Friday, May 15, 2020

Reduced TDS Rates FY 2020-21 (AY 2021-22)

The following table gives the reduced TDS rates in force from 14th May, 2020 to 31st March 2021.
S. NoSection of The Income Tax ActNature of PaymentExisting Rate
of TDS
Reduced Rate From May 14, 2020 to March 31, 2021
1193Interest on Securities10%7.5%
3194AInterest other than
Interest on securities
4194CPayment of
Contractors and sub-contractors
1% (individual/HUF)
2% (others)
0.75 (individual/HUF)
1.5% (other)
5194DInsurance Commission5%3.75%
6194DAPayment in respect of life insurance policy5%3.75%
7194EEPayments in respect of Deposits under National Savings Scheme10%7.5%
8194FPayments on account Of re-purchase of Units By Mutual Funds or UTI20%15%
9194GCommission, prize etc., On sale of lottery tickets5%3.75%
10194HCommission or brokerage5%3.75%
11194-I(a)Rent for plant and machinery2%1.5%
12194-I(b)Rent for immovable property10%7.5%
13194-IAPayment for acquisition
Of immovable property
14194-IBPayment of rent by individual or HUF5%3.75%
15194-ICPayment for Joint Development Agreements10%7.5%
16194JFee for Professional or Technical Services (FTS), Royalty, etc.2% (FTS, Certain royalties, Call Centre) 10% (others)1.5% (FTS, Certain royalties, Call Centre) 7.5% (others)
17194KPayment of dividend by Mutual Funds10%7.5%
18194LAPayment of Compensation on Acquisition of immovable property10%7.5%
19194LBA(1)Payment of income by Business trust10%7.5%
20194LBB(i)Payment of income by Investment fund10%7.5%
21194LBC(1)Income by Securitisation trust25% (Individual/HUF) 30% (Others)18.75% (Individual/HUF) 22.5% (Others)
22194MPayment to commission, brokerage etc. by Individual and HUF5%3.75%
23194-OTDS on e-commerce participants1% (w.e.f. October 1, 2020)0.75%
The Tax Collection at Source (TCS) Rates for the same period are also reduced as under.

S. NoSection of The Income Tax ActNature of PaymentExisting Rate
of TCS
Reduced rate From May 14, 2020 to March 31, 2021
206C(1)Sale of
(a) Tendu Leaves5%3.75%
(b)Timber obtained under a Forest lease2.5%1.875%
(c) Timber obtained by any Other mode2.5%1.875%
(d)Any other forest produce Not being timber/tendu leave2.5%1.875%
(e) scrap1%0.75%
(f) Minerals, being coal or Lignite or iron ore1%0.75%
206C(1C)Grant of license, lease, etc. of
(a) Parking lot
(b) Toll Plaza2%1.5%
(c) Mining and quarrying2%1.5%
3206C(1F)Sale of motor vehicle above 10 lakhs1%0.75%
4206C(1H)Sale of any other goods0.1%
(w.e.f October 1, 2020)

- There shall be no reduction in rates of TDS or TCS, Where the tax is required to be deducted or collected at higher rate due to non-furnishing of PAN/Aadhaar.
- There is no reduction in TDS on payment of salaries.