Income tax TDS & TCS rates effective from 01st April 2021
TDS Rates effective from 01st April 2021
The concept of TDS was introduced with an aim to collect tax from the very source of income. As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government. The deductee from whose income tax has been deducted at source would be entitled to get credit of the amount so deducted on the basis of Form 26AS or TDS certificate issued by the deductor. The payment includes salary, commission, professional fees, interest, rent, etc.
TDS section, Threshold and applicable TDS Rate for the Financial year 2021- 22 as follows:-
| Section as per income tax Act | Particulars | Threshold limit for TDS applicability | Applicable TDS rate % | |
| 192 | Salary Income | Income Tax Slab | Slab rates | |
| Based on old and New Regime | ||||
| 192 A | EPF – Premature withdrawal | Rs 50,000 | 10% | |
| If no Pan, TDS @ 30% | ||||
| 193 | Interest on Securites | Rs. 10,000 | 10% | |
| 193 | Interest on Debentures | Rs 5,000 | 10% | |
| 194 | Dividend | Rs 5,000 | 10% | |
| (Dividend other than listed companies) | (No TDS on Div Payouts by REITs / InvITs) |
|||
| 194 A | Interest other than on securities by banks / post office | Rs. 40,000 | 10% | |
| (Rs 50,000 for Senior Citzens) | ||||
| 194 A | Interest other than on securities by others | Rs. 5,000 | 10% | |
| 194 B | Winnings from Lotteries / Puzzle / Game | Rs. 10,000 | 30% | |
| 194 BB | Winnings from Horse Race | Rs. 10,000 | 30% | |
| 194 C | Contractor-Single transaction- | Rs.30,000 | ||
| Individual/HUF | 1% | |||
| -Others | 2% | |||
| 194 C | Contractor- Consolidated payment transaction- | Rs.1,00,000 | ||
| Individual/HUF | 1% | |||
| -Others | 2% | |||
| 194 D | Payment of Insurance Commission | Rs. 15,000 | 5% (Individuals) | |
| (Form 15G/H can be submitted) | 10% (Companies) | |||
| 194DA | Payment in respect of Life Insurance Policy | Rs 1,00,000 | 5% | |
| 194E | Payment to non-resident sportsmen/sports association | – | 20% | |
| 194 EE | Payment of NSS Deposits | Rs 2,500 | 10% | |
| 194 G | Commission on Sale of Lottery tickets | Rs 15,000 | 5% | |
| 194 H | Commission or Brokerage | Rs 15,000 | 5% | |
| 194 I | Rent of Land, Building or Furniture | Rs. 2,40,000 | 10% | |
| 194I | Rent of Plant & Machinery | Rs. 2,40,000 | 2% | |
| 194 IB | Rent | Rs 50,000 (per month) | 5% | |
| (Tenant has to deduct TDS) | ||||
| (Individuals who are not liable to Tax Audit) | ||||
| 194 IA | Transfer of Immovable Property, other than Agricultural land | Rs. 50 lakh | 1% | |
| 194IC | Payment of monetary consideration under Joint Development Agreements | – | 10% | |
| 194J | Fees for professional or technical services | Rs 30,000 | 2% (or) 10% | |
| 194LA | Payment of compensation on acquisition of certain immovable property | Rs 2,50,000 | 10% | |
| 194 LB | Interest from Infrastructure Bond to NRI | NA | 5% | |
| 194 LD | Interest on certain bonds and govt. Securities | NA | 5% | |
| 194N | Cash withdrawal during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office: | > Rs 1cr | 2% | |
| 194Q | Purchase of goods (applicable w.e.f 01.07.2021) | Rs 50 lakh | 0.10% | |
| 206AB | TDS on non-filers of ITR at higher rates | – | 5% or Twice the rates in force | |
| (applicable w.e.f 01.07.2021) | ||||
| 194P | TDS on Senior Citizen above 75 Years (No ITR filing cases) | – | Slab Rates | |
TCS – Tax collected at Source – Rates effective from 01st April 2021
| SECTION 206C (1) | |||
| TCS Deposit Challan Code | Goods & Services liable to TCS | TCS Rate (%) | |
| 6CA | Alcoholic liquor for human consumption | 1 | |
| 6CB | Timber obtained under 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 | |
| 6C1 | Tendu Leaves | 5 | |
| 6CJ | Minerals, being coal or lignite or iron ore | 1 | |
| 6CK | Bullion &Jewelry | Omitt. by Finance Act 2017 (w.e.f. 14-2017) | |
| SECTION 206C (IC) | |||
| 6CF | Parking Lot | 2 | |
| 6CG | Toll Plaza | 2 | |
| 6CH | Mining & Quarrying | 2 | |
| SECTION 206C (IF) | |||
| 6CL | Motor Vehicle (any mode of payment)(Seller, who receives any amount as consideration for sale of a motor vehicle of the value exceeding 10 lakh Rupees) | 1 | |
| SECTION 206C (1E) | |||
| 6CM | Cash Sale of any goods (other than bullion/jewelry) | Omitt. by Finance A 1- Act 2017 (w.e.f. 4-2017) | |
| 6CN | Providing any services (other than Ch-XV11-B) | Omitt. by Finance Act 2017 (w.e.f. 1- 4-2017) | |
| SECTION 206C (IG) | |||
| 6C0 | Overseas Tour Program Package(Every person being a seller of an overseas tour program package, who receives any amount from a buyer, being the person who purchases such package) | 5(TCS in case of Non-Furnishing of PAN/Aadhar 10%) |
|
| 6CP | Remittance under LRS for education loan taken from financial institution mentioned under section 80E(Amount or aggregate of the amounts in excess of 7 lakh rupees remitted by the buyer in a financial year, if the amount being remitted out is a loan obtained from any financial institution as defined in section 80E, for the purpose of pursuing any education) | 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 (Person, being an authorised dealer, who receives an amount/aggregate of amounts exceeding 7 Lakh, for remittance out of India from a buyer, being a person remitting such amount out of India under the Liberalised Remittance Scheme of the Reserve Bank of India) | 5 (TCS in case of Non-Furnishing of PAN/ Aadhar 10%) |
|
| SECTION 206C (111) | |||
| 6CR |
Sale of GoodsEvery person, being a seller, who receives any amount as consideration for sale of any goods of the value or aggregate of such value exceeding 50 lakh rupees in any previous year, other than the goods being exported out of India or goods covered in sub-section (1) or sub-section (1F) or sub-section (1G) Budget Update |
0. 1(TCS in case of Non-Furnishing of PAN / Aadhar 1%) |
|
| In case of transaction on which TDS u/s.194Q is applicable w.e.f 01/07/2021, then TCS u/s.206C(1H) not applicable | |||
- Budget 2021-22: Relief to Senior Citizens : No Change in Income Tax slab
- Income Tax due dates : extension of various limitation dates – Notification no. 10/2021 in S.O. 966 (E) dated 27/02/2021
- Deduction of TDS in respect of aggregate Cash Withdrawal above Rs. 20 lakh by an account holder of National (Small) Savings Schemes for non ITR filer under section 194N of I.T. Act 1961 : SB Order No. 05/2021
Source: taxguru.in
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