Rate of TDS applicable for the period

(Individual /Company and others New Rate

%)
Threshold Limit for If No
Section Nature of Payment Remarks
deduction tax Pan or
Individual Company Other Invalid
PAN
(Rate)
As per Slab [Please note
that no Change in Slab
192 Salary Rates have been Slab Rates Slab Rates - 30 Option to choose between new and old tax slab regime for salaried employees
introduced for FY 2021-
22]

Premature withdrawal from

Employee Provident Fund
TDS provisions u/s 192A will be applicable when withdrawal of accumulated balance in
(Payment of accumulated
192-A Rs.50,000 10 NA NA 20 Recognized Providend Fund is to be included in the total income 10% in case of Resident and
balance of provident fund
which is taxable in the hands
10.40% in case of Non- Resident
of an employee)

Threshold limit for interest paid on debentures is Rs. 5,000. Threshold limit for interest on
193 Interest on securities - 10 10 - 20
7.75% GOI Savings (Taxable) Bonds 2018 is Rs. 10,000.

This amendment proposes to amend second proviso to section 194 of the Act to further
Dividend other than the provide that the provisions of section 194 i.e. TDS on dividend shall also not apply to dividend
194 dividend as referred to in Rs.2500 10 10 - 20 income credited or paid to a business trust by a special purpose vehicle or payment of
Section 115-O dividend to any other person as may be notified. This means that no TDS needs to be
deducted to AIF Category III also.

Interest other than interest on

securities – Banks Time * Senior Citizen Rs.
194-A deposits, Recurring deposit 50,000 10 - - 20 15G/15H applicable
and Deposit in * Others Rs. 40,000
Co-op Banks

Page 1 of 8 Compiled by CA Jainish R. Parikh

 Rate of TDS applicable for the period
(Individual /Company and others New Rate
%)
Threshold Limit for If No
Section Nature of Payment Remarks
deduction tax Pan or
Individual Company Other Invalid
PAN
(Rate)

Income by way of winnings

from lotteries, crossword
* 30% in case of Resident Indians and Domestic Companies
194-B puzzles, card games and other Rs. 10,000 30 30 30
* 31.2% in case of Non Resident and Foreign Companies
games of any
sort

Income by way of winnings * 30% in case of Resident Indians and Domestic Companies
194-BB Rs. 10,000 30 30 30
from horse races * 31.2% in case of Non Resident and Foreign Companies

 Single paent  Rs.

30,000 TDS is not applicable on paent to Contractor engaged in pling, hiring or leasing of goods
194-C Payment to Contractors 1 2 20
 Aggregate paent carriages, where such contractor owns 10 or less goods carriages during the Financial Year.
Rs. 1,00,000

* 10%: If deductee is domestic Company

194-D Insurance commission Rs 15,000 5 10 - 20
* 5%: In any other case

Payment in respect of life
insurance policy, the tax shall
be deducted on the amount of
194-DA
income comprised in
insurance
pay-out
Section 194DA is not applicable in case of aount is exept u/s 10(10D) i.e. the Su is
received at the tie of aturit of polic or Death benefit received. For 15G/15H can be
given wherever applicable.
Rs. 1,00,000 5 5 - 20
Tax is deducted on incoe part onl i.e after deducting the aount of insurance preius
paid b the insured person fro the total su received fro Insurance Copan

Page 2 of 8 Compiled by CA Jainish R. Parikh

 Rate of TDS applicable for the period
(Individual /Company and others New Rate
%)
Threshold Limit for If No
Section Nature of Payment Remarks
deduction tax Pan or
Individual Company Other Invalid
PAN
(Rate)

Payment to non-resident
194-E - 20 20 - 20 The rate of TDS shall be increased b applicable surcharge and Health & Education cess.
sportsmen/ sports association

Payment in respect of deposit

* Resident Indians & Domestic Companies – 10%
194-EE under National Savings Rs 2500 10 10 - 20
* Non Resident – 10% + Cess + Surcharge (If Applicable)
scheme

Payment on account of
Resident Indians & Domestic Companies – 20% Non Resident – 20% + Cess + Surcharge (If
194-F repurchase of unit by Mutual - 20 20 - 20
Applicable)
Fund or Unit Trust of India

Threshold Liit of Rs.15,000 on Coission, etc.,on sale of lotter tickets,the 5%, 5.20%, 5%
Commission on sale of lottery
194-G Rs 15,000 5 5 - 20 and 5.20% will be applicable on resident Indians,Non- Resident Indians, Doestic Copanies,
tickets
and ForeignCompanies respectively.

