TDS rate applicable for FY 2019-20 (AY 2020-21)
TDS (Tax deducted at Source) is made at the rates specified in the relevant provisions of the Act or the First Schedule to the Finance Act. TDS rates applicable for FY 2019-20 (AY 2020-21) for various sources of income are furnished below.
|
Section |
Nature of Payment |
Threshold Rs. |
TDS Rate % |
|
|
Individual/HUF |
Others |
|||
|
192 |
Salaries |
— |
Based on Slabs |
|
|
192 |
Premature withdrawal from EPF |
50,000 |
10 |
— |
|
193 |
Interest on securities |
10,000 |
10 |
10 |
|
194 |
Dividends |
2,500 |
10 |
10 |
|
194 A |
Interest on Bank Deposits – Depositors with Age less than 60 |
40,000 |
10 |
10 |
|
Depositors with Age 60 and above |
50,000 |
10 |
10 |
|
|
194 |
Interest (others) |
5,000 |
10 |
10 |
|
194 B |
Winnings from Lotteries |
10,000 |
30 |
30 |
|
194 BB |
Winnings from Horse Race |
10,000 |
30 |
30 |
|
194 C |
Contractor – Single Transaction |
30,000 |
1 |
2 |
|
During the Financial Year (Including transporter with more than 10 carriages) |
1,00,000 |
1 |
2 |
|
|
Transporter (44AE) declaration with PAN (UPTO 10 CARRIAGES) |
— |
— |
— |
|
|
194 D |
Insurance Commission ( 15 G-15 H allowed) |
15,000 |
5 |
10 |
|
194 DA |
Life Insurance Policy |
1,00,000 |
1 |
1 |
|
194 E |
Non-resident Sportsmen/ Sports Association |
— |
20 |
20 |
|
194 EE |
Payments in respect of Deposits under National Savings Certificate |
2,500 |
10 |
10 |
|
194 F |
Repurchase of units by Mutual Funds |
— |
20 |
20 |
|
194 G |
Commission on Lottery |
15,000 |
5 |
5 |
|
194 H |
Commission-Brokerage |
15,000 |
5 |
5 |
|
194 I |
Rent of Land and Building |
2,40,000 |
10 |
10 |
|
Rent of Plant/ machinery/ Equipment |
2,40,000 |
2 |
2 |
|
|
194 IA |
Transfer of certain immovable property other than agricultural land |
50,00,000 |
1 |
1 |
|
194 IB |
Rent by HUF/ Individual (wef 1/6/2017) |
50,000 P.M |
5 |
0 |
|
194 J |
Professional Fees/ Technical Fees etc |
30,000 |
10 |
10 |
|
Payment to Call centre operator (Wef 1.6.2017) |
30,000 |
2 |
2 |
|
|
194 LA |
Compensation on transfer of certain immovable property other than agricultural land |
2,50,000 |
10 |
10 |
Notes:-
- Surcharge and Higher Education Cess is not applicable on payments made to residents other than salary.
- In case of non-resident surcharge on TDS applicable.
- TDS rate becomes 20%, if PAN is not submitted and if the specified TDS rate is less than 20%
What are the changes in TDS for FY 2019-20 (AY 2020-21) compared to previous year?
The Finance Act 2019 has not made any changes in the rate of TDS and same rates as in the financial year 2018-19 continue for FY 2019-20(AY 2020-21) also except the following:-
- Threshold limit for Non-deduction of TDS from payment of interest on bank deposits is increased from Rs. 10,000 to Rs. 40,000 for all persons other than Senior Citizens.
For senior citizens, the threshold is Rs. 50,000
- Threshold limit for Non-deduction of TDS from payment of Rent is increased from Rs. 1,80,000 to Rs. 2,40,000 in a year.
