TDS Rates for the Financial Year 2021-2022

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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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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.