Through below TDS rate chart we have tried to explain TDS rates which are applicable for financial year 2020-21. Below table provides simplified view of all the payments where TDS is applicable on payment made to resident.
| S. No | Section | Nature of Payment | Deductor | Deductee | Threshold Limit in INR | Existing Rate | Revised Rate* |
| 1 | 192 | Salary including perquisites, allowances etc | Any Employer | Any Employee | Taxable income for year > INR 5 Lakh | As per slab rate | As per slab rate |
| 2 | 192A | Payment from EPF Organisation | PF trust or EPF organisation | Any Employee | 50000 each withdrawal | 10% | 7.50% |
| 3 | 193 | Interest on Securities | Anyone | Anyone | 5000 for debenture & 1000 for special bonds | 10% | 7.50% |
| 4 | 194 | Dividend other than u/s 115O (Deemed Dividend) | Company | Share Holder | 25,000 | 10% | 7.50% |
| 5 | 194A | Interest other than interest on securities | Banks | Anyone other than senior citizen | 40,000 | 10% | 7.50% |
| 6 | 194A | Interest other than interest on securities | Banks | Senior citizen | 50,000 | 10% | 7.50% |
| 7 | 194A | Interest other than interest on securities | Anyone (other than Individual or HUF who are not liable for tax audit or banks ) | Anyone | 5,000 | 10% | 7.50% |
| 8 | 194B | Winnings from lottery or crossword puzzle | Anyone | Anyone | 10,000 | 30% | 30% |
| 9 | 194BB | Winnings from horse race | Anyone | Anyone | 10,000 | 30% | 30% |
| 10 | 194C | Payment to contractors & sub-contractors | Anyone including Individual or HUF who are liable for tax audit | Individual or HUF | 30,000 (Single bill) or 1 Lakh aggregate | 1% | 0.75% |
| 11 | 194C | Payment to contractors and sub-contractors | Anyone including Individual or HUF who are liable for tax audit | Anyone other than Individual or HUF | 30,000 (Single bill) or 1 Lakh aggregate | 2% | 1.50% |
| 12 | 194C | Payment to Transporter Covered u/s. 44E and submit declaration in prescribed format. (i.e. owning less than 10 goods carriages) | Anyone including Individual or HUF who are liable for tax audit | Anyone | Not applicable | Nil | Nil |
| 13 | 194C | Payment to Transporter not covered u/s. 44E (i.e. owning more than 10 goods carriages) | Anyone including Individual or HUF who are liable for tax audit | Individual or HUF | 30,000 (Single bill) or 1 Lakh aggregate bills during the year | 1% | 0.75% |
| 14 | 194C | Payment to Transporter not covered u/s. 44E (i.e. owning more than 10 goods carriages) | Anyone including Individual or HUF who are liable for tax audit | Anyone other than Individual or HUF | 30,000 (Single bill) or 1 Lakh aggregate bills during the year | 2% | 1.50% |
| 15 | 194D | Payment of Insurance Commission | Insurance Company | Insurance Agent | 15,000 | 5% | 3.75% |
| 16 | 194DA | Payment in respect of life insurance policy | Insurance Company | Anyone (Policy Holder or Nominee) | 1,00,000 | 5% | 3.75% |
| 17 | 194EE | Payments in respect of deposits under National Savings Scheme | Post office | Anyone | 2,500 | 10% | 7.50% |
| 18 | 194F | Payments on account of re-purchase of Units by Mutual Funds or UTI | Mutual Fund House | Anyone | Not applicable | 20% | 15% |
| 19 | 194G | Commission, prize etc., on sale of lottery tickets | Anyone | Anyone | 15,000 | 5% | 3.75% |
| 20 | 194H | Commission or brokerage | Anyone including Individual or HUF who are liable for tax audit | Anyone | 15,000 | 5% | 3.75% |
| 21 | 194-I(a) | Rent of plant & machinery | Anyone including Individual or HUF who are liable for tax audit | Anyone | 2,40,000 | 2% | 1.50% |
| 22 | 194-I(b) | Rent of immovable property | Anyone including Individual or HUF who are liable for tax audit | Anyone | 10% | 7.50% | |
| 23 | 194-IA | Payment for purchase of immovable property (Other than Agriculture Land and compulsory acquisition) | Anyone | Anyone | 50,00,000 | 1% | 0.75% |
| 24 | 194-IB | Payment of rent by individual or HUF | Individual or HUF | Anyone | 50000 Per Month | 5% | 3.75% |
| 25 | 194-IC | Payment for Joint Development Agreements | Anyone | Anyone | Not applicable | 10% | 7.50% |
| 26 | 194J | Fee for Professional Services | Anyone including Individual or HUF who are liable for tax audit | Anyone | 30,000 | 10% | 7.50% |
| 27 | 194J | Technical Services or Royalty or payment to call centre etc. Read amendment at https://bit.ly/2ZQAXWJ | Anyone including Individual or HUF who are liable for tax audit | Anyone | 30,000 | 2% | 1.50% |
| 28 | 194LA | Compensation on acquisition of immovable property (Other than Agriculture Land) | Anyone | Anyone | 2,50,000 | 10% | 7.50% |
| 29 | 194LBB(i) | Payment of income by Investment fund | Anyone | Anyone | Not applicable | 10% | 7.50% |
| 30 | 194LBC(1) | Income by securitisation trust | Anyone | Individual or HUF | Not applicable | 25% | 18.75% |
| 31 | 194LBC(1) | Income by securitisation trust | Anyone | Anyone other than Individual or HUF | Not applicable | 30% | 22.50% |
| 32 | 194M | Payment to commission, brokerage etc. (This section is applicable when 194C, 194D, 194J and 194 H is not applicable.) | Individual and HUF | Anyone | 5,00,000 | 5% | 3.75% |
| 33 | 194-O | TDS on e-commerce https://bit.ly/3chhDEH participants (effective from 1 October 2020)
| E-commerce Operator | Anyone | 5,00,000 | 1% | 0.75% |
*Revised rate of TDS is applicable from 14th May 2020. Reduced rate of TDS will be applicable if Credit and payment is made on or after 14th May 2020.
Notes:
- As per section 206AA, if deductee do not furnish Permanent Account Number(PAN) to the payer (i.e., deductor), then the deductor shall deduct tax at the higher of the following rates :
- At the rate specified in the relevant provision of the Act.
- At the rate or rates in force, i.e., the rate prescribed in the Finance Act.
- At the rate of 20%.
2. Above TDS rates are applicable where deductee is resident. if deductee is non-resident then above TDS rate chart will not be applicable