TDS Rate Chart for FY 2020-21: Rates & FY 2026-27 Update

Introduction

The TDS Rate Chart for FY 2020-21 helps businesses and taxpayers identify rates applicable between 1 April 2020 and 31 March 2021, a year in which specified non-salary TDS rates were temporarily reduced during COVID-19.

This guide explains the TDS Rate Chart for FY 2020-21, key thresholds, reduced rates from 14 May 2020 and the latest FY 2026-27 position under the Income-tax Act, 2025.

What Is the TDS Rate Chart for FY 2020-21?

TDS requires tax to be withheld from specified payments and deposited with the Government. The rate depends on the payment type, recipient status and applicable monetary threshold.

The TDS Rate Chart for FY 2020-21 covers common resident payments including interest, contractor payments, commission, rent, professional fees and certain property transactions.

COVID-19 TDS Rate Change During FY 2020-21

As part of COVID-19 relief measures, the Government reduced specified TDS rates on non-salary payments to residents by 25%. The relief applied from 14 May 2020 to 31 March 2021.

Therefore, the TDS Rate Chart for FY 2020-21 must be read in two periods:

• 1 April 2020 to 13 May 2020: Normal statutory rates applied.
• 14 May 2020 to 31 March 2021: Reduced rates applied to specified eligible payments.

Salary TDS was outside the relief, and higher deduction triggered by non-furnishing of PAN was not simply reduced by 25%. The TDS Rate Chart for FY 2020-21 should therefore be applied only after checking whether the payment was covered by the relief.

Complete TDS Rate Chart for FY 2020-21

The CBDT relief chart confirms the reduced rates for Sections 194-I, 194-IA, 194-IB, 194J, 194M and other specified provisions.

Section 194-O became effective from 1 October 2020. Its presence in the TDS Rate Chart for FY 2020-21 should therefore not be read as applying from 1 April 2020.

The prescribed rate for the applicable part of FY 2020-21 was reduced from 1% to 0.75%.

Key TDS Provisions for FY 2020-21

TDS on Contractor Payments under Section 194C

Under Section 194C, the normal TDS rate was 1% where the resident contractor was an Individual or HUF and 2% for other resident contractors. During the relief period, the eligible rates became 0.75% and 1.5%.

The TDS Rate Chart for FY 2020-21 also needs to be read with the ₹30,000 single-payment and ₹1,00,000 aggregate thresholds.

For a detailed explanation of contractor payments and applicability, read our Section 194C of the Income Tax Act guide.

TDS on Commission and Brokerage

Qualifying commission or brokerage under Section 194H was generally subject to 5% TDS after the ₹15,000 threshold. During the applicable relief period, the rate was reduced to 3.75%.

The date on which the liability to deduct tax arose should therefore be checked while reviewing an old transaction.

TDS on Rent

Under Section 194-I, the normal rate was 2% for rent of plant, machinery or equipment and 10% for rent of land, building, furniture or fittings.

The threshold for FY 2020-21 was ₹2,40,000. Eligible payments during the relief period were subject to reduced rates of 1.5% and 7.5%, respectively.

TDS on Professional and Technical Fees

Under Section 194J, specified technical services and certain cases attracted 2%, while professional services and other specified cases attracted 10%.

In the TDS Rate Chart for FY 2020-21, eligible relief-period rates became 1.5% and 7.5%.

For a detailed explanation of service classification, refer to our Section 194J of the Income Tax Act guide.

TDS Where PAN Was Not Furnished

The COVID reduction did not automatically reduce higher TDS applicable for non-furnishing of PAN. A 20% higher rate, where applicable, did not simply become 15% because the normal TDS rates had been reduced.

This exception matters when the TDS Rate Chart for FY 2020-21 is being used for historical reconciliation, correction of an old TDS return or review of a short-deduction demand.

Latest TDS Rates for FY 2026-27

From 1 April 2026, the Income-tax Act, 2025 governs current TDS obligations. The new Act uses the concept of a Tax Year, so the period commonly described as FY 2026-27 is legally Tax Year 2026-27.

