TDS Rate Chart For FY 2021-22 AY 2022-23, TCS Rates for FY 2021-22: TDS means “Tax Deducted at Source“. Here we provide TDS Rate Applicable for FY 2021-22 or AY 2022-23. TDS is one of the modes of collection of taxes, by which a certain percentage of amounts is deducted by a person at the time of making / crediting certain specific nature of payment to the other person and deducted amount is remitted to the Government Account.
TDS is calculated and levied on the basis of a threshold limit specified by income tax department, which is the maximum level of income after which TDS will be deducted from your future income/payments.
TDS is deducted as per the Indian Income Tax Act, 1961. TDS is controlled by the Central Board for Direct Taxes and it is a part of the Indian Revenue Service Department.
TDS Rate Chart For 2021-22 w.e.f 01.04.2021
TDS Rate Chart for FY 2020-21 Pre & Post 14th May 2020
Reduced rate from 14/05/2020 to 31/03/2021
| Section | Nature of Payment | Threshold Limit | Individual | Company |
| 192 | Salary | As per Slab | Slab Rates | Slab Rates |
| 192A | Premature withdrawal from Employee Provident Fund (Payment of accumulated balance of provident fund which is taxable in the hands of an employee) | Rs. 50000.00 | 10% | NA |
| 193 | Interest on Securities | Rs. 2500.00 | 10% | 10% |
| 194 | Dividend | Rs. 5000.00 | 10% | 10% |
| 194A | Interest other than interest on securities | Senior Citizen Rs. 50000.00 Others Rs. 40000.00 | 10% | |
| 194B | Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort | Rs. 10000.00 | 30% | 30% |
| 194B | Income by way of winnings from horse races | Rs. 10000.00 | 30% | 30% |
| 194C | Payment of Contractors and sub-contractors | Single payment : Rs. 30,000 Aggregate payment: Rs. 100000 | 1% | 2% |
| 194C | Contract – Transporter not covered under 44AE | Single payment : Rs. 30,000 Aggregate payment: Rs. 100000 | 1% | 2% |
| 194D | Insurance Commission | Rs. 15000.00 | 5% | 10% |
| 194DA | Payment in respect of life insurance policy | Rs. 100000 | 5% | 5% |
| 194E | Payment in respect of deposit under National Savings scheme | Rs. 2500.00 | 10% | 10% |
| 194EE | Payments in respect of deposits under National Savings Scheme | 20% | 20% | |
| 194G | Commission, prize etc., on sale of lottery tickets | Rs. 15000.00 | 5% | 5% |
| 194H | Commission or brokerage | Rs. 15000.00 | 5% | 3.75% |
| 194-I(a) | Rent for plant and machinery | Rs. 240000.00 | 2% | 2% |
| 194-I(b) | Rent for immovable property | Rs. 240000.00 | 10% | 10% |
| 194-IA | Payment for acquisition of immovable property | Rs. 50,00,000.00 | 1% | 1% |
| 194-IB | Payment of rent by individual or HUF | Rs. 50,000 per month | 5% | – |
| 194-IC | Payment for Joint Development Agreements | 10% | 10% | |
| 194J | Fee for Professional or Technical Services (FTS), Royalty, etc. | Fees for professional or technical services. If recipient is engaged in business of operation of call Centre If sum is payable towards fees for technical services (other than professional services) (Rs. 30000) | 2% | 2% |
| 194J | Fee for Professional or Technical Services (FTS), Royalty, etc. | In all other cases (Rs. 30000) | 10% | 10% |
| 194K | Payment of dividend by Mutual Funds | 10% | 10% | |
| 194LA | Payment of Compensation on acquisition of immovable property | Rs. 2,50,000.00 | 10% | 10% |
| 194LBA(1) | Payment of income by Business trust | 10% | 10% | |
| 194LBB(i) | Payment of income by Investment fund | |||
| 194LBC(1) | Income by securitisation trust | |||
| 194 -LB | Payment of interest on infrastructure debt fund to Non Resident | 5% | 5% | |
| 194 -LBB | Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)] | 10% | 10% | |
| 194 -LBC | Income in respect of investment made in a securitization trust (specified in Explanation of section 115TCA) | 25% | 10% | |
| 194M | Payment to commission, brokerage etc. by Individual and HUF | Rs. 50,00,000.00 | 5% | 5% |
| 194-O | TDS on e-commerce participants | Rs.5,00,000.00 | 1% | 1% |
| 194 – Q | Purchase of goods (applicable w.e.f 01.07.2021) | Rs 50,00,000.00 | 0.10% | 0.10% |
| 195 | Payment of any other sum to a Non -resident |
2. Further, the rate of Tax Collection at Source (TCS) for the following specified receipts has also been reduced by 25% for the period from 14th May, 2020 to 31st March, 2021:-
Amendments introduced in 2019 budget.
