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 FY 2021-22 (1st April 2021), the rates have been revised, which are given here.
TDS and TCS Rates For FY 2021-22
TDS and TCS Rates For FY 2021-22 have changed and will apply for the whole year (subject to any change by the government). Here is the chart of TDS and TCS Rates For FY 2021-22
TDS Rates and Threshold Limits for FY 2021-22
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 the old and new tax regime | Income Tax Slab |
| 192A | PDF- 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 center 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 |
TCS Rates For FY 2021-22
TCS Challan Code, nature of receipts, and applicable TCS rates for the financial year 2021-22 are as follow-
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% |
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%) |
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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)