TDS Rates/TDS Rate Chart: Every year millions of people tend to search the internet for new TDS rates /TDS Rate Chart applicable in India for the current financial year. This shows that people are no longer concerned with the income tax slabs only, they are even aware of the applicable TDS rates for various income tax sections.
Regular changes are being taken place both in TDS rates and income tax laws as well. Therefore it is very much important for you especially if you are engaged with finance-related jobs to get updated with each type of TDS laws for payment where TDS is applicable.
It is very much crucial for everyone to keep in mind that due to the COVID 19 Pandemic, the Government reduced TDS rates by 25% for each TDS section up to 31.03.2021. Therefore from 1st April 2021 again the TDS rates will be fully operationalised as per the below TDS Rate Chart FY 2021-22.
This post will help you in knowing the latest TDS rates FY 2021-22 and AY 2022-23. You will find a synopsis of the latest TDS Rate Chart for FY 2021-22 along with a little analysis for easy understanding.
TDS Rate Chart FY 2021-22 and AY 2022-23
|Sl. No.||Nature of Payment||Section||Annual Threshold Limit|
|TDS Rates FY 2021-22 (Individual/ HUF)||TDS Rates |
|1||Payment of Salaries(Old and New Slab)||192||Slab rate||No TDS Rates. Slab rate is applicable||N.A|
|2||Premature withdrawal from EPF A/C before 5 Years completion time as the subscriber.||192A||₹50,000||10%||N.A|
|3||Payment of Interest on Securities by company.||193||₹2,500- For Int. on Securities.|
₹10,000-For GOI Taxable Bonds
|4||Payment of Dividend on which Dividend Distribution Tax(DDT) is not paid. This excludes dividend as referred to Section 115O by a Company.||194||₹2,500||10%||10%|
|5||Payment of Interest by Bank to Non-Sr. Citizen(below 60 Years of age)||194A||₹40,000||10%||N.A|
|5A||Payment of Interest by Bank to Sr. Citizen||194A||₹50,000||10%||N.A|
|6||Winning from Lotteries by a person.||194B||₹10,000||30%||30%|
|7||Winning from Horse Race by a person.||194BB||₹10,000||30%||30%|
|8||Payment to Contractors (Non-Company deductee).||194C||₹30,000 in a single bill or ₹1 Lakh aggregate bills|
during the year
|9||Payment to Contractors (Company deductee).||194C||₹30,000 in a single bill or ₹1 Lakh aggregate bills|
during the year
|10||Payment to Transporter not covered U/S 44AE where the Transporter owns more than 10 goods carriages.||194C||₹30,000 in a single bill or ₹75,000 aggregate bills|
during the year
|11||Payment of Insurance Commission to agents by Insurance Company.||194D||₹15,000||5%||10%|
|12||Payment in respect of maturity of Life Insurance Policy by Life|
|13||Payment to NRI sportsman or association by any person or organization.||194E||No Limit||20%||20%|
|14||Payment out of deposit under National Saving Scheme (NSS).||194EE||₹2,500||10%||10%|
|15||Payment for the repurchase of units by Mutual Fund Companies.||194F||No Limit||20%||20%|
|16||Payment of Lottery Commission.||194G||₹15,000||5%||5%|
|17||Payment of commission or Brokerage.||194H||₹15,000||5%||5%|
|18||Payment for rent on Plant and Machinery.||194I(a)||₹2,40,000||2%||2%|
|19||Payment for rent on Land, Building, Furniture and Fittings.||194I(b)||₹2,40,000||10%||10%|
|20||Payment made on account of transfer|
of immovable property
other than agriculture land.
|21||Payment of Rent by Individuals or HUF not liable to Tax Audit and such rent is not covered U/S 194I.||194IB||₹50,000(P.M)||5%||N.A|
|22||Payment of Professional Fees(other than call centres).||194J||₹30,000||10%||10%|
|23||Payment of Professional Fees to call centres.||194J||₹30,000||2%||2%|
|24||TDS on compensation for compulsory acquisition of immovable property other than agricultural land.||194LA||₹2,50,000||10%||10%|
From the above TDS Rate Chart FY 2021-22 you can see that in India the applicable minimum TDS rate is 1% and the maximum TDS rate is 30%. For all the cases where PAN is not available of the deductee or invalid PAN is submitted, the applicable TDS rate will be 20%.
