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.2,50,000 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%

 

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