The Threshold Liit is Rs.15,000 for the Coission or brokerage 5% TDS will be applicable
194-H Commission or brokerage Rs 15,000 5 5 - 20
on resident Indians and doestic copanies respectivel.

RENT * The Threshold Liit of Rs.2,40,000 for Rent on Plant & Machiner and Land Building,
Furniture and Fittings.
194-I(a) Plant & Machinery Rs. 2,40,000 2 2 - 20 * The 2% TDS in case of Rent on Plant & Machiner for resident Indians and Doestic
194-I
Copanies respectivel.
194-I(b) Land or building or * The 10% TDS in case of Rent on Land Building,Furniture and Fittings for resident Indians
Rs. 2,40,000 10 10 - 20
furniture or fitting and Doestic copanies respectivel.

Page 3 of 8 Compiled by CA Jainish R. Parikh

 Rate of TDS applicable for the period
(Individual /Company and others New Rate
%)
Threshold Limit for If No
Section Nature of Payment Remarks
deduction tax Pan or
Individual Company Other Invalid
PAN
(Rate)

Transfer of certain immovable The Threshold Liit is Rs.50,00,000 for the paent on transfer of certain iovable
194-IA property other than Rs 50,00,000 1 1 - 20 propert other than agricultural land 1% applicable on resident Indians and Doestic
agriculture land Copanies respectivel.

Payment of Rent by
The Threshold Liit is Rs.50,000 per onth for the Paent of rent b an individual or HUF
194-IB Individuals or HUF not liable Rs.50,000 per onth 5 - - 20
not liable to tax audit and 5% TDS is applicable on resident Indians.
for Tax Audit

Payment of monetary
194-IC consideration under Joint - 10 10 - 20 -
Development Agreements

The Threshold Liit of Rs.30,000 on An su paid b wa of

Fees for professional or
194-J
technical services:
Cases,
* Wherein, the paee is engaged in the business of the operation of Call Centre onl, 2%
TDS is applicable on resident Indians and Doestic Copanies respectivel.
* Fee for technical services, 2% TDS is applicable on resident Indians and Doestic
Copanies respectivel.
Rs.30,000 10 10 - 20 * Professional roalt where such roalt is in the nature of consideration for sale,
distribution or exhibition of cineatographic fil 10% TDS is applicable on resident Indians
and Doestic Copanies respectivel.
* In case of fees for an other professional services 10% TDS is applicable on resident Indians
and Doestic Copanies respectivel.
* In case the paee fails to furnish PAN 20% TDS is applicable on resident Indians and
Doestic Copanies respectivel.

Page 4 of 8 Compiled by CA Jainish R. Parikh

 Rate of TDS applicable for the period
(Individual /Company and others New Rate
%)
Threshold Limit for If No
Section Nature of Payment Remarks
deduction tax Pan or
Individual Company Other Invalid
PAN
(Rate)

Business trust shall deduct

tax while distributing, any
interest received or receivable
by it from a SPV or any Interest paent fro a SPV and Distribution of dividend b a Business Trust,to Resident unit
194- LBA(1) income received from renting - 10 10 - 20 holders shall be liable for TDS @ 10%. Whereas, in case of Non-Resident paee, TDS on
or leasing or letting out any dividend shall be @ 10% & that on interest paent shall be @ 5%.
real estate asset owned
directly by it, to its unit
holders

Distribution of, any interest The TDS at the rate of 5.20% is applicable on Non- resident Indians and foreign copan in
194- LBA(2) received or receivable from - - - - - the case of business trust shall deduct tax while distributing an interest incoe received or
SPV by Business trust receivable b it fro a SPV to its unit holders

Distribution of, any income

received from renting or
The TDS at the rate of 31.20% and 41.60% is applicable on Non-resident Indians and foreign
194- LBA(3) leasing or letting out any real - - - - -
copan respectivel.
estate asset owned directly by
Business trust

Payment of interest on
The TDS at the rate of 5.20% is applicable on Non- resident Indians and foreign copan in
194-LB infrastructure debt fund to - 5 5 - 20
the case of Paent of interest on infrastructure debt fund.
Non Resident

Page 5 of 8 Compiled by CA Jainish R. Parikh

 Rate of TDS applicable for the period
(Individual /Company and others New Rate
%)
Threshold Limit for If No
Section Nature of Payment Remarks
deduction tax Pan or
Individual Company Other Invalid
PAN
(Rate)

