Tds Rates For The Financial Year 2021 2022

The present article covers the TDS rates as applicable for the Financial Year 2021-2022 (Assessment Year 2022-2023) including budget 2021 amendments.

Tds Rates For The Financial Year 2021 2022-

The following table covers the

TDS rates (along with applicable higher rates in case of no/ invalid PAN) as applicable during the Financial Year 2021-2022-

Section	Nature of payment	Threshold limit beyond which TDS deductible	Rate of TDS	Comments (if any)
Normal case	In case there is no or invalid PAN
192	Salary	As per the applicable slab	Slab rates	30%	-
192A	Premature withdrawal from accumulated provident fund balance taxable in the employee’s hands.	INR 50,000	10%	20%	-
193	Interest on Securities	Interest on debentures – INR 5,000 Interest on 7.75% GOI saving bonds – INR 10,000 Others – INR 2,500	10%	20%	-
194	Dividend (other than referred under section 115-O)	INR 5,000	10%	20%	As per budget 2021, TDS on dividend doesn’t apply to dividend income credited/ paid to a business trust by a special purpose vehicle or the dividend paid to any notified person.
194A	Interest other than ‘Interest on Securities’	In case of senior citizen – INR 50,000 In any other case – INR 40,000	10%	20%	-
194B	Winnings from lottery; card game; crossword puzzle and any other games	INR 10,000	30%	30%	-
194BB	Winning from horse race	INR 10,000	30%	30%	-
194C	Payments to contractors	Single payment – INR 30,000 Aggregate payment – INR 1,00,000	Individual – 1% HUF – 1% Others – 2%	20%	-
194D	Insurance commission	INR 15,000	Individual – 5% Company – 10%	20%	-
194DA	Payment towards life insurance policy, TDS is deducted on the amount of income contained in insurance pay-out.	INR 1,00,000	5%	20%	-
194E	Payments to non-resident sportsmen or non-resident sports association	NIL	20% + applicable surcharge and Health & Education Cess	20% + applicable surcharge and Health & Education Cess	-
194EE	Payment about deposit under National Savings Scheme	INR 2,500	10%	20%	-
194F	Payment about the repurchase of the unit by Mutual Fund or Unit Trust of India	NIL	20%	20%	-
194G	Commission on sale of lottery tickets	INR 15,000	5%	20%	-
194H	Commission/ brokerage	INR 15,000	5%	20%	-
194I (a)	Rent – Plant & Machinery	INR 2,40,000	2%	20%	-
194I (b)	Rent – Land or building or fitting or furniture	INR 2,40,000	10%	20%	-
194IA	Transfer of certain immovable property (other than agricultural land)	INR 50,00,000	1%	20%	-
194IB	Payment of rent by Individuals/ HUF not liable for tax audit	INR 50,000 per month	5%	20%	-
194IC	Payment of monetary consideration under JDA (Joint Development Agreements)	NIL	10%	20%	-
194J	Fees for technical or professional services when the recipient is engaged only in the business operations of Call Centre	INR 30,000	2%	20%	-
194J	Fees for technical services	INR 30,000	2%	20%	-
194J	Fees for professional royalty in nature of consideration for sale or distribution or exhibition of cinematographic film	INR 30,000	10%	20%	-
194J	Fees for technical or professional services in any other case	INR 30,000	10%	20%	-
194K	Income in respect of- · Units of mutual funds specified under section 10(23D); · Units from specified undertakings of the administrator; or · Units of the specified company.	NIL	10%	20%	-
194LA	Compensation towards the compulsory acquisition of immovable property	INR 2,50,000	10%	20%	-
194LB	Interest relating to infrastructure debt fund to Non-Resident	NIL	5% + applicable surcharge and Health & Education Cess	20% + applicable surcharge and Health & Education Cess	-
194LBA (1)	Interest/ dividend income received by the business trust or income of rent/ lease/ let out of the real estate asset owned by the business trust	NIL	10%	20%	-
194LBA (2)	Interest received/ receivable by business trust (being a non-resident or foreign company) from special purpose vehicle	NIL	5% in case of interest and 10% in case of dividend	-	-
194LBA (3)	Income from renting/ leasing/ letting out any of the real estate assets owned by the business trust (being a non-resident or foreign company)	NIL	TDS deductible at the rate in force.	-	-
194LBB	Income from units of investment fund [other than income exempt u/s 10(23FBB)]	NIL	10%	30%	-
194LBC	Income from investment in a securitization trust	NIL	Individual/ HUF – 25% Others – 30%	30%	-
194M	Payment of commission; brokerage; professional fee; contractual fee to a resident person either by Individual or HUF (who are not liable to deduct TDS u/s 194C or 194H or 194J	INR 50,00,000	5%	20%	-
194N	Cash withdrawal over INR 1 Crore	INR 1 Crore	2%	20%	-
Cash withdrawal over INR 20 Lakhs only when the person has not filed ITR for the preceding three previous years	Amount withdrawn in cash exceeds INR 20 Lakhs	2%	20%	-
Amount withdrawn in cash exceeds INR 1 Crore	5%	20%	-
194O	Payment of sum by an e-commerce operator to an e-commerce participant	INR 5,00,000	1%	20%
194Q	Payment of amount to the resident person towards the purchase of goods (applicable from 1st July 2021)	INR 50,00,000	0.10%	-	-
194P	TDS deduction on specified senior citizens (applicable from AY 2021-2022)	NIL	Specified senior citizens will not be required to comply with the ITR filing provisions.	Specified senior citizens mean- · An individual of age 75 years or above; · Such person should have only pension income and specified interest income; · A specified declaration is furnished by such person to specified banks.
195 (payment to a non-resident)	Income from the investment made by NRI	NIL	20.80%	-	-
Income from LTCG (Long Term Capital Gain) as per section 115E for an NRI	NIL	10.40%	-	-
Income from LTCG (Long Term Capital Gain) as per section 112(1)(c)(iii) and section 112A	NIL	10.40%	-	-
Income from STCG (Short Term Capital Gain) as per section 111A	NIL	15.60%	-	-
Any other form of LTCG	NIL	20.80%	-	-
Interest income on money borrowed in foreign currency	NIL	20.80%	-	-
Income towards fees from technical services payable the Government/ Indian concern	NIL	10.40%	-	-
Any other source of income	NIL	31.20%	-	-

