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21-Mar-2021

TDS Rates  effective from 01st April 2021

The concept of TDS was introduced with an aim to collect tax from the very source of income. As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government. The deductee from whose income tax has been deducted at source would be entitled to get credit of the amount so deducted on the basis of Form 26AS or TDS certificate issued by the deductor. The payment includes salary, commission, professional fees, interest, rent, etc.

TDS section, Threshold and applicable TDS Rate for the Financial year 2021- 22 as follows

Section  asper income tax Act Particulars Threshold limit for TDS applicability Applicable TDS rate %
192 Salary Income Income Tax Slab Slab rates  
Based on old and New Regime  
192 A EPF – Premature withdrawal Rs 50,000 10%  
If no Pan, TDS @ 30%  
193 Interest on Securites Rs. 10,000 10%  
193 Interest on Debentures Rs 5,000 10%  
194 Dividend Rs 5,000 10%  
(Dividend other than listed companies) (No TDS on Div Payouts by REITs / InvITs)  
     
194 A Interest other than on securities by banks / post office Rs. 40,000 10%  
(Rs 50,000 for Senior Citzens)  
194 A Interest other than on securities by others Rs. 5,000 10%  
194 B Winnings from Lotteries / Puzzle / Game Rs. 10,000 30%  
194 BB Winnings from Horse Race Rs. 10,000 30%  
194 C Contractor-Single transaction- Rs.30,000    
Individual/HUF 1%  
  -Others 2%  
194 C Contractor- Consolidated payment transaction- Rs.1,00,000    
Individual/HUF 1%  
  -Others 2%  
194 D Payment of Insurance Commission Rs. 15,000 5% (Individuals)  
(Form 15G/H can be submitted) 10% (Companies)  
194DA Payment in respect of Life Insurance Policy Rs 1,00,000 5%  
194E Payment to non-resident sportsmen/sports association – 20%  
194 EE Payment of NSS Deposits Rs 2,500 10%  
194 G Commission on Sale of Lottery tickets Rs 15,000 5%  
194 H Commission or Brokerage Rs 15,000 5%  
194 I Rent of Land, Building or Furniture Rs. 2,40,000 10%  
194I Rent of Plant & Machinery Rs. 2,40,000 2%  
194 IB Rent Rs 50,000 (per month) 5%  
(Tenant has to deduct TDS)  
(Individuals who are not liable to Tax Audit)  
194 IA Transfer of Immovable Property, other than Agricultural land Rs. 50 lakh 1%  
194IC Payment of monetary consideration under Joint Development Agreements – 10%  
194J Fees for professional or technical services Rs 30,000 2% (or) 10%  
194LA Payment of compensation on acquisition of certain immovable property Rs 2,50,000 10%  
194 LB Interest from Infrastructure Bond to NRI NA 5%  
194 LD Interest on certain bonds and govt. Securities NA 5%  
194N Cash withdrawal 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: > Rs 1cr 2%  
194Q Purchase of goods (applicable w.e.f 01.07.2021) Rs 50 lakh 0.10%  
206AB TDS on non-filers of ITR at higher rates – 5% or Twice the rates in force  
(applicable w.e.f 01.07.2021)    
194P TDS on Senior Citizen above 75 Years (No ITR filing cases) – Slab Rates  

TCS – Tax collected at Source – Rates effective from 01st April 2021

SECTION 206C (1)
TCS Deposit Challan Code Goods & Services liable to TCS TCS Rate (%)
6CA Alcoholic liquor for human consumption 1
6CB Timber obtained under Forest lease 2.5
6CC Timber obtained by any mode other than under a forest lease 2.5
6CD Any other forest produce not being timber or tendu leaves 2.5
6CE Scrap 1
6C1 Tendu Leaves 5
6CJ Minerals, being coal or lignite or iron ore 1
6CK Bullion &Jewelry Omitt. by Finance Act 2017 (w.e.f. 1­4-2017)
SECTION 206C (IC)
6CF Parking Lot 2
6CG Toll Plaza 2
6CH Mining & Quarrying 2
SECTION 206C (IF)
6CL Motor Vehicle (any mode of payment)

 

(Seller, who receives any amount as consideration for sale of a motor vehicle of the value exceeding 10 lakh Rupees)

  1
SECTION 206C (1E)
6CM Cash Sale of any goods (other than bullion/jewelry) Omitt. by Finance A 1- Act 2017 (w.e.f.

 

4-2017)
6CN Providing any services (other than Ch-XV11-B) Omitt. by Finance Act 2017 (w.e.f. 1- 4-2017)
SECTION 206C (IG)
6C0 Overseas Tour Program Package

 

(Every person being a seller of an overseas tour program package, who receives any amount from a buyer, being the person who purchases such package)

 5

 

(TCS in case of
Non-Furnishing of
PAN/Aadhar 10%)
6CP Remittance under LRS for education loan taken from financial institution mentioned under section 80E(Amount or aggregate of the amounts in excess of 7 lakh rupees remitted by the buyer in a financial year, if the amount being remitted out is a loan obtained from any financial institution as defined in section 80E, for the purpose of pursuing any education) 0.50
6CQ Remittance under LRS (for purpose other than for purchase of overseas tour package or for education loan taken from financial institution mentioned under section 80E  (Person, being an authorised dealer, who receives an amount/aggregate of amounts exceeding 7 Lakh, for remittance out of India from a buyer, being a person remitting such amount out of India under the Liberalised Remittance Scheme of the Reserve Bank of India) 5

 

(TCS in case of
Non-Furnishing of
PAN/Aadhar 10%)
SECTION 206C (111)
6CR Sale of Goods

 

Every person, being a seller, who receives any amount as consideration for sale of any goods of the value or aggregate of such value exceeding 50 lakh rupees in any previous year, other than the goods being exported out of India or goods covered in sub-section (1) or sub-section (1F) or sub-section (1G)

Budget Update

 0. 1

 

(TCS in case of
Non-Furnishing of
PAN/Aadhar 1%)
In case of transaction on which TDS u/s.194Q is applicable w.e.f 01/07/2021, then TCS u/s.206C(1H) not applicable
       

Source: https://taxguru.in/income-tax/income-tax-tds-tcs-rates-effective-01st-april-2021.html

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