TDS Rate Chart Financial year 2019-20 AY 20-21

Tax Deducted at Source or TDS is type of tax deducted from the payments and salaries of the employees. As per the Income Tax Act, 1961, TDS is defined as tax deducted by the company or any other person making payment if the payment exceeds certain threshold limits. It is basically deducted at the tax rates prescribed by the tax department.

The company or person who makes the payment after deducting the TDS from the salaries is called a deductor and the company or person who is receiving the payment or salary is called a deductee. It is the responsibility of the deductor’s to deduct TDS from the payments/salaries before making the payment and depositing the same with the government. TDS is deducted with respect to the mode of payment i.e. either cash, cheque or credit whether it is linked to the PAN card of the deductor and deductee.

Following are types of payments on which TDS is deducted:

  • Salaries of the workers
  • Rent payments
  • Professional fees
  • Interest payable by Assessee
  • Consultation fees

Finance Act, 2019 have brought some new changes in the TDS provisions. These are minor but important to note down. For your reference we have marked TDS rate charge for financial year 2019-20 in the below given table:

  • The interest limit of 194A has been enhanced from Rs. 10,000/- to Rs. 40,000/- in case if the payer is a bank, co-operative society and post office. For the senior citizen limit is Rs. 50,000.
  • The monetary limit of 194-I is enhanced to Rs. 2, 40,000/- from Rs. 1, 80,000/-. Accordingly, in case the rent payment does not exceed the limit of Rs. 2, 40,000/- in a financial year, the deductor is not required to deduct the TDS.

Common TDS provisions made to individual, firms or companies in India:

Section

Nature of Payment for Domestic Transactions

Threshold Limit

Individual / HUF

Others

15G-15H

   

Rs.

TDS Rate (%)

 

Allowed

193

Interest on the Securities/ Debentures

10,000

10

10

No

 

194A

Interest (Banks, co-operative society and post office)/ For Senior Citizen Rs. 50000

40,000/

50000

10

10

YES

Interest (Others)

5,000

10

10

YES

 

 

194C

 

Contractor – on a Single Transaction

30,000

1

2

No

Contractor – During the Financial Year

1,00,000

1

2

No

Transporter (44AE) declaration with PAN card

194H

Commission / Brokerage

15,000

5

5

No

 

 

194I

Rent of a building and Land– F&F

2,40,000

10

10

YES

Rent of the Plant / Machinery / Equipment

2,40,000

2

2

YES

194IB

Rent by an Individual / HUF (wef 01.06.2017)

50000/PM

5

No

192A

Premature withdrawal from EPF

50,000

10

YES

194IA

Transfer of a certain immovable property other than an agriculture land

50,00,000

1

1

No

 

 194J

 

194J

Professional Fees / Technical Fees /Director fees/ royalty

30,000

10

10

No

Payment to the Call Centre Operator

(w.e.f. 01.06.2017)

30,000

2

2

No

192

Salaries (Annexure-I)

Basis on Slab

No

TDS provisions for resident or non –resident individual, firm or companies in India:

Section

Nature of Payment for Domestic Transactions

Threshold Limit

Individual / HUF

Others

15G-15H

Deduction At the  time of

   

Rs.

TDS Rate (%)

 

Allowed

 

192A

Premature withdrawal from EPF

50,000

10

YES

Payment

192

Salaries (Annexure-I) for the resident and  non- resident

Basis on Slab

No

Payment

193

Interest on the Securities/ Debentures

10,000

10

10

No

Credit or payment (earlier)

 

194A

Interest (Banks)/ For Senior Citizen Rs. 50000

40,000

10

10

YES

Credit or payment (earlier)

Interest (Others)

5,000

10

10

YES

Credit or payment (earlier)

194

Dividends (other than the listed Companies)

10

10

YES

Payment

194B

Winning from Lotteries

(resident & non- resident)

10,000

30

30

No

Payment

194BB

Winning from Horse Race

(resident & non-resident)

10,000

30

30

No

Payment

 

 

194C

Contractor – Single Transaction

30,000

1

2

No

Credit or payment (earlier)

Contractor – During the Financial Years

1,00,000

1

2

No

Credit or payment (earlier)

Transporter (44AE) declaration with PAN card

 

194DA

Life insurance Policy

1,00,000

1

1

YES

Payment

194D

Insurance Commission

15,000

5

5

YES

Credit or payment (earlier)

194EE

NSS

(resident and non- resident)

2,500

10

10

YES

Payment

194E

Non-Resident Sportsmen or Sports Association

 

20

20

No

Credit or payment (earlier)

194F

Repurchase Units by MFs

(resident and  non- resident)

 

20

20

No

Credit or payment (earlier)

194G

Commission – Lottery resident and non –resident

15,000

5

5

No

Credit or payment (earlier)

194H

Commission / Brokerage

15,000

5

5

No

Credit or payment (earlier)

194IA

TDS on the transfer of certain immovable property other than agriculture land

50,00,000

1

1

No

Credit or payment (earlier)

194IB

Rent by Individual / HUF (wef 01.06.2017)

50000/PM

5

No

Credit or payment (earlier)

 

 

194I

Rent of Building and Land– F&F

2,40,000

10

10

YES

Credit or payment (earlier)

Rent of Plant / Equipment/ Machinery

2,40,000

2

2

YES

Credit or payment (earlier)

194J 

 

Professional / Technical /Director fees/ royalty

30,000

10

10

No

Credit or payment (earlier)

 194J

Payment to Call Centre Operators

30,000

2

2

No

Credit or payment (earlier)

 

194LA

Immovable Property (TDS exempted under RFCTLARR Act (w.e.f. 01.04.2017)

 

194LA 

 

 

Compensation on the transfer of a certain immovable property other than any agricultural land

2,50,000

10

10

No

payment

 

194LB

 

Income by way of interest from an infrastructure debt fund(non- resident)

 

 

5

 

5

 

No

 

Credit or payment (earlier)

194LC

Income by way of interest by an Indian specified company to a non-resident / foreign company on the foreign currency approved loan / long-term infrastructure bonds from outside India i.e. applicable from 1st July, 2012

 

5

5

No

Credit or payment (earlier)

194LD

Interest on certain bonds and Govt. Securities (from 01-06-2013)

 

5

5

No

Credit or payment (earlier)

 195

Other Sum payable to a non-resident Indian citizen

       

 

 

 

 

 

 

 

 

Credit or payment (earlier)

 

Income by way of long-term capital gains referred in Section 115E if a Non-resident Indian Citizen

 

10

10

No

 

Income in respect of investment made by a Non-resident citizen

 

20

20

No

 

Income made by way of long-term capital gains referred in sub-clause (iii) of clause of sub-section (1) of Section 193

 

10

10

No

 

Income made by way of short-term capital gains referred in Section 111A

 

15

15

No

 

 Any other income made by way of long-term capital gains

 

20

20

No

 

Income made by way of interest payable by Government or an Indian concern on borrowed money or incurred debt by the Government or the Indian concern in the foreign currency (not being income by way of interest referred in Section 194LB or Section 194LC

 

20

20

No

 

Any other type of income

 

30

30

No

 

TDS is not applicable on the GST and the due dates for submitting TDS are given as follows:

Section 194IA/194IB: On or before the 30th day from the end of the month when tax is deducted.

Other Sections:

  • April to February (Monthly) – on or before the 7th day from the end of the month when the tax is deducted
  • For March – 30th April.

As per the Section 234E of Income tax Act, 1961 if a person fails to deliver statement within the prescribed time he shall be liable to pay, a sum of rupees two hundred for every day during which the failure continues, maximum to the amount of TDS.
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Akash Kumar

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