TDS Rates for FY2019-20

TDS Rates for AY2020-21

TDS Rates for AY2020-21

The Government of India presented the Union Financial Budget on 01st February 2020. The budget has introduced certain changes to the existing TDS provision with additional two components and they are, Section 194K – the TDS on Mutual Funds and Section 194O – TDS on E-Commerce Transactions. Also, the Budget still proposes a 2% reduction on Technical Services under Section 194J.

Individual Tax System

The Income Tax System in India differs with different groupings or slabs of taxpayers. The GOI simplifies the tax slabs with calculation options as per Section 115BAC for the taxpayers. The taxpayers can opt for newly introduced sections either Section 115BAC or Section 115BAD as per individuals’ need. As per Finance bill 2020, the taxpayers are divided into three types (if the taxpayer opts for the old method of taxation):

  • The People below 60 years of age, including both the Residents and the Non-residents.
  • Residents aged between 60 and 80 years.
  • Residents aged above 80 years.

The applicable tax rates for the Individuals and HUFs opting under new Section BAC is as follows:

Total Income

Income Tax Rate

Upto Rs.2,50,000NIL
Between Rs.2,50,000 and 5,00,0005%
Between Rs.5,00,000 and 7,50,00010%
Between Rs.7,50,000 and 10,00,00015%
Between Rs.10,00,000 and 12,50,00020%
Between Rs.12,50,000 and 15,00,00025%
Above Rs.15,00,00030%

Under the new tax regime, there will be an additional surcharge and health & education cess will be charged as per below:

Surcharge

  • 10% of Income Tax whose income is above Rs.50 lacs
  • 15% of Income Tax whose income is above Rs.1 crore
  • 25% of Income Tax whose income is above Rs.2 crore
  • 37% of Income Tax whose income is above Rs.5 crore

Health & Educational Cess

4% of (Income Tax + Surcharge)

The following are the exemption and deductions that are not liable for the taxpayer opting for the new Tax Structure.

  • Leave Travel Allowance
  • House Rent Allowance
  • Allowances mentioned in Section 10(14)
  • Expenses made towards of children
  • Any Special Deductions, Standard deductions
  • Professional Tax, Interest payment on the availed housing loan
  • Deduction on 80C, 80D, 80E

For those who opt old tax regime

The applicable tax rates for the Individuals and HUFs opting under the old tax regime and are aged 60 years and below:

Total Income

Income Tax Rate

Upto Rs.2,50,000NIL
Between Rs.2,50,000 and 5,00,0005%
Between Rs.5,00,000 and 10,00,00020%
Above Rs.10,00,00030%

The applicable tax rates for the Individuals and HUFs opting under the old tax regime and are aged between 60 years & 80 years:

Total Income

Income Tax Rate

Upto Rs.3,00,000NIL
Between Rs.3,000,000 and 5,00,0005%
Between Rs.5,00,000 and 10,00,00020%
Above Rs.10,00,00030%

The applicable tax rates for the Individuals and HUFs opting under the old tax regime and are aged above 80 years:

Total Income

Income Tax Rate

Upto Rs.5,00,000NIL
Between Rs.5,00,000 and 10,00,00020%
Above Rs.10,00,00030%

The below-listed surcharge along with Health & Education cess will be charged for all the three categories (those who opt under old tax regime):

Surcharge

  • 10% of Income Tax whose income is above Rs.50 lacs
  • 15% of Income Tax whose income is above Rs.1 crore
  • 25% of Income Tax whose income is above Rs.2 crore
  • 37% of Income Tax whose income is above Rs.5 crore

Health & Educational Cess

4% of (Income Tax + Surcharge)

The below table will provide the details of other applicable TDS rates under various sections of the IT act. The non-submission of PAN or Aadhaar card will be seen severely from now on and the taxpayers may have to pay additionally for not submitting either PAN or Aadhaar. The tax rate for non-submission of PAN or Aadhaar will be pronounced later.

