Switch to Cloud with ClearTDS!

  1. Generates error-free FVU files
  2. Safe and secure, 128-bit SSL

TDS stands for Tax Deducted at Source. The following tables list the various TDS rates applicable to resident and non-resident Indians as well as domestic and international companies in India. Any person paying income is responsible to deduct tax at source and needs to deposit this tax within the time stipulated.

COVID 19 and TDS Rates
The government has provided relief in the TDS rates for the period 14.05.2020 to 31.03.2021, due to the pandemic and resultant lockdown affecting all sectors of the economy. The relief is limited to the TDS rates only and not for the rates where tax needs to be deducted or collected at a higher rate.

The benefit of revision applies to only Resident Indians. Hence, Non residents cannot claim benefits of the same.

This article covers the following:

TDS Rates Applicable for Resident of India

Particulars

TDS Rate (%)

TDS Rates from 01.04.2020 to 13.05.2020

TDS Rates from 14.05.2020 to 31.03.2021

Section 192: Payment of salary

Section 192A: Premature withdrawal from EPF

Normal Slab Rate

10

Normal Slab Rate

10

Normal Slab Rate

10

Section 193: Interest on securities. a) any debentures or securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act; b) any debentures issued by a company where such debentures are listed on a recognized stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder; c) any security of the Central or State Government; d) interest on any other security

10

10

7.5

Section 194: Dividend other than the dividend as referred to in Section 115-O

10

10

7.5

Section 194A: Income by way of interest other than “Interest on securities”

w.e.f 1st April 2018, interest up to Rs. 50,000 earned by senior citizens on:

– deposit with banks

– deposit with post offices

– fixed deposits schemes

– recurring deposit schemes

will be exempt from TDS

w.e.f 1st April 2019, TDS on the interest income from post offices and bank deposits have increased up to Rs. 40,000 from the present limit of Rs. 10,000.

10

10

7.5

Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort

30

30

30

Section 194BB: Income by way of winnings from horse races

30

30

30

Section 194C: Payment to contractor/sub-contractors.

a)   HUF/Individuals

b)   Others

 

1

2

1

2

0.75

1.5

Section 194D: Insurance commission

5

( w.e.f 01.06.2016) (10% from 01.04.2015 to 31.05.2016

5

3.75

Section 194DA: Payment in respect of a life insurance policy

5

(w.e.f 01.09.2015)

1

(  w.e.f 01.06.2016)

(2% from 01.04.2015 to 31.05.2016)

5

3.75

Section 194EE: Payment in respect of deposit under National Savings scheme

10

(w.e.f 01.06.2016)

(20% from 01.04.2015 to 31.05.2016)

10

7.5

Section 194F: Payment on account of repurchase of a unit by Mutual Fund or Unit Trust of India

20

20

15

Section 194G: Commission, etc., on the sale of lottery tickets

5

(w.e.f  01.06.2016)

(10 % from 01.04.2015 to 31.05.2016)

5

3.75

Section 194H: Commission or brokerage

5

(w.e.f  01.06.2016)

(10 % from 01.04.2015 to 31.05.2016)

5

3.75

Section 194-I: Rent on a) Plant & Machinery

b) Land or building or furniture or fitting

W.e.f 1st April 2019, TDS limit for deduction of tax on rent is increased to Rs. 2,40,000 p.a from Rs.1,80,000 p.a.

(a) 2

(b) 10

2

10

1.5

7.5

Section 194-IA: Payment on transfer of certain immovable property other than agricultural land

Section 194 – IB: Rent payable by an individual or HUF not covered u/s. 194I (w.e.f from 01.06.2017)

Section 194 – IC:  Payment under Joint Development Agreements to Individual/HUF

(w.e.f. 01.04.2017)

1

 

5

(w.e.f from 01.06.2017)

(If payment of Rent exceeds Rs. 50,000/- per month. )

10

1

5

10

0.75

3.75

7.5

Section 194J: Any sum paid by way of:  a.  Fee for professional services (b)  Remuneration/fee/commission to a director ore) (c) For not carrying out any activity in relation to any business.  (d) For not sharing any know-how, patent, copyright etc.

(e) Fee for technical services and (f)  Royalty towards the sale or distribution or exhibition of cinematographic films.