If the applicable TDS rate is 30%, in that case for non-submission of PAN, the applicable TDS rate will be 30% too.
1. Section 192-TDS Rates on Salary Income:
There are no fixed TDS rates for income from salary. TDS is deducted only when yearly tax liability exceeds ₹10,000/-. Therefore tax is deducted accordingly and no fixed rate of TDS is there. However, the tax liability will be deducted on the basis of the Old and New Tax Regime as declared by the employee.
2. Section 192A-TDS Rates FY 2021-22 on premature withdrawal from EPF
If an employee wishes to withdraw more than ₹50,000/- from his accumulated EPF balance before completion of 5 years prematurely, this withdrawal is liable to TDS @10%.
This 5 years period would be considered from the date of joining of the EPF till placement of withdrawal request. However, in case the subscribe fails to submit his PAN details, TDS will be deducted @20% on the total amount withdrawn.
3. Section 193- TDS Rates on Payment of Interest on Securities
TDS @10% is to be deducted for the payment of interest on securities by a company to a resident only when the interest payment exceeds ₹2,500 per year w.e.f 01.04.2021. However, this threshold limit will be ₹5,000 for interest paid on debentures. The threshold limit for interest on 7.75% GOI Savings (Taxable) Bonds 2018 is ₹10,000.
4. Section 194-TDS Rates on payment of Dividend
As per Section 194, TDS @10% is to be deducted for the payment of Dividend by a Company to a resident individual/HUF, if such dividend payment exceeds ₹5,000 in a year and on which Dividend Distribution Tax(DDT) is not paid. This excludes dividend as referred to Section 115O by a Company.
5. Section 194A- TDS Rates on payment of Interest by Bank to Non-Sr. Citizen
As per Section 194A, TDS @10% has to be deducted for the payment of interest to resident Indians below 60 years of age(Non-Sr. Citizen), if such interest income exceeds ₹40,000 in a year. This interest income includes interest from savings accounts only. Other interest income from Fixed Deposits, Time Deposits and Company FDs are taxable as the applicable tax slabs.
5A. Section 194A- TDS Rates FY 2021-22 on payment of Interest by Bank to Sr. Citizen
As per Section 194A, TDS @10% has to be deducted for the payment of interest to resident Sr. Citizen, if such interest income exceeds ₹50,000 in a year. This interest income includes all the interest income earned by the Sr. Citizens except interest income from Company Deposits.
Therefore, the interest income for Sr. Citizens is not limited to savings accounts interests only unlike Non- Sr. Citizens.
6. Section 194B- TDS Rates FY 2021-22 on Winning from Lottery
As per Section 194B, TDS @30% is to be deducted from a resident Indian on any income such as winning from lottery, card games, crossword puzzles, and other alike games if such income exceeds ₹10,000 in a year.
7. Section 194BB- TDS Rates on Winning from Horse Races
As per Section 194BB, TDS @30% is to be deducted from a resident Indian on income from winning from horse races if such income exceeds ₹10,000 in a year.
8. Section 194C- TDS Rates on Payment to Contractors (Non-Company deductee)
As per Section 194C, TDS @1% is to be deducted for making any payment to a contractor(Non-company deductee such as Individual/HUF) only if the payment exceeds ₹30,000 in a single bill or ₹1 Lakh in aggregate bills during the year.
9. Section 194C- TDS Rates on Payment to Contractors (Company deductee)
As per Section 194C, TDS @2% is to be deducted for making any payment to a contractor(Company deductee such as Company, A.O.P, B.O.I) only if the payment exceeds ₹30,000 in a single bill or ₹1 Lakh in aggregate bills during the year.
10. Section 194C- TDS Rates FY 2021-22 on Payment to Transporter
TDS @1% is to be deducted on Payment to Transporter not covered U/S 44AE, only if the payment exceeds ₹30,000 in a single bill or ₹75,000 in aggregate bills during the year, where the Transporter owns more than 10 goods carriages. TDS rate will be @2% if the payee is a Company. However, no TDS should be deducted if the payee owns less than 10 goods carriages.
