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TDS Rates for AY 20-21 | TDS Rate Chart
TDS (Tax Deducted at Source) is a system in which an individual is liable to deduct tax for payment of services received. The tax deducted from the total payment amount goes to the government. TDS is applicable on salary, interest, commission, fee and others. Depending on the type of service, the service receiver retains a percentage of the amount. And deposits the same with the Government. If the individual has deducted more than the required tax amount, he/she will be eligible for a Refund. The deductor is also liable to file TDS returns as per the act. The deductee can claim the TDS on the basis of the return filed by the deductor. The deductee may be eligible for a refund if the TDS amount exceeds the taxes paid as per the prescribed rates. In this article we cover the TDS Rates for AY 20-21
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TDS Rate on Salary :
Any employer has to deduct tax at source while making the payment to its employees. Employer to deduct TDS if the total income of the employee is taxable. That is, total income is more than Rs. 2, 50,000. No TDS deduction if your total income is Rs. 2,50,000/- or below. This amount is applicable for individuals below the age of 60 years. Unlike the previous years, there slabs for men and women are the same. Naturally, TDS deduction rate on salary ranges from 5% to 30% as per the slab rates.
The following chart contains the TDS amount applicable for each type of payment :
TDS Rates for AY 20-21 | TDS Rate Chart for FY 2019-2020
| Section | Particulars | TDS Rates (in %) |
| Section 192 | Payment of salary | According to Income Slab as specified above |
| Section 192A | Payment of accumulated balance of provident fund which is taxable in the hands of an employee (with effect from 01.06.2015). | 10% |
Section 193 | Interest on securities a) any debentures or securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act; b) any debentures issued by a company where such debentures are listed on a recognized stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder; c) any security of the Central or State Government; d) interest on any other security | 10% |
Section 194 | Dividend other than the dividend as referred to in Section 115-O | 10% |
| Section 194A | Income by way of interest other than “Interest on securities” | 10% |
| Section 194B | Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort | 30% |
| Section 194BB | Income by way of winnings from horse races | 30% |
Section 194C Payment to contractor/sub-contractor | a) HUF/Individuals | 1% |
Section 194C Payment to contractor/sub-contractor | b) Others | 2% |
| Section 194D | Insurance Commission | 5 (10% till Assessment year 2016-17) |
| Section 194DA | Payment in respect of life insurance policy | 1 (2% till 31-5-2016) |
| Section 194EE | Payment in respect of deposit under National Savings scheme | 10 (20% till 31-5-2016) |
| Section 194F | Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India | 20% |
| Section 194G | Commission, etc., on sale of lottery tickets | 5 (10% till 31-5-2016) |
| Section 194H: | Commission or brokerage | 5 (10% till 31-5-2016) |
| Section 194-I: Rent | a) Plant & Machinery | 2% |
| Section 194-I: Rent | b) Land or building or furniture or fitting | 10% |
| Section 194-IA | Payment on transfer of certain immovable property other than agricultural land | 1% |
| Section 194-IB | Rent payable by an individual or HUF not covered u/s. 194I (W.E.F. from 01.06.2017) | 5% |
| Section 194-IC | Payment of Consideration (not being in kind) under Joint Development Agreement or other similar agreement | 10% |
Section 194J | Any sum paid by way of
| 10% |
| Section 194LA | Payment of compensation on acquisition of certain immovable property | 10% |
| Section 194LBA | Business trust shall deduct tax while distributing, any interest received or receivable by it from an SPV or any income received from renting or leasing or letting out any real estate asset owned directly by it, to its unitholders. | 5%/10% |
| Section 194LBB | Investment fund paying an income to a unitholder [other than income which is exempt under Section 10(23FBB)] | 10% |
| Section 194LBC | Income in respect of investment made in a securitization trust (specified in Explanation of Section 115TCA) | 25% in case of Individual or HUF 30% in case of other individuals |
| Section 194LC | Interest income from Indian company on funds borrowed in international currency | 5% |
| Section 194LD | Income by way of interest on certain government securities and rupee-denominated bonds | 5% |
Naturally, the TDS on income/salary is calculated on an annual basis. The TDS deduction on salary, as indicated earlier is as per the slab rates. Certainly, read the article on income tax slab rates for AY 20-21 to know more.
Now, make TDS payments here.
Frequently Asked Questions (About TDS rates for AY 20-21)
What is a TDS Certificate?
A deductor issues a TDS certificate to the deductee. The two kinds of TDS certificates are Form 16 and Form 16A.
What is Form 16?
Employers issue Form 16 to its employees. It contains details of the income earned and the tax deducted over the course of the year.
What is Form 16A?
Form 16A shows the amount of tax deducted at source. Other than that, it shows the total of payments made during the year & the type of services provided. Its issued for payments such as rent, professional Fees, Bank Interest Payments, etc.
What is the exemption limit for individuals under 60 years of age?
For Individuals who are below the age of 60 years, Rs.2.5 lakh will be exempt from tax.
Are the TDS rates for AY 20-21 for men and women different?
No. The TDS rates for AY 20-21 for men and women are the same.
What if the deductee does not have a PAN card or does not have a valid PAN?
If the deductee does not have a PAN card, then TDS to be deducted at 20% or at prescribed rates which ever is higher.
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