5%
6CJMinerals, being coal or lignite or iron ore1%
6CKBullion and Jewellery

Category- 2: Section 206C (1C)

Challan CodeDescription/Nature of ReceiptsRate of TCS
6CFParking lot2%
6CGToll Plaza2%
6CHMining and quarrying2%

Category- 3: Section 206C (1F)

Challan CodeDescription/Nature of ReceiptsRate of TCS
6CLMotor Vehicle (any mode of payment)1%

Also Read- FY 2021-22: Depreciation Rate Chart As Per Income Tax Act, 1961

Category- 4: Section 206C (1E)

Challan CodeDescription/Nature of ReceiptsRate of TCS
6CMCash Sale of Any Goods (Other than bullion/jewelry)
6CNProviding any services (Other than Ch-XVII-B)

Category- 5: Section 206C (1G)

Challan CodeDescription/Nature of ReceiptsRate of TCS
6COOverseas Tour Program Package5% (Non-PAN/Aadhar @ 10%)
6CPRemittance under LRS for education loan taken from financial institutions mentioned under section 80E.50%
6CQRemittance under LRS (For a purpose other than for the purchase of overseas tour package or for education loan taken from financial institutions mentioned under section 80E)5% (Non-PAN/Aadhar @ 10%)

Category- 6: Section 206C (1H)

Challan CodeDescription/Nature of ReceiptsRate of TCS
6CRSale of Goods.10% (Non-PAN/Aadhar @ 1%)

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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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