Salary TDS is covered under Section 392, while most non-salary TDS provisions are consolidated under Section 393.

The historical TDS Rate Chart for FY 2020-21 should not be rewritten using the new section numbers because transactions up to 31 March 2026 remain governed by the earlier law. Payments or credits on or after 1 April 2026 are governed by the corresponding provisions of the Income-tax Act, 2025.

For a broader explanation, read our Income Tax Act 2025 key changes guide.

TDS Rate Chart for FY 2026-27

The current Section 393 framework confirms the 2% commission/brokerage rate with a ₹20,000 threshold, rent provisions and the 1% property-transfer rule.

Contractor payments remain at 1% for an Individual/HUF contractor and 2% for other contractors, while professional services attract 10%.

For immovable property, where the statutory ₹50 lakh condition is met, TDS is 1% of the higher of consideration or stamp duty value. This distinction is important when comparing current law with the TDS Rate Chart for FY 2020-21.

FY 2020-21 vs FY 2026-27 TDS Rates

The TDS Rate Chart for FY 2020-21 and Tax Year 2026-27 rates should be kept separate.

Note: The reduced FY 2020-21 rates generally applied from 14 May 2020 to 31 March 2021, not throughout the entire financial year.

For current filing requirements, businesses can refer to our TDS and TCS Compliance Calendar for FY 2026-27 and its guide on new TDS and TCS forms from 1 April 2026.

When Is TDS Deducted?

For many non-salary payments, TDS is deducted at the earlier of credit to the payee’s account or actual payment, subject to the specific provision.

Therefore, while applying the TDS Rate Chart for FY 2020-21 to an old transaction, the date on which the liability to deduct tax arose should be checked rather than relying only on the eventual bank-payment date.

Mistakes While Using a TDS Rate Chart

Common errors include applying COVID-reduced rates to the full FY 2020-21, ignoring thresholds, applying resident rates to non-resident payments, selecting the wrong Section 194J category or using old section numbers after 1 April 2026.

The TDS Rate Chart for FY 2020-21 is a historical compliance reference. Current transactions should be checked under the Income-tax Act, 2025.

The Income Tax Department has specifically clarified that for transactions on or after 1 April 2026, the relevant Section 393 table item should be quoted instead of old provisions such as Sections 194C, 194J or 194H. Using old references can cause system-level validation issues.

How Ebizfiling Can Help With TDS Compliance

Using the TDS Rate Chart for FY 2020-21 for historical records is only the first step. Businesses may also need to check whether TDS was deducted at the correct rate, deposited on time and reported accurately in the relevant statement. Even a small error in PAN, challan details, deductee information or deduction amount can lead to mismatches and compliance issues.

Ebizfiling’s TDS Return Filing service can assist with preparing and filing TDS statements, while the TDS Return Filing and Revision service can help correct errors in previously filed returns. For more complex cases involving rate applicability, payment classification, historical deductions or the transition to Section 393 under the Income-tax Act, 2025, businesses can also seek guidance through our Tax Consultancy Services.

Need help with TDS filing, correction or rate applicability? Connect with Ebizfiling today for professional TDS compliance support.

Conclusion

The TDS Rate Chart for FY 2020-21 must be read with the COVID-19 relief period. Normal rates generally applied from 1 April to 13 May 2020, while specified eligible non-salary rates were reduced by 25% from 14 May 2020 to 31 March 2021.

For current transactions, the TDS Rate Chart for FY 2020-21 cannot replace the Tax Year 2026-27 framework. The TDS Rate Chart for FY 2020-21 should remain a historical reference only. From 1 April 2026, Sections 392 and 393 of the Income-tax Act, 2025 govern current TDS obligations.

Using the TDS Rate Chart for FY 2020-21 for historical transactions and the latest Section 393 framework for current payments helps businesses reduce short-deduction, incorrect-section and reporting errors.

Frequently Asked Questions