TDS & TCS Rate Chart

TDS and TCS Rate Chart 2020

TDS and TCS Rate Chart 2020

With a view to decrease the financial distress on account of COVID-19 and to further increase the liquidity, the Government on 13th May 2020 announced various relief measures. One such measures is the reduction of TDS and TCS rates by 25% on non-salaried payments is one such relief.  Thus the following is the TDS and TCS rate chart for 2020, covering the provisions to which the rate reduction is applicable. 

2020 Tax Deduction at Source (TDS) Rate Chart

Particulars TDS rates applicable from 1st April 2020 to 13th May 2020 TDS rates applicable from 14th May 2020 to 31st March 2021
Section 193 – Interest on Securities 10% 7.5%
Section 194 – Dividend 10% 7.5%
Section 194A – Interest other than interest on securities (eg. fixed deposits, interest)  10% 7.5%
Section 194C – Payment to Contractors

1%

(when deductee is an individual / HUF) 

0.75%

(when deductee is an individual / HUF)

2%

(in any other case)

1.50%

(in any other case)

Section 194D – Insurance Commission 5% 3.75%
Section 194DA –Life Insurance Policy  5% 3.75%
Section 194EE – Payment in respect of deposits under the National Savings Scheme 10% 7.5%
Section 194F – Payment in respect of repurchase of Units of Mutual Funds / UTI 20% 15%
Section 194G – Commission, price etc. on sale of the lottery tickets 5% 3.75%
Section 194H – Commission / brokerage 5% 3.75%
Section 194-I(a) – Rent pertaining to hiring of plant and machinery 2% 1.50%
Section 194-I(b) – Rent pertaining to hiring of an immovable property 10% 7.50%
Section 194-IA – Payment towards acquisition of immovable property 1% 0.75%
Section 194-IB – Payment of rent by certain individual / HUF 5% 3.75%
Section 194-IC – Payment towards Joint Development Agreements 10% 7.50%
Section 194J – Royalty payable towards sale, distribution or exhibition of cinematographic films  2% 1.50%
Section 194J – Amount payable towards fees for technical services (other than the professional services) 2% 1.50%
Section 194J – Payment to call center operator 2% 1.50%
Section 194J – In all other cases (other than above) 10% 7.50%
Section 194K – Payment of dividend by the Mutual Funds 10% 7.50%
Section 194LA – Payment of compensation on transfer of certain immovable property 10% 7.50%
Section 194LBA – Income from units of the Business Trust 10% 7.50%
Section 194LBB – Income in respect of units of investment fund 10% 7.50%
Section 194LBC – Income by Securitization trust

25% 

(in case of individual or HUF) 

18.75%

(in case of individual or HUF)

30% 

(in any other case)

22.50%

(in any other case)

Section 194M – Payment towards Commission agent or brokerage, etc. by individual and HUF 5% 3.75%

Section 194-O – TDS on E-commerce participants 

(provisions are going to be effective from 1st October 2020)

_ 0.75%

2020 Tax Collection at Source (TCS) Rate Chart

Particulars TCS rates applicable from 1st April 2020 to 13th May 2020 TCS rates applicable from 14th May 2020 to 31st March 2021
Section 206C(1) – Sale of Tendu Leaves 5% 3.75%
Section 206C(1) – Sale of timber obtained under forest lease 2.50% 1.88%
Section 206C(1) – Sale of timber obtained by any other mode 2.50% 1.88%
Section 206C(1) – Sale of any other forest produce (other than timber and tendu leaves) 2.50% 1.88%
Section 206C(1) – Sale of scrap 1% 0.75%
Secction 206C(1) – Sale of Minerals being coal or iron ore or lignite 1% 0.75%
Section 206C(1C) – Toll plaza, parking lot and mining and quarrying (other than mining and quarrying of mineral oil, natural gas, and petroleum) 2% 1.50%
Section 206C(1F) – Sale of motor vehicle above INR 10 Lakhs 1% 0.75%

Section 206C(1H) – Sale of goods exceeding INR 50 Lakhs

(provisions are going to be effective from 1st October 2020)

_ 0.075%

 

Post by poonamgandhi

CA Poonam Gandhi is a Chartered Accountant and a Lawyer. With a wide practice experience and deep understanding of different laws and taxes, she has been an independent professional writer in the field of taxation, finance and laws.