| Section | Nature | Pre- amendment | Post amendment |
| 194A | Interest Payment from Bank | Limit of Rs.10,000 | Limit of 40,000 |
| 194I | Rent Payment | Limit of Rs. 180,000 | Limit of Rs. 240,000 |
TDS is to be deducted on payment made as prescribed by Income Tax Act by persons who are liable to deduct TDS. It is the duty of the deductor to deduct TDS as given in Income Tax Act Following are the revised rate of TDS applicable for Financial Year 2019 -2020 Assessment Year 2020-21
TCS RATES FOR THE FY 2021-22
The Tax Collection at Source Rates for the Financial Year 2019-20 is tabulated below:
A. CATEGORY – 1: SECTION 206C (1)
| TCS Deposit Challan Code/Description | TCS Rate |
| 6CA – Alcoholic Liquor for Human Consumption | 1% |
| 6CB – Timber obtained under a forest lease | 2.5% |
| 6CC – Timber obtained by any mode other than under a forest lease | 2.5% |
| 6CD – Any other forest produce not being timber or tendu leaves | 2.5% |
| 6CE – Scrap | 1% |
| 6CI – Tendu Leaves | 5% |
| 6CJ – Minerals, being coal or lignite or iron ore | 1% |
| 6CK – Bullion & Jewelry | — |
B. CATEGORY – 2: SECTION 206C (1C)
| TCS Deposit Challan Code/Description | TCS Rate |
| 6CF – Parking Lot | 2% |
| 6CG – Toll Plaza | 2% |
| 6CH – Mining & Quarrying | 2% |
C. CATEGORY – 3: SECTION 206C (1F)
| TCS Deposit Challan Code/Description | TCS Rate |
| 6CL – Motor Vehicle (any mode of payment) | 1% |
D. CATEGORY – 4: SECTION 206C (1E)
| TCS Deposit Challan Code/Description | TCS Rate |
| 6CM – Cash Sale of any goods (other than bullion/jewelry) | — |
| 6CN – Providing any services (other than Ch-XVII-B) | — |
E. CATEGORY – 5: SECTION 206C (1G)
| TCS Deposit Challan Code/Description | TCS Rate |
| 6CO – Overseas Tour Program Package | 5% TCS in case of Non-Furnishing of PAN/Aadhaar: 10% |
| 6CP – Remittance under LRS for education loan taken from financial institution mentioned under section 80E | 0.50% |
| 6CQ – Remittance under LRS (for purpose other than for purchase of overseas tour package or for education loan taken from financial institution mentioned under section 80E) | 5% TCS in case of Non-Furnishing of PAN/Aadhaar: 10% |
F. CATEGORY – 6: SECTION 206C (1H)
| TCS Deposit Challan Code/Description | TCS Rate |
| 6CR – Sale of Goods | 0.10% TCS in case of Non-Furnishing of PAN/Aadhaar:1% |
G. CATEGORY – 7: SECTION 206CCA
| TCS Deposit Challan Code/Description | TCS Rate |
| Higher Rate of TCS for Non Filer of ITR | — |
Note: Proposed section 206CCA of the Act would apply on any sum or amount received by a person (herein referred to as collectee) from a specified person. The proposed TCS rate in this section is higher of the following rates –
- Twice the rate specified in the relevant provision of the Act; or
- The rate of 5%.
3. Therefore, TDS on the amount paid or credited during the period from 14th May, 2020 to 31st March, 2021 shall be deducted at the reduced rates specified in the table in para 1 above. Similarly, the tax on the amount received or debited during the period from 14th May, 2020 to 31st March, 2021 shall be collected at the reduced rates specified in the table in para 2 above.