S.No.Details of PaymentsApplicable Section under IT (Sequenced alphabetically)TDS Rates
Individual and HUFNRIsDomestic CompanyNot a Domestic Company
1Salaries by Employers192Slab rateSlab rateNANA
2Premature payment by PF Organization from EPF A/c (i.e. before 5 Years).192A10%10%NANA
3Interest on Securities
a) any debentures or securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act;b) any debentures issued by a company where such debentures are listed on a recognised stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder;

c) any security of the Central or State Government; [i.e. 8% Savings (Taxable) Bonds, 2003 and 7.75% Saving (Taxable) Bonds, 2018]

d) interest on any other security

19310%NA10%NA
4Dividend (w.e.f. 01.04.2020)19410%NA10%NA
5Interest by bank (or  other than securities)194A10%NA10%NA
6Interest by others194A10%NA10%NA
7Prize from Winning from Lotteries, crossword puzzles, card games and other games by any individual194B30%30%30%30%
8Prize from Winning Horse Races by any individual194BB30%30%30%30%
9Payment to contractor/sub-contractor194C1%NA2%NA
10Insurance Commission to agents by Insurance Company194D5%NA10%NA
11Payment in respect of maturity of Life Insurance Policy194DA5%NA5%NA
12Payment to non-resident sportsmen/sports association194ENA20%NA20%
13Pay out from deposit under National Saving Scheme (NSS)194EE10%10%10%NA
14Payment with respect to repurchase of units by Mutual Fund Companies or Unit Trust of India194F20%20%20%NA
15Commission on sale of lottery194G5%5%5%5%
16Commission or Brokerage194H5%NA5%NA
17Rent on land, building, furniture and fittings194I10%NA10%NA
18Rent on plant, machinery or equipments194I2%NA2%NA
19Payment made on account of transfer of immovable property other than agriculture land.194IA1%NA1%NA
20Rent payable by an individual not covered u/s. 194I for land, building, furniture and fittings194IB5%NA5%NA
21Payment of monetary consideration under Joint Development Agreements194IC10%NA10%NA
22Professional Fees other than call centers and Technical Fees194J10%NA10%NA
23Technical Fees (w.e.f. 01.04.2020)194J2%NA10%NA
24Professional services to call centers194J2%NA10%NA
25Royalty194J10%NA10%NA
26Remuneration/fee/commission to a director194J10%NA10%NA
27For not sharing any know-how, patent, copyright etc.194J10%NA10%NA
28Compensation on transfer of certain immoveable property than Agriculture Land194LA10%NA10%NA
29Payment of interest on infrastructure debt fund194LBNA5%NA5%
30Business trust shall deduct tax while distributing, any interest received or receivable by it from a SPV or any income received from renting or leasing or letting out any real estate asset owned directly by it, to its unit holders.194LBA(1)10%NA10%
31Business trust shall deduct tax while distributing any interest income received or receivable by it from a SPV to its unit holders194LBA(2)NA5%NA5%
32Business trust shall deduct tax while distributing any income received from renting or leasing or letting out any real estate asset owned directly by it to its unit holders194LBA(3)NA30%NA40%
33Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)]194LBB10%30%10%40%
34Income in respect of investment made in a securitisation trust (specified in Explanation of Section 115TCA)194LBCNA30%10%40%
35Payment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds (including long-term infrastructure bond)194LCNA5%NA5%
36Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor194LDNA5%NA5%
37Any income in respect of:
a) Units of a Mutual Fund as per Section 10(23D)
b) The Units from the administrator
c) Units from specified company (w.e.f. 01.04.2020)
194KNANA10%NA
38Payment of commission (not being insurance commission), brokerage, contractual fee, professional fee to a resident individual by another individual or a HUF who are not liable to deduct TDS under section 194C, 194H, or 194J.194M5%NA5%NA
39Cash withdrawal in excess of Rs. 1 crore during the previous year from one or more account maintained by an individual with a banking company, co-operative society engaged in business of banking or a post office194N2%NA2%NA
40E-Commerce operator for sale of goods or provision of service facilitated by it through its digital or electronic facility or platform.194O1%NA1%NA
41Payment of any other sum to a Non-resident195NANA
a) Income from investment made by a NRI Citizen2010
b) Income from long-term capital gains referred to in Section 115E by NRI Citizen1010
c) Income from long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-Section (1) of Section 1121015
d) Income from long-term capital gains as referred to in Section 112A1020
e) Income from short-term capital gains referred to in Section 111A1520
f) Any other income from long-term capital gains [not being long-term capital gains referred to in clauses 10(33), 10(36) and 112A2010
g) Income from interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC)2050
h) Income from royalty payable by Government or an Indian concern with an agreement which could be license, copyright, or computer software to a person resident in India1010
i) Income from royalty [not similar to point g] payable by Government or any Indian concern with an agreement by an Indian concern which is approved by the Central Government and relates with industrial policy1050
j) Income from the fees for technical services payable by Government or any Indian concern with an agreement by an Indian concern which is approved by the Central Government and relates with industrial policy3010
42Income from units (including long-term capital gain on transfer of such units) to an offshore fund196BNA10%NA10%
43Income from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR)196CNA10%NA10%
44Income of foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities)196DNA20%NA20%

 

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