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April 2, 2021
Financial Year 2021-22- TDS Rate Chart (AY 2021-22)
When Finance Minister Nirmala Sitharaman announced budget 2021, there was no changes made in the TDS rates for FY 2020-21 hence the old rates without giving effect of Covid reduction of 25% shall be applicable for FY 2021-22. That means, the TDS rate chart for FY 2021-22 (AY 2022-23) remains the same as it was in the financial year 2020-21.
However, a new section all together is proposed to be inserted namely Section 194Q w.e.f. 01.07.2021. The purpose behind this is to provide for deduction of TDS by person responsible for paying any sum to any resident for purchase of goods @ 0.10%. Here we have prepared a new TDS rate chart for the FY 2021-22 (AY 2022-23).
Table of Content
What is TDS?
The TDS stands for tax deducted at source. As per the Income Tax Act, any company or person making a payment is required to deduct tax at source if the payment exceeds certain threshold limits. TDS has to be deducted at the rates prescribed by the tax department.
TDS Rate Chart For Financial Year 2021-22 and Assessment Year 2022-23
Section of the Income-tax Act |
Nature of Payment |
Rate of TDS |
Remarks |
193 |
Interest on Securities |
10% |
– |
194 |
Dividend |
10% |
As per Budget 2021- No TDS needs to be deducted to AIF Category III. |
194A |
Interest other than interest on securities |
10% |
– |
194B |
Winnings from lotteries, crossword puzzles, card games and other games |
30% |
|
194C |
Payment of Contractors and sub-contractors |
1% (individual/HUF)2% (others) |
– |
194D |
Insurance Commission |
5% (Individual)10% (Companies) |
– |
194DA |
Payment in respect of life insurance policy |
5% |
– |
194E |
Payment to non-resident sportsmen/sports association |
20% |
The rate of TDS shall be increased by applicable surcharge and Health & Education cess. |
194EE |
Payments in respect of deposits under National Savings Scheme |
10% |
– |
194F |
Payments on account of re-purchase of Units by Mutual Funds or UTI |
20% |
– |
194G |
Commission, prize etc., on sale of lottery tickets |
5% |
– |
194H |
Commission or brokerage |
5% |
– |
194-I(a) |
Rent for plant and machinery |
2% |
– |
194-I(b) |
Rent for immovable property |
10% |
– |
194-IA |
Payment for acquisition of immovable property |
1% |
– |
194-IB |
Payment of rent by individual or HUF |
5% |
– |
194-IC |
Payment for Joint Development Agreements |
10% |
– |
194J |
Fee for Professional or Technical Services (FTS), Royalty, etc. |
2% (FTS, certain royalties, call centre)10% (others) |
– |
194K |
Payment of dividend by Mutual Funds |
10% |
– |
194LA |
Payment of Compensation on acquisition of immovable property |
10% |
– |
194LBA(1) |
Payment of income by Business trust |
10% |
– |
194LBB(i) |
Payment of income by Investment fund |
10% |
– |
194LBC(1) |
Income by securitization trust |
25% (Individual/HUF)30% (Others) |
– |
194M |
Payment to commission, brokerage etc. by Individual and HUF |
5% |
– |
194N |
Cash withdrawal during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office |
2% / 5% |
– |
194-O |
TDS on e-commerce participants |
1% |
– |
194Q |
Purchase of goods (applicable w.e.f 01.07.2021) |
0.10% |
A new section 194Q is proposed to be inserted to provide for deduction of TDS by person responsible for paying any sum to any resident for purchase of goods @ 0.1%. |
195 |
Payment of any other sum to a Non-resident |
|
The rate of TDS shall be increased by applicable surcharge and Health & Education cess. |
195 |
(a) Investment made by a Non-resident Indian Citizen |
20% |
– |
195 |
(b) Long-term capital gains referred to in Section 115E in case of a Non-resident Indian Citizen |
10% |
– |
195 |
(c) Long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-Section (1) of Section 112 |
10% |
– |
195 |
(d) Long-term capital gains as referred to in Section 112A |
10% |
– |
195 |
(e) Short-term capital gains referred to in Section 111A |
15% |
– |
|
(f) Any other income by way of long-term capital gains |
20% |
– |
|
(g) Income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC) |
20% |
– |
|
(h) Any other Income |
30% |
– |
Download: TDS rate chart for FY 2021-22 (AY 2022-23) PDF.
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