TDS Rates for the Financial Year 2021-2022
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% | – | – | |
