Minister of Finance of India Nirmala Sitharaman and Member of parliament Anurag Thakur announced that the current TDS rates shall be reduced by 25% from tomorrow till March 31 2021. TDS rates for Salaried persons shall remain unchanged and old rates shall apply as usual i.e. slab rates.
TDS Rate Charts Details: The Major Changes and new TDS section introduced by the Finance minister in the stimulus package will be in force from 14th May 2020.
New Turnover limit for the purpose of Tax deducted at Source (TDS) applicability as per Finance Act 2020
TDS Rate Charts: TDS was applicable to individual and HUF if their accounts are liable to Audit in section 44AB in previous year. The Finance Act 2020, says All individuals & HUF will be liable to deduct TDS if, the turnover had cross Rs. 1 Crore in case of business and Rs. 50 Lakhs in case of profession in previous year. These amendments shall take effect from 1 April 2020.
Below is the TDS rate for FY 2020-21. In the below chart applicable from 14th May 2020
- Individual include Individual and HUF
- Company and others include Company, Firm, LLP, Co-op Society, Local Authority.
Rates of TDS applicable for Financial Year 2020-21 Assessment Year 2021-22:
| Nature of Payment | Basic Cut off (Rs.) | Individual /Company and others New Rate %) | Individual /Company and others (Old Rate %) | If No Pan or Invalid PAN (Rate %) |
| 192 – Salaries | Slab Rate | Slab Rates | Slab Rates | 30% |
| 192A- Premature withdrawal from Employee Provident Fund | 50000 | Individual: 7.5% Company: NA | Individual: 10% Company: NA | 20% |
| 193 – Interest on securities | – | Individual: 7.5% Company: 7.5% | Individual: 10% Company: 10%` | 20% |
| 194 – Dividend other than the dividend as referred to in Section 115-O | 2500 | Individual: 7.5% Company: 7.5% | Individual: 10% Company: 10% | 20% |
| 194A – Interest other than interest on securities – Others | 40000 (for individual) | Individual: 7.5% | Individual: 10% Company: 10% | 20% |
| 194A – Banks (Time deposits) | 40000 (for individual) 50000 (for Senior Citizens only) | Company: 7.5% | Individual: 10% Company: 10% | 20% |
| 194A – Banks (Recurring deposit) | 40000 (for individual) 50000(for Senior Citizens only) | Individual: 7.5% | Individual: 10% Company: 10% | 20% |
| 194A – Deposit in Co-op Banks | 40000 (for individual) 50000(for Senior Citizens only) | Company: 7.5% | Individual: 10% Company: 10% | 20% |
| 194B – Winning from Lotteries | 10000 | Individual: 22.5% Company: 22.5% | Individual: 30% Company: 30% | 30% |
| 194BB – Winnings from Horse Race | 10000 | Individual: 22.5% Company: 22.5% | Individual: 30% Company: 30% | 30% |
| 194C- Payment to Contractor – Single Transaction | 30000 | Individual: 0.75% Company: 1.5% | Individual: 1% Company: 2% | 20% |
| 194C-Payment to Contractor – Aggregate During the Financial year | 100000 | Individual: 0.75% Company: 1.5% | Individual: 1% Company: 2% | 20% |
| 194C- Contract – Transporter not covered under 44AE | 30000 / 100000 | Individual: 0.75% Company: 1.5% | Individual: 1% Company: 2% | 20% |
| 194C- Contract – Transporter covered under 44AE & submit declaration on prescribed form with PAN | – | – | – | 20% |
| 194D – Insurance Commission | 15000 | Individual: 3.75% Company: 3.75% | Individual: 5% Company: 10% | 20% |
| 194DA Payment in respect of life insurance policy | 100000 | Individual: 0.75% Company: 0.75% | Individual: 1% Company: 1% | 20% |
| 194E – Payment to Non-Resident Sportsmen or Sports Association | – | Individual: 15% Company: 15% | Individual: 20% Company: 20% | 20% |
| 194EE – Payments out of deposits under National Savings Scheme | 2500 | Individual: 7.5% Company: 7.5% | Individual: 10% Company: 10% | 20% |
| 194F – Repurchase Units by MFs | – | Individual: 15% Company: 15% | Individual: 20% Company: 20% | 20% |
| 194G – Commission – Lottery | 15000 | Individual: 3.75% Company: 3.75% | Individual: 5% Company: 5% | 20% |
| 194H – Commission / Brokerage | 15000 | Individual: 3.75% Company: 3.75% | Individual: 5% Company: 5% | 20% |
| 194I – Rent – Land and Building – furniture – fittings | 240000 | Individual: 7.5% Company: 7.5% | Individual: 10% Company: 10% | 20% |
| 194I – Rent – Plant / Machinery / equipment | 240,000 | Individual: 1.5% Company: 1.5% | Individual: 2% Company: 2% | 20% |
| 194IA -Transfer of certain immovable property other than agriculture land | 50,00,000 | Individual: 0.75% Company: 0.75% | Individual: 1% Company: 1% | 20% |
| 194IB – Rent – Land or building or both | 50000 per month | Individual: 3.75% | Individual: 5% | 20% |
| 194IC – Payment of Monetary consideration under Joint development agreement | – | Individual: 7.5% Company: 7.5% | Individual: 10% Company: 10% | 20% |
| 194J – Professional Fees for technical services (w.e.f. from 1.4.2020) | 30000 | Individual: 1.5% Company: 1.5% | Individual: 2% Company: 2% | 20% |
| 194J – Professional Fees in all other cases | 30000 | Individual: 7.5% Company: 7.5% | Individual: 10% Company: 10% | 20% |