Investment fund paying an

income to a unit holder
The TDS at the rate of 10%, 31.20%, 10%, and 41.60% will be applicable on resident Indians,
194-LBB [other than income which is - 10 10 - 30
Non-Resident Indians, Doestic Copanies and foreign copanies respectivel.
exempt under Section
10(23FBB)]

Income in respect of
investment made in a
The TDS at the rate of 25% ,31.20%,10%,and 41.60% will be applicable on resident Indians,
194-LBC securitization trust (specified - 25 10 - 30
Non- Resident Indians, Doestic Copanies and foreign copanies respectivel.
in Explanation of
section115TCA)

Payment of commission,
brokerage,contractual fee,
professional fee to a resident The threshold Liit of Rs.50,00,000 for paent of coission, brokerage, contractual fee,
194-M person by an Individual or a Rs.50,00,000 5 5 - 20 professional fee to a resident person b an Individual or a HUF who are not liable to deduct
HUF who are not liable to 5% TDS b the resident Indians and Doestic Copanies respectivel.
deduct TDS under section
194C, 194H, or 194J.

* Rs.1,00,00,000/- if no * 2%  in general if cash withdrawn exceeds Rs.1 crore

default is ade on filling
of return * 2%  If assessee has not furnished return for last 3 assessent ears and cash withdrawn
194-N Cash Withdrawal - - - 20 exceeds Rs.20 lakhs but does not exceed Rs. 1 crore
* Rs.20,00,000/- if a
person defaults in filling * 5%  If assessee has not furnished return for last 3 assessent ear and cash withdrawn
of return exceed Rs. 1 crore

Page 6 of 8 Compiled by CA Jainish R. Parikh

 Rate of TDS applicable for the period
(Individual /Company and others New Rate
%)
Threshold Limit for If No
Section Nature of Payment Remarks
deduction tax Pan or
Individual Company Other Invalid
PAN
(Rate)

Applicable for
E-Commerce operator for sale The Threshold Liit is Rs.5,00,000 applicable for E-Coerce operator for sale of goods or
of goods or provision of provision of service facilitated b it through its digital or electronic facilit or platfor. The
194-O Rs.5,00,000 1 1 - 20
service facilitated by it TDS at the rate of 1% will be applicable on resident Indians and Doestic Copanies
through its digital or respectivel.
electronic facility or platform.

Budget Update

Purchase of goods A new section 194Q is proposed to be inserted to provide for deduction of TDS by person
194-Q (applicable Rs 50,00,000 0.1 0.1 - - responsible for paying any sum to any resident for purchase of goods @ 0.1%.
w.e.f 01.07.2021) The Threshold Limit is Rs.50,00,000 applicable when total sales or gross receipts or turnover
from the business carried on exceeds Rs.10 Crores during the financial year immediately
preceding the financial year in which the purchase of goods is carried out.

Page 7 of 8 Compiled by CA Jainish R. Parikh

 Rate of TDS applicable for the period
(Individual /Company and others New Rate
%)
Threshold Limit for If No
Section Nature of Payment Remarks
deduction tax Pan or
Individual Company Other Invalid
PAN
(Rate)

Budget  Update
Relaxation for senior citizen fro filing ITR (Subject to Tax Deduction under Section 194P) [AY
2021-22]
It is proposed to insert a new section 194P to the Act, which proposes to provide relief to
the senior citizens of the age of 75 ears or above fro the copliance of section 139 of the
Act which provides for filing of return of incoe.
TDS on Senior Citizen above A senior citizen of the age of 75 ear or above is not required to file the return of incoe, if
194-P
75 years the following conditions are satisfied –
* The senior citizen is resident in India and of the age of 75 or ore during the previous
ear;
* He has onl pension incoe and a also have interest incoe fro the sae bank
(specified bank – to be notified b the CG) in which he is receiving his pension incoe;
* He shall be required to furnish a declaration to the specified bank.The declaration shall be
containing such particulars,in such for and verified in such anner, as a be prescribed.

The TDS on non-filers of ITR at higher rates.This section shall not apply where the tax is
required to be deducted under sections 192,192A,194B,194BB,194LBC or 194N of the Act.
206-AB TDS on non-filers of ITR The Resident Indian are liable to pay twice the rate specified in the relevant provision of the
Act; or twice the rate or rates in force; or the rate of 5%. It is noteworthy, after considering
cess at the rate of 4% and shall be increased by applicable surcharge.

Page 8 of 8 Compiled by CA Jainish R. Parikh