TDS is calculated and levied on the basis of a threshold limit specified by income tax department, which is the maximum level of income after which TDS will be deducted from your future income/payments. TDS is deducted as per the Indian Income Tax Act, 1961. TDS is controlled by the Central Board for Direct Taxes and it is a part of the Indian Revenue Service Department.
TDS Rate Chart For 2021-22 w.e.f 01.04.2021
TDS Rate Chart for FY 2020-21 Pre & Post 14th May 2020
Reduced rate from 14/05/2020 to 31/03/2021 2. 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:-
Amendments introduced in 2019 budget.
TDS is to be deducted on payment made as prescribed by Income Tax Act by persons who are liable to deduct TDS. It is the duty of the deductor to deduct TDS as given in Income Tax Act Following are the revised rate of TDS applicable for Financial Year 2019 -2020 Assessment Year 2020-21
TCS RATES FOR THE FY 2021-22
The Tax Collection at Source Rates for the Financial Year 2019-20 is tabulated below:
A. CATEGORY – 1: SECTION 206C (1)
B. CATEGORY – 2: SECTION 206C (1C) C. CATEGORY – 3: SECTION 206C (1F) D. CATEGORY – 4: SECTION 206C (1E) E. CATEGORY – 5: SECTION 206C (1G) F. CATEGORY – 6: SECTION 206C (1H) G. CATEGORY – 7: SECTION 206CCA Note: Proposed section 206CCA of the Act would apply on any sum or amount received by a person (herein referred to as collectee) from a specified person. The proposed TCS rate in this section is higher of the following rates –
Twice the rate specified in the relevant provision of the Act; orThe rate of 5%.
- Therefore, TDS on the amount paid or credited during the period from 14th May, 2020 to 31st March, 2021 shall be deducted at the reduced rates specified in the table in para 1 above. Similarly, the tax on the amount received or debited during the period from 14th May, 2020 to 31st March, 2021 shall be collected at the reduced rates specified in the table in para 2 above.
- It is further stated that there shall be no reduction in rates of TDS or TCS, where the tax is required to be deducted or collected at higher rate due to non-furnishing of PAN/Aadhaar. For example, if the tax is required to be deducted at 20% under section 206AA of the Income-tax Act due to non-furnishing of PAN/Aadhaar, it shall be deducted at the rate of 20% and not at the rate of 15%.
- Legislative amendments in this regard shall be proposed in due course.
Due dates for deposit of TDS are as under
Due dates for TDS quarterly Returns
Notes and Important points to be kept in Mind
TDS is not applicable on service tax part if service tax is shown separatelyTCS (Tax Collection at Source) : Tax to be collected at source at the rate of 1 % on purchase of luxury cars exceeding value of Rs. 10 lakh and purchase of goods and services in cash exceeding Rs. 2 lakh. (Budget 2016 Proposal)TDS (Tax Deduction at Source):6% withholding tax to be deducted from the payment to a foreign company with no permanent establishment, for online advertisement. Ceiling limit for this purpose will be Rs. 1 Lakh. Levy will only apply to Business to BusinessUpon self-certification, no tax will be deducted on rental payments if the income of the payee does not exceed the maximum amount not chargeable toAn Individual or a Hindu Undivided Family whose total sales ,gross receipts or turnover from business or profession carried on by him exceeds the monetary limits under Sec.44AB during the preceding financial year shall also be liable to deduct taxSection 206AA of the Income-tax Act so as to provide that TDS shall not be deducted at a higher rate in case of non-residents not having PAN, subject to prescribedDeduction at lower or nil rate requires certificate u/s.197,which will take effect from the day it is issued. It cannot be usedInterest and penalty will be applicable as per section 201 and section 271c. Imprisonment can be in cases of continuous failure ranging from 3 months to 7 yearsFailure to file quarterly TDS Returns in time- late fee @ Rs. 200/- per day (maximum of TDS amount) Section 234E
Download TDS Rate Charts
TDS Rate Chart for FY 2021-22
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