What are the TDS Rates Applicable for 2021-22

TDS Rates for FY 2021-22

 

The Economic Times reported a hike in the TDS and TCS rates on non-salary payments, effective from 1st April 2021.

For instance, if interest paid on a fixed deposit exceeds ₹40,000 between 1st April 2021 and 31st March 2022, then the lender will now deduct tax on the interest repaid at 10%. Previously this rate was 7.5% in FY 2020-21.

The due date to file TDS returns for Q4 of the FY 2020-21 is extended to 15th July 2021.

 

Here is a table showing the TDS rate 2021-22.

Nature of Payment and Section

Threshold

Individual/ HUF TDS Rate

Premature withdrawal from EPF, 192A

₹50000

10%

Salaries,192

As per the employee’s IT declaration

10%

Dividends,194

₹5000

10%

Interest on securities,193

₹10000

10%

Interest from banks,194A

₹40000

10%

Senior citizen,194A

₹50000

10%

Single contractor payment,194C

₹30000

1%

Aggregate contractor payment, 194C

₹1 lakh

15%

Insurance commission (15G and 15H allowed), 194D

₹15000

5%

Life insurance policy, 194DA

₹1 lakh

1%

NSS,194EE

₹2500

10%

Repurchase units by MFs, 194F

-

20%

Commission from lottery,194G

₹15000

5%

Brokerage,194H

₹15000

5%

Rent of plant, machinery or equipment, 194I(a)

₹2.40 lakh

2%

Rent of building, land and furniture, 194I(b)

₹2.40 lakh

10%

Transfer of immovable property besides agricultural land, 194IA

₹50 Lakh

1%

Rent by Individual / HUF (w.e.f. 1st June 2017), 194IB

₹50000 per month

5%

Payment under agreement applicable from FY 2017-18, 194IC

-

10%

Fees-tech services, call centre, etc., 194J (a)

₹30000

2%

Fee for royalty or professional service, 194J (b)

₹30000

10%

Compensation on the transfer of immovable property other than agricultural land, 194LA

₹2.50Lakh

10%

Payment of dividends by mutual funds, 194K

₹5000

10%

Infrastructure debt fund income (TDS rate for NRI), 194LB

-

5%

Interest on specific bonds and Government Securities, 194LD

-

5%

Cash withdrawal in previous year from one or more accounts with a lending institution, 194N

₹1 crore

2%

An individual or HUF payment to commission or brokerage, 194M

₹50 Lakh

5%

Purchase of goods, 194Q

₹50 Lakh

0.10%

TDS on e-commerce, 1940

₹5 Lakh

1%

Technically, the concept of TDS was introduced to collect tax from the very source of income. This obligates a deductor, liable to make payment to a deductee, make tax deduction at source and forward the same into the central government’s account.

Hence, apart from the mentioned TDS rates in the table, the government has set specific rates for Indian entities other than a company.

TDS Rates Applicable for Residents of India (Other Than a Company)

 

Here is a table showing the TDS rate chart for Indian residents.

Nature of Payment

Section

TDS Rate

Payment of salary

192

10%

Interest on securities

193

10%

Income in the form of interest

194A

10%

Payment of any dividend

194

10%

Income from a lottery and other games

194B

30%

Payment to the contractor - HUF/Individual

194C

1%

Payment to the contractor - Others

194C

2%

Income from horse race winnings

194BB

30%

Payment of any sum towards a life insurance policy

194DA

5%

Insurance commission

194D

5%

Payment due to repurchase of a unit by Unit Trust of India (UTI) or a mutual fund

194F

20%

Payment under National Savings Scheme

194EE

5%

Commission payments

194G

5%

Rent on Plant/machinery

194-I

2%

Rent on land, furniture, building or fitting

194-I

10%

Brokerage

194H

5%

Payment under a joint development agreement

194-IC

10%

Payment made on transfer of certain immovable property other than agricultural land

194-IA

1%

Rent payment by an HUF or individual

194-IB

5%

Fee for professional services, commission to a director and not carrying out any activity regarding the business

194J

10%

Not sharing any patent for technical services and sale or distribution.

194J

2%

Income distributed by a business trust to its unitholder

194LBA(1)

10%

Payment on certain immovable property

194LA

10%

Payment of any income on units of a mutual fund

194K

10%

Income from investment in securitisation fund for individuals/HUF

194LBC

25%

Payments by Individual/HUF with a limit of ₹50 lakhs

194M

194M

Withdrawal exceeding amount limit ₹1 crore

194N

2%

Payments on purchase of goods with the aggregate value of goods exceeding ₹50 lakhs

194Q

0.1%

Tax deduction by lending institutions while making payments

194P

Tax on total income

Sale of goods by e-commerce platforms

194O

1%

Other Income

-

10%

Now let’s check the TDS rate for non-resident as of the financial year 2021-22.

TDS Rates Applicable for Non-Resident Indians (Other Than a Company)

 

Here is a table showing the TDS rates for NRI’s under different sections.

