Revised TDS & TCS Rates | Professional Utilities
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Revised TDS & TCS Rates

Revised TDS & TCS Rates

In order to increase the liquidity in the hands of common people Govt on 13th May 2020, Wednesday announced various relief measures, and among them are the reduction in the rates of TDS/TCS by 25% on Non- Salaried payments. No Salaried Payments include interest in Fixed Deposits, dividend incomes, etc.

The new rates will come into effect from May 14, 2020, and will remain effective till March 31, 2021, i.e., till the end of the financial year 2020-21,

TDS Rate Chart for FY 2020-2021(AY 2021-2022) after considering the changes w.e.f 14.05.2020
Section Nature of Payment Threshold Limit TDS effective till May, 13, 2020 TDS effective w.e.f May, 14,2020
Resident Non Resident Resident Non Resident
192 Salaries - Normal slab rate Normal slab rate Normal slab rate Normal slab rate
192A Premature Withdrawal from EPF 50,000 10% 10% 10% 10%
192A Premature Withdrawal from EPF 50,000 10% 10% 10% 10%
193 Interest received on Securities-

any security of the Central or State Government;

[i.e. 8% Savings (Taxable) Bonds, 2003 and 7.75% Saving (Taxable) Bonds, 2018]

 10,000 7.5% - 7.5% -
Interest on securities

-any debentures or securities for money issued by or on behalf of any local authority or a corporation, any debentures issued by companies (listed on recognised stock exchange) or interest on any other securities,

 5000 in case of individual50,000 10% - 7.5% -
194 Income by way of dividends 5,000 10% - 7.5% -
194A Interest(banks) 40,000 10% - 7.5% -
Interest (others) 5,000 10% - 7.5% -
Interest (to senior citizen) 50,000 10% - 7.5% -
Interest (on compensation awarded by payment of motor Accident Claim Tribunal) 50,000 10% - 7.5% -
194B Winning from lotteries 10,000 30% 30% 30% 30%
194BB Winning from horse races 10,000 30% 30% 30% 30%
194C Payment to contractors/sub contractors

Single payment-

Individual/HUF

oTHERS

Consolidated payment during the Year-

Individual/HUF

Others

 30,000

10,000

 1%

2%

1%

2%

 -

-

-

-

-

 0.75%

1.5%

0.75%

1.5%

 -

-

-

-

-
194D Insurance commission

Other than company-

Company-

 15,000 5%

10%

 -

-

 3.75%

7.5%

 -

-
194DA Payment in respect of Life insurance policy 1,00,000 5% - 3.75% -
194E Non Resident Sportsmen or sports association - N.A. 20% N.A. 20%
194EE Payment made out of deposits under NSS 2,500 10% 10% 7.5% 10%
194F repurchase of unit by Mutual Fund or Unit Trust of India - 20% 20% 15% 20%
194G Commission, etc., on sale of lottery tickets 15,000 5% 5% 3.75% 5%
194H payment of commission or brokerage 15,000 5% - 3.75% -
194I Rent- Plant & machinery

Land/building/furniture/fittings

 2,40,000 2%

10%

 - 1.5%

7.5%

 -
194-IA transfer of certain immovable property other than agricultural land

 5,00,000 1% - 0.75% -
194-IB Rent by Individual/HUF not liable to Tax Audit (other than rent covered under 194-I)

 50,000pm 5% - 3.75% -
194-IC Payment of monetary consideration under Joint Development Agreements to Individual /HUF - 10% - 7.5% -
194J Professional Fees 30,000 10% - 7.5% -
Technical fees 30,000 2% - 1.5% -
Payment to call centre operators (w.e.f June 1, 2017) 30,000 2% - 1.5% -
Director’s fee - 10% - 7.5% -
194K Payment of any in respect of :(w.e.f : 1-04-2020)
  1. Units of MF as per sec 10(23D)
  2. Units from the administrator
  3. Units from specified company
 5,000 10% - 7.5% -
194LA compensation on acquisition of certain immovable property(other than agricultural land) 2,50,000 10% - 7.5% -
194LB Income by way of Interest from infrastructure debt fund to Non Resident(not being a company or to a foreign company) - 5% - 5% -
194LBA Income from the units of business trust:

