NEW TDS RATES FOR FY 20-21

Posted by Akash Goel
On 22 May 2020

As our country is going through a very tough phase due to COVID-19, our Honorable Prime Minister Shri Narender Modi had announced a special package of Rs 20 lacs crore to help the people of India. This package helps to increase the liquidity in the hands of the common man and battle COVID-related financial stress. On May 13 2020, the Finance Minister announces various relief measures, among them, reduction in the tax deducted at source (TDS) and tax collected at source (TCS) by 25 percent on non-salaried payments, was one relief. Non- salaried payments include interest earned on fixed deposit, dividend income, rent payment, etc.
The existing rates and New Rates of TDS & TCS are as follows:-

SECTIONNATURE OF PAYMENTTHRESHOLD LIMITTILL 13/05/2020
TDS
RATE (%)
FROM
13/05/2020
TDS RATE(%)

192
SALARIESNORMAL SLAB RATENORMAL SLAB RATE
192APremature withdrawal from EPF500001010
193Interest on securities – 8% Savings (Taxable) Bonds, 2003 or 7.75% Savings (Taxable) Bonds, 2018 during the financial year10,000107.5
193Interest on securities – Interest on securities for money issued by or on behalf of any local authority/ statutory corporation, listed debentures of a company (other than demat form), any other interest on securities5000 in case of Individual107.5
194Dividends5000107.5
194AInterest (Banking co., co-operative society engaged in banking, post office)50,000107.5
194AInterest (Any other person)5000107.5
194B
Winning from lotteries10,0003030
194BBWinning from Horse Race10,0003030
194CContractor-Single transaction-Individual/HUF30,000 for each contract whereas 1,00,000 is for p.a 10.75
194CContractor-Single transaction- Others30,000 for each contract whereas 1,00,000 is for p.a 21.5
194DInsurance Commission15,00053.75
194EENSS2500107.5
194FInvestment in Mutual Funds or UTI units02015
194GCommission-Lottery15,00053.75
194HBrokerage Earning15,00053.75
194IRent of – Plant/Machinery/Equipment

– Land and
Building/Furniture & Fixture
2,40,0002


10
1.5


7.5
194JProfessional Fees30,000107.5
194LACompensation on transfer of certain immovable property other than agriculture land2,50,000107.5
194MCertain payments by Individual/HUF50,00,00053.75
194NPayment of certain amount in cash1,00,00,00022
195Fees for technical services01010
194-OApplicable for e-commerce operator for the sale of goods or provision of services facilitated by it through its digital or electronic facility or platform (w.e.f. 01.04.2020)010.75
194JTechnical Fees (w.e.f. 01.04.2020)30,00021.5
194JDirector’s Fees0107.5
194ICPayment under Joint Development Agreements to Individual/HUF0107.5
194IBRent by Individual/HUF50,000 per month53.75
194IATransfer of certain immovable property other than agriculture land50,00,00010.75

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