Nature of Payment

Section

TDS Rate

Payment of salary

192

10%

Commission

194G

5%

Premature withdrawal from EPF

192A

10%

Income from lottery winnings

194B

30%

Income from horse racing

194BB

30%

Payment from repurchasing a unit by Unit Trust of India

194F

20%

Payment to non-resident sportsman

194E

20%

Payment on compensation on immovable property

194LB

5%

Payment to a person under National Savings Scheme (NSS)

194EE

10%

Interest receivable to a business

194LBA(2)

5%

Dividend received from SPV by a business trust

194LBA(2

10%

Income from an investment fund to a unit holder

194LB

30%

Rental income, or income from real estate assets owned by business trust

194LBA(3)

30%

Interest for the loan borrowed in foreign currency by an Indian company

194LC

5%

Interest payable against long term bonds listed in IFSC)

194LC

4%

Income from investment in securitisation fund

194LBC

30%

Payment of interest on the bond to foreign Investor

194LD

5%

Income from units of an offshore fund

196B

10%

Income from foreign currency bonds or GDR of an Indian company

196C

10%

Any income through LTCG

195

15%

Payment of any other sum to NRI by way of - LTCG under section 112A, STCG under section 111A, LTCG under section 112(1)(c)(iii), Royalty payable to the Indian government for agreement on industrial policy, Technical fees to the Indian government related to industrial policy.

195

10%

Payment of any other sum to NRI by way of - Investment made by NRI, LTCG referred to in section 115E, Interest payable on sum borrowed by the Indian government in foreign currency, Royalty payable to the Indian concern by government or Indian concern in pursuance of an agreement on matters related to industrial policy Income from royalty payable to or by the Indian government for the copyright referred in section 115A.

195

20%

Any other income related to NRI

195

30%

Apart from Indian and non-Indian residents, the companies are obligated to pay a certain amount of TDS. Therefore, we have segregated the TDS rate for firms according to domestic and non-domestic categories.

TDS Rates Applicable for Domestic Companies

 
Here is a table enlisting the TDS rates for domestic companies.

Nature of Payment

Section

TDS Rate for Company (Domestic)

Premature withdrawal from EPF

192

10%

Interest on securities

193

10%

Income in the form of interest

194A

10%

Payment of any dividend

194

10%

Payment to contractor or sub-contractor- Individuals/HUF

194C

1%

Payment to contractor or sub-contractor- Others

194C

2%

Income by way of lottery winningsn

194B

30%

Income from horse race winnings

194BB

30%

Payment in respect of a life insurance policy

194DA

5%

Insurance commission

194D

10%

Payment from repurchase of a unit by UTI or a mutual fund

194F

20%

Brokerage

194H

5%

Payment to a person under National Savings Scheme (NSS)

194EE

10%

Payments like commission on the lottery ticket sale

194G

5%

Rent on plant and machinery

194-I

2%

Rent on land, building, furniture or fitting

194-I

10%

Fee from commission to a director, professional services and lack of business activity

194J

10%

Payment to HUF or individual

194-IC

10%

Payment on transferring immovable property other than agricultural land

194-IA

1%

Payments to residents for purchasing goods when the aggregate value of goods exceeds ₹50 lakhs

194Q

0.1%

Payment of income against mutual funds as per section 10(23D)

194K

10%

Income paid against investment fund to a unit holder

194LBB

10%

Payment on the attainment of certain immovable property

194LA

10%

Cash withdrawal

194N

2%

Income distributed by a business trust to its unit holder

194LBA(1)

10%

Income from investment in securitisation fund

194LBC

10%

Payments by Individual/HUF where the limit is ₹50 Lakhs

194M

5%

Apart from Indian and non-Indian residents, the companies are obligated to pay a certain amount of TDS. Therefore, we have segregated the TDS rate for firms according to domestic and non-domestic categories.

TDS Rates for Non-domestic Companies

 
Here is a table explaining the TDS rate for private limited companies which are non-domestic.

Nature of Payment

Section

TDS Rate

Income by way of lottery winnings

194B

30%

Income from horse race winnings

194BB

30%

Payment to non-resident sportsman

194E

20%

Payments such as commission

194G

5%

Payment in on the purchase of an immovable property

194LB

5%

Interest receivable to a business

194LBA(2)

5%

Dividend received from SPV by a business trust

194LBA(2)

10%

Rental income, or income from real estate assets owned by business trust

194LBA(3)

40%

Income from an investment fund to a unit holder

194LBB

40%

Income from investment in securitisation fund

194LBC

40%

Interest on a loan borrowed by an Indian company in foreign currency

194LC

5%

Interest payable against long term bonds listed in IFSC

194LC

4%

Payment of interest on the bond to foreign investors

194LD

5%

Income (inclusive of LTCG) from foreign currency bonds

196C

10%

Income (including LTCG) from units of an offshore fund.

196B

10%

 

 
 

Nature of Payment

Section

TDS Rate

Income by way of STCG under section 111A

195

15%

Earnings from royalty payable to the Indian concern by government or Indian concern in pursuance of an agreement on matters related to industrial policy

195

50%

Income arising out of long-term capital gains as per the recommendations of Section 112A

195

20%

Payment of any other amount to a Non-resident company from income arising from any other source

195

40%

Payment from- Any other sum such as-Income by way of LTCG under section 112(1)(c)(iii), Income earned in terms of fees which is payable by the government or an Indian organisation for technical services, Income arising out of royalty which is payable by the government or an Indian organisation subject to certain conditions.

195

10%

Income by way of STCG under section 111A

195

15%

 
 

Following these tables will help you understand the differences in TDS rates for specific individuals and companies. 

Since the calculation is quite complicated, we suggest using online TDS calculators to streamline the entire process.

 

Frequently Asked Questions