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Frequently Asked Questions

Common questions about TDS Rates FY 2021.

TDS stands for Tax Deducted at Source. It is a method of collecting income tax from the very source of income. The government mandates certain entities to deduct tax at the prescribed rates before making certain payments. This ensures timely collection of taxes and prevents tax evasion.

Any person or entity making specified payments is required to deduct TDS at the applicable rates. This includes employers paying salaries, banks paying interest, companies paying dividends or professional fees, and individuals making rent payments above the threshold limit.

The article provides the threshold limits beyond which TDS needs to be deducted for various types of payments like salary, interest, dividends, rent, professional fees, etc. These limits vary based on the nature of payment and the recipient's status (individual, HUF, company, etc.).

Yes, the TDS rates differ for resident and non-resident recipients in certain cases. For example, the TDS rate for fees for technical services paid to a non-resident is 10.4%, while it is 10% for a resident recipient if the payment exceeds Rs. 30,000.

The TDS rate for salary income is as per the applicable income tax slab rates. If the employee does not have or has an invalid PAN, the TDS rate is a flat 30%.

Yes, TDS is deducted on interest earned from bank deposits (other than interest on securities) at the rate of 10% if the interest exceeds the threshold limit of Rs. 40,000 for non-senior citizens and Rs. 50,000 for senior citizens.

The TDS rate for rent payments depends on the nature of the rented asset. For rent payments for plant and machinery, the TDS rate is 2% if the payment exceeds Rs. 2,40,000. For rent payments for land, building, furniture, etc., the TDS rate is 10% if the payment exceeds Rs. 2,40,000.

Yes, TDS is deducted at a flat rate of 30% on winnings from lottery, horse races, card games, crossword puzzles, and other games if the winning amount exceeds Rs. 10,000.

The TDS rate for professional fees, commission, brokerage, or contractual fees paid to a resident is 10% if the payment exceeds Rs. 30,000. For individuals or HUFs not liable for tax audit, the TDS rate is 5% if the payment exceeds Rs. 50,00,000.

Yes, TDS is deducted at the rate of 2% if the cash withdrawal exceeds Rs. 1 crore in a financial year. Additionally, TDS at the rate of 2% or 5% is deducted if the cash withdrawal exceeds Rs. 20 lakhs or Rs. 1 crore, respectively, and the person has not filed income tax returns for the preceding three years.