10

2

10

2

7.5

1.5

Section 194 K:Payment of any income in respect of

(a) units of a mutual fund as per section 10(23D); or

(b) the units from the administrator; or

(c) units from specified company

(w.e.f. 01.04.2020)

10

10

7.5

Section 194LA: Payment of compensation on acquisition of certain immovable property

10

10

7.5

Section 194LBA: Certain income distributed by a business trust to its unit holder

10

10

7.5

Section 194LBB: Certain income paid by an investment fund to its investors

10

10

7.5

Section 194 LBC:Income in respect of investment in securitization fund

  1. Individual and HUF
  2. Others

25

30

25

30

18.75

22.5

Section 194M: Certain payments by Individual/HUF (Limit – 50 Lakhs)

5

5

3.75

Section 194N:Payment of certain amount in cash (Limit 1 Crore)

2

2

2

Section 194N:Payment of certain amount in cash (first proviso of section 194N)if-

–  The amount is more than Rs.20 lakh but up to Rs. 1 crore

–  The amount exceeds Rs. 1 crore (Applicable from 01.07.2020)

2

5

2

5

Section 194O:Applicable for e-commerce operator for the sale of goods or provision of services facilitated by it through its digital or electronic facility or platform (Applicable from 01.10.2020)

1

0.75

Any Other Income

10

10

10

TDS Rates Applicable for Non-Resident of India (NRIs)

Particulars

TDS Rate (%)

TDS Rates from 01.04.2020 to 13.05.2020

TDS Rates from 14.05.2020 to 31.03.2021

Section 192: Payment of Salary

Section 192A: Premature withdrawal from EPF

Normal Slab Rate

10

Normal Slab Rate

10

Normal Slab Rate

10

Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort

30

30

30

Section 194BB: Income by way of winnings from horse races

30

30

30

Section 194E: Payment to non-resident sportsmen/sports association

20

20

20

Section 194EE: Payment in respect of deposits under National Savings Scheme

10

 

10

10

Section 194F: Payment on account of repurchase of a unit by Mutual Fund or Unit Trust of India

20

20

20

Section 194G: Commission, etc., on sale of lottery tickets

5

 

5

5

Section 194LB: Payment of interest on infrastructure debt fund

5

5

5

Section 194LBA: Income from units of business trust

– interest received or receivable from a special purpose vehicle; or

– dividend referred to in sub-section (7) of section 115-O

5

10

5

10

5

10

Section 194LBC: Income in respect of investment in securitization fund

30

30

30

Section 194LC: Payment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds (including long-term infrastructure bond)

5

5

5

Section 194LD: Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor

5

5

5

Section 194N: Payment of a certain amount in cash (Limit 1 Crore)

2

2

2

Section 194N: Payment of certain amount in cash (first proviso of section 194N)if-

–  The amount is more than Rs.20 lakh but up to Rs. 1 crore

–  The amount exceeds Rs. 1 crore (Applicable from 01.07.2020)

2

5

2

5

Section 195: Payment of any other sum to a Non-resident

     

a) Income in respect of investment made by a Non-resident Indian Citizen

20

20

20

b) Income by way of long-term capital gains referred to in Section 115E in case of a Non-resident Indian Citizen

10

10

10

c) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-section (1) of Section 193

10

10

10

d) Income by way of short-term capital gains referred to in Section 111A

15

15

15

e) Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses (33), (36) and (38) of Section 10]

20

20

20

f) Income by way of interest payable by Government or an Indian concern on money borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC

20

20

20

g) Income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of a copyright in any book on a subject referred to in the first proviso to sub-section (1A) of Section 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of Section 115A of the Income-tax Act, to a person resident in India

10

10

10

h) Income by way of royalty [not being royalty of nature referred to in sub-item (b)(i)(F)] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy

10

10

10

i) Income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy

10

10

10

j) Any other income

30

30

30

Section 196A: Income in respect – of units of a Mutual Fund specified under clause (23D) of section 10; or

-from the specified company referred to in the Explanation to clause (35) of section 10

20

20

20

Section 196B: Income from units (including long-term capital gain on transfer of such units) to an offshore fund

10

10

10

Section 196C: Income from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR)

10

10

10

Section 196D: Income of Foreign Institutional Investors from securities (not being a dividend or capital gain arising from such securities)

20

20

20

TDS Rates Applicable for a Domestic Company

Particulars

TDS Rate (%)

TDS Rates from 01.04.2020 to 13.05.2020

TDS Rates from 14.05.2020 to 31.03.2021

Section 193: Interest on securities

a) any debentures or securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act;

b) any debentures issued by a company where such debentures are listed on a recognised stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder;

c) any security of the Central or State Government;

d) interest on any other security

10

10

7.5

Section 194: Dividend

10

10

7,5

Section 194A: Income by way of interest other than “Interest on securities”

