TDS Rates Due to COVID
TDS rates effective from 14-05-2020 till 31-03-2021 |
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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. |