TDS Rates Due to COVID



TDS rates effective from 14-05-2020 till 31-03-2021


Nature of Payment

Relevant Section

TDS rate effective till

13-05-2020

TDS rate effective from

14-05-2020

Receiving accumulated taxable part of PF

192A

10%

10%

Interest received on securities

193

10%

7.5%

Dividend received from Mutual funds and on company's shares

194 & 194K

10%

7.5%

Interest other than Interest on Securities e.g. Fixed deposit interest

194A

10%

7.5%

Winnings from lottery, crosswords or any sort of game

194B

30%

30%

Winnings from horse races

194BB

30%

30%

Insurance Commission received by an Individual

194D

5%

3.75%

Life Insurance Policies not exempt under Section 10(10D)

194DA

5%

3.75%

Commission or brokerage received except for Insurance Commission

194H

5%

3.75%

Payment made while purchasing land or property

194IA

1%

0.75%

Payment of rent by individual or HUF exceeding Rs. 50,000 per month

194IB

5%

3.75%

Payment made to professional or commission or brokerage of more than Rs 50 lakh and above

194M

5%

3.75%

Cash withdrawal exceeding Rs 20 lakh or 1 crore as the case maybe

194N

2%

2%

Payment of Professional Fees etc.

194J

2% (FTS, certain royalties, call centre) 10% (others)

1.5% (FTS, certain royalties, call centre) 7.5% (others)

Payment in respect of deposits under National Savings Scheme

194EE

10%

7.5%

Rent for plant and machinery

194I(a)

2%

1.5%

Rent for immovable property

194I(b)

10%

7.5%

 

 

Points to note

 

1.

A Ministry of Finance note stated, "There shall be no reduction in rates of TDS or TCS where the tax is required to be deducted and collected at higher rates due to non-furnishing of PAN/Aadhaar. For example, if the tax is required to be deducted at 20 per cent under section 206AA if the Income-tax Act due to non-furnishing of PAN/Aadhaar, it shall be deducted at the rate of 20 per cent and not rate of 15 per cent."

2.

One should remember that these new rates are effective for only the current financial year. Therefore, from April 1, 2021, the old TDS rates will be applicable.

3.

The reduced TDS rates will lead to higher self-assessment tax later.

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