What is TDS?

Tax Deducted at Source (TDS) is a mechanism that has been introduced by the Income Tax Department. Under this, the responsible person is supposed to deduct a certain percentage of income as tax before making the payment to the receiver. The payment includes salary, commission, processional fees, interest, rent, etc.

For detailed discussion on TDS, please visit: https://www.hostbooks.com/in/blog/tds/complete-guide-tax-deducted-source-tds/

Now, let’s have a look at the TDS Tax Rates

TDS Rate Chart for F.Y. 2019-20 (A.Y : 2020-21)

SectionNature of paymentThresholdIndv./HUFOthers
Rs. TDS Rate (%)
192Salaries-Normal slab rate-
192APremature withdrawal from EPF5000010-
193Interest on securities - 8% Savings (Taxable) Bonds, 2003 or 7.75% Savings (Taxable) Bonds, 2018 during the financial year100001010
193Interest on securities - Interest payable to Individual or HUF, resident in India, on any debenture issued by a company in which the public are substantially interested, if such interest is paid by the company by an account payee cheque50001010
194Dividends25001010
194AInterest (Banking co., co-operative society engaged in banking, post office)400001010
194AInterest (Any other person)50001010
194BWinning from lotteries100003030
194BBWinning from Horse race100003030
194CContractor - Single transaction3000012
194CContractor - During the F.Y.10000012
194CTransporter (44AE) declaration with PAN---
194DInsurance commission (15G-15H allowed)15000510
194DALife insurance policy10000055
194ENon-resident sportsmen or sports association-2020
194EENSS25001010
194FRepurchase units by MFs-2020
194GCommission-Lottery1500055
194HCommission/Brokerage1500055
194IRent of Land and Building - F & F2400001010
194IRent of Plant/Machinery/Equipment24000022
194IBRent by Individual/HUF (wef 01.06.2017)50000 pm5-
194IATransfer of certain immovable property other than agriculture land50 lakh11
194JProfessional Fees/Technical Fees/ etc.300001010
194JPayment to call centre operator (wef 01.06.2017)3000022
194JDirector's fees-1010
194LACompensation on transfer of certain immovable property other than agriculture land2500001010
194LAImmovable property (TDS exempted under RFCTLARR Act wef 01.04.2017)---
194LBIncome by way of interest from infrastructure debt fund (non-resident)-55
194LBAIncome from units of business trust (if recipient is resident in India)-1010
194LBAIncome from units of business trust (if recipient is non-resident)-5 + SC + HEC5 + SC + HEC
194LBADistribution of rental income to unit holders (if recipient is non-resident)-30 + SC + HEC40 + SC + HEC
194LBBIncome in respect of units of investment fund (if payee is resident)-1010
194LBBIncome in respect of units of investment fund (if payee is non-resident)-30 + SC + HEC40 + SC + HEC
194LBCIncome in respect of investment in securitization fund (if payee is resident)-2530
194LBCIncome in respect of investment in securitization fund (if payee is non-resident)-30 + SC + HEC40 + SC + HEC
194LCIncome by way of interest by an Indian specified company to a non-resident/foreign company on foreign currency approved loan / long-term infrastructure bonds from outside India (applicable from July 1, 2012)-5 + SC + HEC5 + SC + HEC
194LDInterest on certain bonds from Govt. securities (from 01.06.2013)-5 + SC + HEC5 + SC + HEC
194MCertain payments by Individual/HUF50 lakh55
194NPayment of certain amount in cash1 Crore-2

TCS Rate Chart for F.Y. 2019-20 (A.Y : 2020-21)

SectionNature of paymentTCS Rate (%)
206CScrap1
206CTendu leaves5
206CTimber obtained under a forest lease or other mode2.5
206CAny other forest produce not being a timber or tendu leave2.5
206CAlcoholic liquor for human consumption 1
206CParking lot, toll plaza, mining and quarrying (other than mining and quarrying of mineral oil, petroleum and natural gas)2
206CMinerals, being coal or lignite or iron ore (applicable from July 1, 2012)1
206CSale of motor vehicle of the value exceeding Rs. 10 Lacs (wef 01.06.2016) Motor vehicle clause not applicable on Central Government, a State Government, an embassy, a High Commission, Legation, Commission, Consulate and the Trade Representation of a foreign State; Local Authority; a Public Sector Company which is engaged in the business of carrying passengers (wef 01.04.2017)1

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