-interest received/receivable from special purpose vehicle; or

-Dividend referred to in sub sec (7) of sec 115-O

 - 10%

10%

 5%

10%

 7.5%

7.5%

 5%

10%
Distribution of rental income to unit holders:

-other than company

-company

 - 10%

10%

 30%

40%

 7.5%

7.5%

 30%

40%
194LBB Income in respect of units of investment funds:

-other than company

-company

 - 10%

10%

 30%

40%

 7.5%

7.5%

 30%

40%
194LBC Income in respect of investment made in a securitisation trust :

-individual/HUF

-other person

-company

 - 25%

30%

30%

 30%

30%

40%

 18.75%

22.5%

22.5%

 30%

30%

40%
194LC Income by way of interest by an Indian specified company to a non-resident/foreign company on foreign currency approved loan / long-term infrastructure bonds from outside India - - 5% - 5%
Income by way of interest by an Indian specified company on rupee denominated bond / any long-term bonds from outside India, which is listed only on a recognized stock exchange located in any IFSC - - 4% - 4%
194LD Interest on rupee denominated bonds of an Indian company or govt securities to a foreign institutional investors or qualified foreign investor - - 5% - 5%
194M Payment made to professional or commission or brokerage 50,00,000 5% - 3.73% -
194N Cash payment /withdrawal of certain amount 1 Crore 2% 2% 2% 2%
194N Cash payment/ withdrawal of certain amount -assessee has not filed the ITR for 3 PY immediately preceeding the previous year in which cash is withdrawn

  1. Exceeding 20 lakh but upto Rs 1 crore
  2. Exceeding 1 crore

 20,00,000 2%

5%

 2%

5%

 2%

5%

 2%

5%
194O Payment by e-commerce operator to e commerce participant 5,00,000 1% - 0.75% -
195 Income of investment by an NRI - - 20% - 20%
LTCG u/s:

115E/112(1)(c)(iii)/112A

 - - 10% - 10%
Any other LTCG - - 20% - 20%
STCG u/s 111A - - 15% - 15%
Interest income payable by Govt./Indian concern (other than section 194LB or 194LC) - - 20% - 20%
Royalty - - 10% - 10%
Fees for technical services - - 10% - 10%
Other income

-other than company

-company

 - - 30%

40%

 - 30%

40%
Income in respect of:

-units of mutual funds u/s 10(23D) or UTI

 - - 20% - 20%
196B Income from units to an offshore fund - - 10% - 10%
196C Income from foreign currency bond or GDR of Indian company - - 10% - 10%
196D Income of foreign institutional investors from securities - - 20% - 20%

* The rate of TDS shall be increased by applicable surcharge and Health & Education cess.

TCS Rates effective from May 14, 2020 for FY 2020-2021(AY: 2021-2022):

Section Nature of Payment TCS effective till May, 13, 2020 TCS effective w.e.f May, 14,2020
206C Sale of tendu leaves 5% 3.75%
206C Sale of timber obtained under forest lease 2.5% 1.88%
206C Sale of timber obtained by any other mode 2.5% 1.88%
206C Sale of any other forest produce not being timber/tendu leaves 2.5% 1.88%
206C Sale of scarp 1% 0.75%
206C Alcoholic liquor for human consumption and Indian made foreign liquor 1% 1%
206C Sale of Mineral, being coal, iron ore, lignite 1% 0.75%
206C Grant of license, lease etc of parking lot 2% 1.5%
206C Grant of license, lease etc of parking lot 2% 1.5%
206C Grant of license, lease etc of Toll Plaza 2% 1.5%
206C Grant of license, lease etc of mining and Quarrying 2% 1.5%
206C Sale of motor vehicle above 10 lakhs 1% 0.75%
206C Sale of any other goods 0.1% (w.e.f 01.10.2020) 0.075%
206C Remittance under Liberalized Remittance Scheme of value exceeding 7 lakh in a financial year 5% (w.e.f 01.10.2020) 5% (w.e.f 01.10.2020)
206C Sale of overseas tour programme package 5% (w.e.f 01.10.2020) 5% (w.e.f 01.10.2020)
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