10

10

7.5

Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort

30

30

30

Section 194BB: Income by way of winnings from horse races

30

30

30

Section 194C: Payment to contractor/sub-contractor

a) HUF/Individuals

b) Others

1

2

1

2

0.75

1.5

Section 194D: Insurance commission

10

10

10

Section 194DA: Payment in respect of the life insurance policy

5

(w.e.f 01.09.2015)

1

(  w.e.f 01.06.2016)

(2% from 01.04.2015 to 31.05.2016)

5

3.75

Section 194EE: Payment in respect of deposit under National Savings scheme

10

(w.e.f 01.06.2016)

(20% from 01.04.2015 to 31.05.2016)

10

7.5

Section 194F: Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India

20

20

15

Section 194G: Commission, etc., on sale of lottery tickets

5

(w.e.f  01.06.2016)

(10 % from 01.04.2015 to 31.05.2016)

5

3.75

Section 194H: Commission or brokerage

5

(w.e.f  01.06.2016)

(10 % from 01.04.2015 to 31.05.2016)

5

3.75

Section 194-I: Rent

a) Plant & Machinery

b) Land or building or furniture or fitting

2

10

2

10

1.5

7.5

Section 194-IA: Payment on transfer of certain immovable property other than agricultural land

Section 194 – IB: Rent payable by an individual or HUF not covered u/s. 194I (w.e.f from 01.06.2017)

Section 194 – IC:  Payment under Joint Development Agreements to Individual/HUF

(w.e.f. 01.04.2017)

1

5

(w.e.f from 01.06.2017)

(If payment of Rent exceeds Rs. 50,000/- per month. )

10

1

5

10

0.75

3.75

7.5

Section 194J: Any sum paid by way of

a) Fee for professional services (b) Remuneration/fee/commission to a director (c) For not carrying out any activity in relation to any business (d) For not sharing any know-how, patent, copyright etc.

e) Fee for technical services and (f)  Royalty towards the sale or distribution or exhibition of cinematographic films.

10

2

10

2

7.5

1.5

Section 194LA: Payment of Compensation on the acquisition of certain immovable property

10

10

7.5

Section 194LBA: Certain income distributed by a business trust to its unit holder

10

10

7.5

Any Other Income

10

10

7.5

TDS Rates Applicable for a company other than Domestic Company

Particulars

TDS Rate (%)

TDS Rates from 01.04.2020 to 13.05.2020

TDS Rates from 14.05.2020 to 31.03.2021

Section 194B: Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort

30

30

30

Section 194BB: Income by way of winnings from horse races

30

30

30

Section 194E: Payment to the non-resident sports association

20

20

20

Section 194G: Commission, etc., on the sale of lottery tickets

5

5

5

Section 194LB: Payment of interest on infrastructure debt fund

5

5

5

Section 194LBA: Certain income distributed by a business trust to its unit holder

5

5

5

Section 194LBC: Income in respect of securitization of funds

40

40

40

Section 194LC: Payment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds (including long-term infrastructure bond)

5

5

5

Section 194LD: Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor

5

5

5

Section 195: Payment of any other sum) Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-section (1) of Section 112

10

10

10

b) Income by way of short-term capital gains referred to in Section 111A

15

15

15

c) Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses (33), (36) and (38) of Section 10]

20

20

20

d) Income by way of interest payable by Government or an Indian concern on money borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC)

20

20

20

e) Income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such royalty is in consideration for the transfer of all or any rights (including the granting of a license) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of Section 115A of the Income Tax Act, to the Indian concern or in respect of any computer software referred to in the second proviso to sub-section (1A) of Section 115A of the Income Tax Act, to a person resident in India

10

10

10

f) Income by way of royalty [not being royalty of nature referred to in sub-item (b)(iv)] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy—

10

10

10

A. where the agreement is made after the 31st day of March 1961 but before the 1st day of April 1976.

where the agreement is made after the 31st day of March 1976

50

 

10

50

 

10

50

 

10

g) Income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy—

     

A. where the agreement is made after the 29th day of February 1964 but before the 1st day of April, 1976B.

where the agreement is made after the 31st day of March 1976

Any other income

50

 

10

40

50

 

10

40

50

 

10

40

Section 196B: Income from units (including long-term capital gain on transfer of such units) to an offshore fund

10

10

10

Section 196C: Income from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR)

10

10

10

Section 196D: Income of foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities)

20

20

20

Click here to read guides about TaxCloud’s Income Tax Return software

ClearTDS is so simple that you don’t even need to read these guides!

Start TDS Return

 

Know more