In order to provide more funds at the disposal of the taxpayers for dealing with the economic situation arising out of COVID-19 pandemic, the rates of Tax Deduction at Source (TDS) for the following non-salaried specified payments made to residents has been reduced by 25% for the period from 14th May, 2020 to 31st March, 2021:-
|
S. N. |
Section of the Income- tax Act |
Nature of Payment |
Existing Rate of TDS |
Reduced rate from 14/05/2020 to 31/03/2021 |
|
1 |
193 |
Interest on Securities |
10% |
7.5% |
|
2 |
194 |
Dividend |
10% |
7.5% |
|
3 |
194A |
Interest other than interest on securities |
10% |
7.5% |
|
4 |
194C |
Payment of Contractors and sub-contractors |
1% (individ- ual/HUF) 2% (others) |
0.75% (indi- vidual/HUF) 1.5% (others) |
|
5 |
194D |
Insurance Commission |
5% |
3.75% |
|
6 |
194DA |
Payment in respect of life insurance policy |
5% |
3.75% |
|
7 |
194EE |
Payments in respect of deposits under National Savings Scheme |
10% |
7.5% |
|
8 |
194F |
Payments on account of re-purchase of Units by Mutual Funds or UTI |
20% |
15% |
|
9 |
194G |
Commission, prize etc., on sale of lottery tickets |
5% |
3.75% |
|
10 |
194H |
Commission or brokerage |
5% |
3.75% |
|
11 |
194-I(a) |
Rent for plant and ma- chinery |
2% |
1.5% |
|
12 |
194-I(b) |
Rent for immovable prop- erty |
10% |
7.5% |
|
13 |
194-IA |
Payment for acquisition of immovable property |
1% |
0.75% |
|
14 |
194-IB |
Payment of rent by indi- vidual or HUF |
5% |
3.75% |
|
15 |
194-IC |
Payment for Joint Devel- opment Agreements |
10% |
7.5% |
|
16 |
194J |
Fee for Professional or Technical Services (FTS), Royalty, etc. |
2% (FTS, cer- tain royalties, call centre) 10% (others) |
1.5% (FTS, certain royal- ties, call cen- tre) 7.5% (others) |
|
17 |
194K |
Payment of dividend by Mutual Funds |
10% |
7.5% |
|
18 |
194LA |
Payment of Compensa- tion on acquisition of im- movable property |
10% |
7.5% |
|
19 |
194LBA(1) |
Payment of income by Business trust |
10% |
7.5% |
|
20 |
194LBB(i) |
Payment of income by In- vestment fund |
10% |
7.5% |
|
21 |
194LBC(1) |
Income by securitisation trust |
25% (Individ- ual/HUF) 30% (Others) |
18.75% (Indi- vidual/HUF) 22.5% (Oth- ers) |
|
22 |
194M |
Payment to commission, brokerage etc. by Individ- ual and HUF |
5% |
3.75% |
|
23 |
194-O |
TDS on e-commerce par- ticipants |
1% (w.e.f. 1.10.2020) |
0.75% |
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:-
|
S. No |
Section of the In- come-tax Act |
Nature of Receipts |
Existing Rate of TCS |
Reduced rate from 14/05/2020 to 31/03/2021 |
|
1 |
206C(1) |
Sale of |
||
|
(a) Tendu Leaves |
5% |
3.75% |
||
|
(b)Timber obtained under a for- est lease |
2.5% |
1.875% |
||
|
(c) timber obtained by any other mode |
2.5% |
1.875% |
||
|
(d) Any other forest produce not being timber/tendu leaves |
2.5% |
1.875% |
||
|
(e) scrap |
1% |
0.75% |
||
|
(f) Minerals, being coal or lig- nite or iron ore |
1% |
0.75% |
||
|
2 |
206C(1C) |
Grant of license, lease, etc. of (a) Parking lot |
2% |
1.5% |
|
(b) Toll Plaza |
2% |
1.5% |
||
|
(c) Mining and quarrying |
2% |
1.5% |
||
|
3 |
206C(1F) |
Sale of motor vehicle above 10 lakhs |
1% |
0.75% |
|
4 |
206C(1H) |
Sale of any other goods |
0.1% (w.e.f 01.10.2020) |
0.075% |