Chart of reduced TDS rates for FY 2020-21 from 14.05.2020 to 31.03.2021

Reduction in rate of TDS deduction at Source (TDS)

n order to provide more funds at the disposal of taxpayers for dealing with the economic situation arising out of COVID-19 pandemic, rates of TDS for the following non-salaried specified payments made to non-residents have been reduced by 25% for following non-salaried specified payments.

finallogofintax-1

Chart of reduced TDS rates for FY 2020-21 from 14.05.2020 to 31.03.2021

S. NoSection of the Income-tax ActNature of PaymentExisting Rate of TDSReduced rate from 14/05/2020 to 31/03/2021
1193Interest on Securities10%7.5%
2194Dividend10%7.5%
3194AInterest other than interest on securities10%7.5%
4194CPayment of Contractors and sub-contractors1% (individual/HUF)

 

2% (others)

0.75% (individual/HUF)

 

1.5% (others)

5194DInsurance Commission5%3.75%
6194DAPayment in respect of life insurance policy5%3.75%
7194EEPayments in respect of deposits under National Savings Scheme10%7.5%
8194FPayments on account of re-purchase of Units by Mutual Funds or UTI20%15%
9194GCommission, prize etc., on sale of lottery tickets5%3.75%
10194HCommission or brokerage5%3.75%
11194-I(a)Rent for plant and machinery2%1.5%
12194-I(b)Rent for immovable property10%7.5%
13194-IAPayment for acquisition of immovable property1%0.75%
14194-IBPayment of rent by individual or HUF5%3.75%
15194-ICPayment for Joint Development Agreements10%7.5%
16194JFee for Professional or Technical Services (FTS), Royalty, etc.2% (FTS, certain royalties, call centre)
10% (others)
1.5% (FTS, certain royalties, call centre)
7.5% (others)
17194KPayment of dividend by Mutual Funds10%7.5%
18194LAPayment of Compensation on acquisition of immovable property10%7.5%
19194LBA(1)Payment of income by Business trust10%7.5%
20194LBB(i)Payment of income by Investment fund10%7.5%
21194LBC(1)Income by securitisation trust25% (Individual/HUF)
30% (Others)
18.75% (Individual/HUF)
22.5% (Others)
22194MPayment to commission, brokerage etc. by Individual and HUF5%3.75%
23194-OTDS on e-commerce participants1%

 

 

(w.e.f. 1.10.2020)

0.75%

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