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.2,50,000 | NIL |
| Between Rs.2,50,000 and 5,00,000 | 5% |
| Between Rs.5,00,000 and 7,50,000 | 10% |
| Between Rs.7,50,000 and 10,00,000 | 15% |
| Between Rs.10,00,000 and 12,50,000 | 20% |
| Between Rs.12,50,000 and 15,00,000 | 25% |
| Above Rs.15,00,000 | 30% |
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.2,50,000 | NIL |
| Between Rs.2,50,000 and 5,00,000 | 5% |
| Between Rs.5,00,000 and 10,00,000 | 20% |
| Above Rs.10,00,000 | 30% |
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.3,00,000 | NIL |
| Between Rs.3,000,000 and 5,00,000 | 5% |
| Between Rs.5,00,000 and 10,00,000 | 20% |
| Above Rs.10,00,000 | 30% |
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.5,00,000 | NIL |
| Between Rs.5,00,000 and 10,00,000 | 20% |
| Above Rs.10,00,000 | 30% |
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 Payments | Applicable Section under IT (Sequenced alphabetically) | TDS Rates | |||
| Individual and HUF | NRIs | Domestic Company | Not a Domestic Company | |||
| 1 | Salaries by Employers | 192 | Slab rate | Slab rate | NA | NA |
| 2 | Premature payment by PF Organization from EPF A/c (i.e. before 5 Years). | 192A | 10% | 10% | NA | NA |
| 3 | Interest 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 |
193 | 10% | NA | 10% | NA |
| 4 | Dividend (w.e.f. 01.04.2020) | 194 | 10% | NA | 10% | NA |
| 5 | Interest by bank (or other than securities) | 194A | 10% | NA | 10% | NA |
| 6 | Interest by others | 194A | 10% | NA | 10% | NA |
| 7 | Prize from Winning from Lotteries, crossword puzzles, card games and other games by any individual | 194B | 30% | 30% | 30% | 30% |
| 8 | Prize from Winning Horse Races by any individual | 194BB | 30% | 30% | 30% | 30% |
| 9 | Payment to contractor/sub-contractor | 194C | 1% | NA | 2% | NA |
| 10 | Insurance Commission to agents by Insurance Company | 194D | 5% | NA | 10% | NA |
| 11 | Payment in respect of maturity of Life Insurance Policy | 194DA | 5% | NA | 5% | NA |
| 12 | Payment to non-resident sportsmen/sports association | 194E | NA | 20% | NA | 20% |
| 13 | Pay out from deposit under National Saving Scheme (NSS) | 194EE | 10% | 10% | 10% | NA |
| 14 | Payment with respect to repurchase of units by Mutual Fund Companies or Unit Trust of India | 194F | 20% | 20% | 20% | NA |
| 15 | Commission on sale of lottery | 194G | 5% | 5% | 5% | 5% |
| 16 | Commission or Brokerage | 194H | 5% | NA | 5% | NA |
| 17 | Rent on land, building, furniture and fittings | 194I | 10% | NA | 10% | NA |
| 18 | Rent on plant, machinery or equipments | 194I | 2% | NA | 2% | NA |
| 19 | Payment made on account of transfer of immovable property other than agriculture land. | 194IA | 1% | NA | 1% | NA |
| 20 | Rent payable by an individual not covered u/s. 194I for land, building, furniture and fittings | 194IB | 5% | NA | 5% | NA |
| 21 | Payment of monetary consideration under Joint Development Agreements | 194IC | 10% | NA | 10% | NA |
| 22 | Professional Fees other than call centers and Technical Fees | 194J | 10% | NA | 10% | NA |
| 23 | Technical Fees (w.e.f. 01.04.2020) | 194J | 2% | NA | 10% | NA |
| 24 | Professional services to call centers | 194J | 2% | NA | 10% | NA |
| 25 | Royalty | 194J | 10% | NA | 10% | NA |
| 26 | Remuneration/fee/commission to a director | 194J | 10% | NA | 10% | NA |
| 27 | For not sharing any know-how, patent, copyright etc. | 194J | 10% | NA | 10% | NA |
| 28 | Compensation on transfer of certain immoveable property than Agriculture Land | 194LA | 10% | NA | 10% | NA |
| 29 | Payment of interest on infrastructure debt fund | 194LB | NA | 5% | NA | 5% |
| 30 | Business 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% | NA | 10% | |
| 31 | Business trust shall deduct tax while distributing any interest income received or receivable by it from a SPV to its unit holders | 194LBA(2) | NA | 5% | NA | 5% |
| 32 | Business 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 holders | 194LBA(3) | NA | 30% | NA | 40% |
| 33 | Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)] | 194LBB | 10% | 30% | 10% | 40% |
| 34 | Income in respect of investment made in a securitisation trust (specified in Explanation of Section 115TCA) | 194LBC | NA | 30% | 10% | 40% |
| 35 | Payment 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) | 194LC | NA | 5% | NA | 5% |
| 36 | Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor | 194LD | NA | 5% | NA | 5% |
| 37 | Any 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) |
194K | NA | NA | 10% | NA |
| 38 | Payment 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. | 194M | 5% | NA | 5% | NA |
| 39 | Cash 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 office | 194N | 2% | NA | 2% | NA |
| 40 | E-Commerce operator for sale of goods or provision of service facilitated by it through its digital or electronic facility or platform. | 194O | 1% | NA | 1% | NA |
| 41 | Payment of any other sum to a Non-resident | 195 | NA | NA | ||
| a) Income from investment made by a NRI Citizen | 20 | 10 | ||||
| b) Income from long-term capital gains referred to in Section 115E by NRI Citizen | 10 | 10 | ||||
| c) Income from long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-Section (1) of Section 112 | 10 | 15 | ||||
| d) Income from long-term capital gains as referred to in Section 112A | 10 | 20 | ||||
| e) Income from short-term capital gains referred to in Section 111A | 15 | 20 | ||||
| f) Any other income from long-term capital gains [not being long-term capital gains referred to in clauses 10(33), 10(36) and 112A | 20 | 10 | ||||
| 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) | 20 | 50 | ||||
| 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 India | 10 | 10 | ||||
| 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 policy | 10 | 50 | ||||
| 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 policy | 30 | 10 | ||||
| 42 | Income from units (including long-term capital gain on transfer of such units) to an offshore fund | 196B | NA | 10% | NA | 10% |
| 43 | Income from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR) | 196C | NA | 10% | NA | 10% |
| 44 | Income of foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities) | 196D | NA | 20% | NA | 20% |
