TDS Rate Chart For 2021-22 w.e.f 01.04.2021, TCS Rates 2021

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.

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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.

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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

Download TDS Rate Chart 2021-22 in pdf

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

Download TDS Rate Charts

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