4. It is further stated that there shall be no reduction in rates of TDS or TCS, where the tax is required to be deducted or collected at higher rate due to non-furnishing of PAN/Aadhaar. For example, if the tax is required to be deducted at 20% under section 206AA of the Income-tax Act due to non-furnishing of PAN/Aadhaar, it shall be deducted at the rate of 20% and not at the rate of 15%.
5. Legislative amendments in this regard shall be proposed in due course.
Due dates for deposit of TDS are as under
| Deductions made in the month of March | On or before 30th April |
| Deductions made other than month of March and tax on perquisites opted to be deposited
by employer | On or before seven days from the close of the
month |
Due dates for TDS quarterly Returns
| Due dates for TDS quarterly Returns | ||
| Quarter | Period | Due Date |
| Q1 | 1 Apr – 30 June | 31st July |
| Q2 | 1 July – 30 Sept | 31st Oct |
| Q3 | 1 Oct – 31 Dec | 31st Jan |
| Q4 | 1 Jan – 31 Mar | 31st May |
Notes and Important points to be kept in Mind
- TDS is not applicable on service tax part if service tax is shown separately
- TCS (Tax Collection at Source) : Tax to be collected at source at the rate of 1 % on purchase of luxury cars exceeding value of Rs. 10 lakh and purchase of goods and services in cash exceeding Rs. 2 lakh. (Budget 2016 Proposal)
- TDS (Tax Deduction at Source):6% withholding tax to be deducted from the payment to a foreign company with no permanent establishment, for online advertisement. Ceiling limit for this purpose will be Rs. 1 Lakh. Levy will only apply to Business to Business
- Upon self-certification, no tax will be deducted on rental payments if the income of the payee does not exceed the maximum amount not chargeable to
- An Individual or a Hindu Undivided Family whose total sales ,gross receipts or turnover from business or profession carried on by him exceeds the monetary limits under Sec.44AB during the preceding financial year shall also be liable to deduct tax
- Section 206AA of the Income-tax Act so as to provide that TDS shall not be deducted at a higher rate in case of non-residents not having PAN, subject to prescribed
- Deduction at lower or nil rate requires certificate u/s.197,which will take effect from the day it is issued. It cannot be used
- Interest and penalty will be applicable as per section 201 and section 271c. Imprisonment can be in cases of continuous failure ranging from 3 months to 7 years
- Failure to file quarterly TDS Returns in time- late fee @ Rs. 200/- per day (maximum of TDS amount) Section 234E
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Sir, we are in a position to receive a sum of Rs.3,50,00,000/-(Rupees Three Crore Fifty Lakhs) three cheques for Rs.one crore each and five cheques for Rs.Nine Lakhs and one cheque for Rs. Five Lakhs. from a corporate company of UK from their SBI Indian account to our ICICI account in India as corpus fund. Please let us know, In what way the taxes are applied for this transaction?
Dear Sir/Madam,
Ours is a manufacturing company and received a bill towards exhibition participation fee. Is TDS deductible in such case?
and also should tds be decucted on freight charges
Hindi me dale sabhi English man nhi hai sir
Dear Sir,
Directors Remuneration can we take under 194j
dear raju chaudhary sir,
sir,
i am an accountant of the educational institute and institute run under trust.
i would like to know
if I pay the bill of Rs. 45000/- by cheque, what about tds on this
and
if the same amount is paid in cash what about tds ?
and if i have no working capital to meet the expenses of the business
then what amouint should i borrow from others to avoid tds
amount in cash —————-
amount by cheque ————-
can i take donations ? if yes, what is the limit
Hi rajendra shah
Payments exceeding Rs. 20,000/- cannot be made in cash. If the same are made, the expense will be disqualified.
TDS has to be deducted if the same falls under the relevant sections concerning TDS. It makes no difference as regards to TDS whether the payments are made in cash or through bank.
If the required TDS is not deducted, 30% of the expense will be disallowed in the current year.
To the next query, borrowing working capital has nothing to do with TDS. You can borrow any amount but TDS provisions will still be applicable.
There is no limit on donations but it is better to get donations with the name and address of the donor. Anonymous donations should be as few as possible.
dear sir,
the reply u sent is very helpful .
thanks a lot.
Nice chart one query is that u/s 194c if the one time payment 30000 or whole year amount exceed 75000 that time no need to deduct the tax wef 01062015 if receiving the declaration
GOOD