| 194K- Payment of any income in respect of Units of Mutual fund as per section 10(23D) or Units of administrator or from a specified company | – | Individual: 7.5% Company: 7.5% | Individual: 10% Company: 10% | 20% |
| 194LA – TDS on compensation for compulsory acquisition of immovable Property | 250000 | Individual: 7.5% Company: 7.5% | Individual: 10% Company: 10% | 20% |
| 194 LBA (1)- Business trust shall deduct tax while distributing, any interest received or receivable by it from a SPV or any income received from renting or leasing or letting out any real estate asset owned directly by it, to its unit holders. | Individual: 7.5% Company: 7.5% | Individual: 10% Company: 10% | 20% | |
| 194LB – Income by way of interest from infrastructure debt fund (non-resident) | – | Individual: 3.75% Company: 3.75% | Individual: 5% Company: 5% | 20% |
| 194LBB – Income in respect of investment in Securitisation trust. | – | Individual: 7.5% Company: 22.5% | Individual: 10% Company: 30% | 30% |
| 194LBC- Income in respect of investment made in a securitisation trust | – | Individual: 18.75% Company: 22.5% | Individual: 25% Company: 30% | 30% |
| 194 LC – 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 | – | Individual: 3.75% Company: 3.75% | Individual: 5% Company: 5% | 15% |
| 194LD – Interest on certain bonds and govt. Securities | – | Individual: 3.75% Company: 3.75% | Individual: 5% Company: 5% | 20% |
| 194M – Payment of Commission, brokerage, contractual fee, professional fee to a resident person by an Individual or a HUF who are not liable to deduct TDS under section 194C, 194H, or 194J. | 50,00,000 | Individual: 3.75% Company: 3.75% | Individual: 5% Company: 5% | 20% |
| 194N – Cash withdrawal in excess of Rs. 20 Lakh during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office. | 20,00,000 | Individual: 1.5% Company: 1.5% | Individual: 2% Company: 2% | 20% |
| 194N – Cash withdrawal in excess of Rs. 1 crore during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office. | 100,00,000 | Individual: 1.5% Company: 1.5% | Individual: 2% Company: 2% | 20% |
| 194O- Applicable for E-Commerce operator for sale of goods or provision of service facilitated by it through its digital or electronic facility or platform. | – | Individual: 0.75% Company: 0.75% | Individual: 1% Company: 1% | 20% |
| 195- Payment of any sum to Non resident | – | – | – | Higher of Rate in force or Double Taxation Avoidance Act rate |
| 196B – Income from units | – | Individual: 7.5% Company: 7.5% | Individual: 10% Company: 10% | 20% |
| 196C-Income from foreign currency bonds or GDR (including long-term capital gains on transfer of such bonds) (not being dividend) | – | Individual: 7.5% Company: 7.5% | Individual: 10% Company: 10% | 20% |
| 196D – Income of FIIs from securities | – | Individual: 15% Company: 15% | Individual: 20% Company: 20% | 20% |
Due dates for TDS quarterly Returns:
| Quarter | Period | Due Date |
| Q1 | 1 April 2020 – 30 June 2020 | 31st July 2020 |
| Q2 | 1 July 2020 – 30 September 2020 | 31st October 2020 |
| Q3 | 1 October 2020 – 31 December 2020 | 31st January 2020 |
| Q4 | 1 January 2020 – 31 March 2021 | 31st May 2021 |
Due dates for TDS payment:
| Month | Due date for Government deductors | Due date for other deductors (Company, Individual, HUF etc) |
| April | 7th May 2020 | 7th May 2020 |
| May | 7th June 2020 | 7th June 2020 |
| June | 7th July 2020 | 7th July 2020 |
| July | 7th August 2020 | 7th August 2020 |
| August | 7th September 2020 | 7th September 2020 |
| September | 7th October 2020 | 7th October 2020 |
| October | 7th November 2020 | 7th November 2020 |
| November | 7th December 2020 | 7th December 2020 |
| December | 7th January 2021 | 7th January 2021 |
| January | 7th February 2021 | 7th February 2021 |
| February | 7th March 2021 | 7th March 2021 |
| March | 7th April 2021 | 30th April 2021 |
Interest on late payment and Late deduction of TDS:
As per section 201(1A) Interest at the rate of 1% per month or part of the month on amount of TDS from the date of tax was deductible till the date of tax actually deducted shall be charged for late deduction.
Also, for late payment Interest at the rate of 1.5 % per month or part of the month on amount of TDS from the date of tax was deducted till the date such tax is paid shall be charged.
Interest on late payment of TDS: Changes made as per Taxation and other Laws (Relaxation of Certain Provisions) Ordinance, 2020 dated 24th March 2020:
For delayed payments of advanced tax, self-assessment tax, regular tax, TDS, TCS, equalization levy, STT, CTT made between 20th March 2020 and 30th June 2020, reduced interest rate at 9% instead of 12 %/18 % per annum (i.e. 0.75% per month instead of 1/1.5 percent per month) will be charged for this period. No late fee/penalty shall be charged for delay relating to this period.
Fees for default in filing of TDS/ TCS return:
Fees is payable at Rs. 200 per day for each day during which the failure continues. The amount of fees cannot exceed than the amount of TDS.