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

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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 applicable 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 Rates For FY 2021-22
TDS and TCS Rates applicable from 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 Act Nature of Payment TDS Rates Threshold Limit
192 Salary Income Slab rates based on old and new tax regime Income Tax Slab
192A EPF- Premature Withdrawal 10% (In case of no PAN @ 30%) Rs. 50,000
193 Interest on Securities (except debenture) 10% Rs. 10,000
193 Interest on Debenture 10% Rs. 5,000
194 Dividend (other than listed companies) 10% (No TDS on div payouts by REITs/InvITs) Rs. 5000
194A Interest 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 others 10% Rs. 5,000
194B Winning from lotteries/puzzle/game 30% Rs. 10,000
194C Payment of Contractors
and sub-contractors
1% (For Ind/HUF) and 2% for Others Rs. 1,00,000
194D Insurance Commission 5% (Individuals) and 10% (Companies) Rs. 15,000
194DA Payment in respect of life
insurance policy
5% Rs. 1,00,000
194E Payment to non-resident sportsmen/sports association 20% —
194EE Payments in respect of
deposits under National
Savings Scheme (NSS)
10% Rs. 2,500
194F Payments on account of
re-purchase of Units by
Mutual Funds or UTI
20% —
194G Commission, prize etc.,
on sale of lottery tickets
5% Rs. 15,000
194H Commission or brokerage 5% Rs. 15,000
194-I(a) Rent for plant and machinery 2% Rs. 2,40,000
194-I(b) Rent for land, building and furniture 10% Rs. 2,40,000
194-IA Payment for acquisition
of immovable property (other than agriculture land)
1% Rs. 50 Lakhs
194-IB Payment of rent by individual or HUF 5% Rs. 50,000 per month
194-IC Payment for Joint Development Agreements 10% —
194J Fee for Professional or
Technical Services (FTS),
Royalty, etc.
2% (For FTS, certain royalties, call centre and 10% for others) Rs. 30,000
194K Payment of dividend by
Mutual Funds as per sec. 10 (23D)
10% Rs. 5,000
194 LA Payment of compensation on acquisition of immovable property 10% Rs. 2,50,000
194 LB Interest from Infrastructure Bond to NRI 5% —
194 LD Interest on certain bonds and Govt. securities 5% NA
194M Payment for contract work completed and professional work by Individual and HUF 5% Rs. 50,00,000
194N Cash Withdrawal during the P/Y 2% Exceeds Rs. 1 Crore
194O TDS on e-commerce participants 1% Rs. 5 Lakh
194Q Purchase 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-

🎯 Section 206CCA: Higher Rate of TCS for non-filers of Income Tax Return

🎯 Section 194Q: Applicability, non-applicability, rate, and example

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

TCS Rates For FY 2021-22
TDS and TCS Rates applicable from 1st April 2021

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

Must Read- Depreciation Rate as Per Companies Act 2013 for FY 2021-22

Category- 1: Section 206C (1)

Challan Code Description/Nature of Receipts Rate of TCS
6CA Alcoholic Liquor for Human Consumption 1%
6CB Timber obtained under a forest lease 2.5%
6CC Timber obtained by any other mode 2.5%
6CD Any other forest produce not being timber or tendu lives 2.5%
6CE Scrap 1%
6CI Tendu Leaves 5%
6CJ Minerals, being coal or lignite or iron ore 1%
6CK Bullion and Jewellery —

Category- 2: Section 206C (1C)

Challan Code Description/Nature of Receipts Rate of TCS
6CF Parking lot 2%
6CG Toll Plaza 2%
6CH Mining and quarrying 2%

Category- 3: Section 206C (1F)

Challan Code Description/Nature of Receipts Rate of TCS
6CL Motor 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 Code Description/Nature of Receipts Rate of TCS
6CM Cash Sale of Any Goods (Other than bullion/jewelry) —
6CN Providing any services (Other than Ch-XVII-B) —

Category- 5: Section 206C (1G)

Challan Code Description/Nature of Receipts Rate of TCS
6CO Overseas Tour Program Package 5% (Non-PAN/Aadhar @ 10%)
6CP Remittance under LRS for education loan taken from financial institutions mentioned under section 80E .50%
6CQ Remittance 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 Code Description/Nature of Receipts Rate of TCS
6CR Sale of Goods .10% (Non-PAN/Aadhar @ 1%)
New Tax Route LinkedIn

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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