11. Section 194D- TDS on payment of insurance commission to agents by an insurance company
As per Section 194D, TDS @5% is to be deducted by an insurance company on payment of insurance commission to its agents only if such commission payment exceeds ₹15,000 in a year.
12. Section 194DA- TDS on payment of maturity of Life Insurance Policy
section 194DA is applicable to those life insurance policies where such payments are not exempted Under Section 10(10D). This is not applicable for the deferred pension plans as well.
Therefore, in simple words, Section 194DA is not applicable where any amount is received U/S 10(10D), which is completely tax-free. So, one has to keep in mind the following important aspect:
- maturity proceeds from a life insurance policy after the maturity and;
- death benefits received after the demise of the policy-holder, by his nominees;
- The annual premium is not more than 10% of the sum assured for the policy taken on or after 01.04.2012 or is not more than 20% for a policy taken before 01.04.2012.
Therefore, in the case of other receipts from the insurance company, as per Section 194DA, TDS @5% is to be deducted when such payment exceeds ₹1,00,000 in a year.
13. Section 194E- TDS Rates on payment to NRI Sportsman/Association
TDS @20% is to be deducted for making any payment(no threshold limit) to a Non-resident Sportsman or association or organisation by any person or organisation. Since this is a payment to NRI, this TDS rate must include applicable surcharge and Health and Education cess.
14. Section 194EE-TDS Rates on Payment in respect of deposit under National Savings Scheme
TDS @10% is to be deducted for making any payment under the National Savings Scheme, standing to the credit of the person only when such payment exceeds ₹2,500 in a year.
15. Section 194F-TDS Rates for repurchase of units by Mutual Fund or Unit Trust of India
In this case, TDS @20% is to be deducted for the repurchase of units by Mutual Fund or Unit Trust of India. There is no threshold limit under this section.
16. Section 194G-TDS Rates on commission on sale of lottery tickets
AS per section 194G, TDS @5% is to be deducted for making any payments to resident Indians on account of commission on the sale of lottery tickets, if such payment exceeds ₹15,000.
17. Section 194H-TDS Rates on payment of commission or brokerage
AS per section 194H, TDS @5% is to be deducted for making any payments to resident Indians on account of commission or brokerage, if such payment exceeds ₹15,000.
18. Section 194I(a)-TDS Rates on payment for rent on Plant and Machinery.
As per Section 194I(a), TDS @2% is to be deducted for making any payment on account of rent on Plant & Machinery to a resident person only if such rent exceeds ₹2,40,000 in a year.
19. Section 194I(b)-TDS Rates on payment for rent on Land, Building, Furniture and Fittings.
As per Section 194I(b), TDS @10% is to be deducted for making any payment on account of rent on Land and Building, Furniture and Fittings to a resident person only if such rent exceeds ₹2,40,000 in a year.
20. Section 194IA-TDS Rates on payment for the transfer of immovable properties
As per Section 194IA, TDS @1% is to be deducted for making any payment to a resident on account of transfer of any immovable properties other than agricultural land, if such payment exceeds ₹50,00,000 in a year. For example, if the payment is ₹61 Lakh, tax is to be deducted on the entire ₹61 Lakh and not on the ₹11 Lakh only.
21. Section 194IB-TDS Rates FY 201-22 on payment of Rent by Individuals or HUF not liable to Tax Audit
As per Section 194IB, TDS @5% is to be deducted for making any payments for Rent such as lease, tenancy, sub-lease or other arrangements for properties by Individuals or HUF if such rent payment exceeds ₹50,000 per month. This rent payment should not be covered U/S 194I(b).
22. Section 194J-TDS Rates on payment of professional or technical fees(Other than call-centres)
As per Section 194J, TDS@10% is to be deducted for making any payments for any professional and technical services if such payment exceeds ₹30,000 in a year.
23. Section 194J-TDS Rates on payment of technical fees(call-centres)
As per Section 194J, TDS@2% is to be deducted if any payment is made on account of technical fees to a person engaged in the business of a call centre, only if such payment exceeds ₹30,000 in a year.
24. Section 194LA-TDS on compensation for acquisition of immovable property
As per Section 194LA, TDS@10% is to be deducted for the payment of compensation for compulsory acquisition of immovable property other than agricultural land and if such compensation exceeds ₹2,50,000 in a year.