The following table gives the reduced TDS rates in force from 14th May, 2020 to 31st March 2021.
| S. No | Section of The Income Tax Act | Nature of Payment | Existing Rate of TDS | Reduced Rate From May 14, 2020 to March 31, 2021 |
| 1 | 193 | Interest on Securities | 10% | 7.5% |
| 2 | 194 | Dividend | 10% | 7.5% |
| 3 | 194A | Interest other than Interest on securities | 10% | 7.5% |
| 4 | 194C | Payment of Contractors and sub-contractors | 1% (individual/HUF) 2% (others) | 0.75 (individual/HUF) 1.5% (other) |
| 5 | 194D | Insurance Commission | 5% | 3.75% |
| 6 | 194DA | Payment in respect of life insurance policy | 5% | 3.75% |
| 7 | 194EE | Payments in respect of Deposits under National Savings Scheme | 10% | 7.5% |
| 8 | 194F | Payments on account Of re-purchase of Units By Mutual Funds or UTI | 20% | 15% |
| 9 | 194G | Commission, prize etc., On sale of lottery tickets | 5% | 3.75% |
| 10 | 194H | Commission or brokerage | 5% | 3.75% |
| 11 | 194-I(a) | Rent for plant and machinery | 2% | 1.5% |
| 12 | 194-I(b) | Rent for immovable property | 10% | 7.5% |
| 13 | 194-IA | Payment for acquisition Of immovable property | 1% | 0.75% |
| 14 | 194-IB | Payment of rent by individual or HUF | 5% | 3.75% |
| 15 | 194-IC | Payment for Joint Development Agreements | 10% | 7.5% |
| 16 | 194J | Fee 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) |
| 17 | 194K | Payment of dividend by Mutual Funds | 10% | 7.5% |
| 18 | 194LA | Payment of Compensation on Acquisition of immovable property | 10% | 7.5% |
| 19 | 194LBA(1) | Payment of income by Business trust | 10% | 7.5% |
| 20 | 194LBB(i) | Payment of income by Investment fund | 10% | 7.5% |
| 21 | 194LBC(1) | Income by Securitisation trust | 25% (Individual/HUF) 30% (Others) | 18.75% (Individual/HUF) 22.5% (Others) |
| 22 | 194M | Payment to commission, brokerage etc. by Individual and HUF | 5% | 3.75% |
| 23 | 194-O | TDS on e-commerce participants | 1% (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. No | Section of The Income Tax Act | Nature of Payment | Existing Rate of TCS | Reduced rate From May 14, 2020 to March 31, 2021 |
| 1 | 206C(1) | Sale of | ||
| (a) Tendu Leaves | 5% | 3.75% | ||
| (b)Timber obtained under a Forest lease | 2.5% | 1.875% | ||
| (c) Timber obtained by any Other mode | 2.5% | 1.875% | ||
| (d)Any other forest produce Not being timber/tendu leave | 2.5% | 1.875% | ||
| (e) scrap | 1% | 0.75% | ||
| (f) Minerals, being coal or Lignite or iron ore | 1% | 0.75% | ||
| 2 | 206C(1C) | Grant of license, lease, etc. of (a) Parking lot | 2% | 1.5% |
| (b) Toll Plaza | 2% | 1.5% | ||
| (c) Mining and quarrying | 2% | 1.5% | ||
| 3 | 206C(1F) | Sale of motor vehicle above 10 lakhs | 1% | 0.75% |
| 4 | 206C(1H) | Sale of any other goods | 0.1% (w.e.f October 1, 2020) | 0.75% |
Note:
- 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.
