Nirmala Sitharaman, Finance Minister has announced a slew of direct tax measures as part of the Covid-19 relief package on 1st April 2021 by reducing the TDS and TCS rates by 25%. This rate will be applicable till 31st March 2022. TDS means Tax Deduction at Source, it is one of the important compliance for Income Tax Assessee. Finance Minister has made many changes in new TDS/TCS rates, major changes are the New Section of TDS & TCS for Non-Filer of Income Tax Returns (ITR) and TDS on Purchase of Goods w.e.f 01/07/2021. We have also provided the TDS Rate Chart for FY 2021-2022 PDF download link below.
In this article, we have specified various TDS rates applicable for FY 2021-2022 (AY 2022-2023). We have explained various TDS rates based on the nature of payment & its threshold limits for TDS.
TDS Rate Chart For FY 2021-2022
| Section | Nature of Payment | Threshold | Individual/HUF | Others |
| 192 | Salary | Taxable Income liable to Tax | Normal Slab Rate OR New Tax Regime Slab Rate as opted by employee. OPTION TO CHOOSE BETWEEN NEW AND OLD TAX SLAB REGIME FOR SALARIED EMPLOYEES | NA |
| 192A | Premature withdrawal from EPF | 50,000 | 10% | NA |
| 193 | Interest on securities | 2,500 | 10% | 10% |
| 194 | Dividend | 5,000 | 10% | 10% |
| 194A | Interest on Bank Deposit/Post Office Deposit/Banking Co-Society Deposit | 40000 | 10% | 10% |
| 194A | Interest on Bank Deposit/Post Office Deposit/Banking Co-Society Deposit (Payee:Senior Citizen) | 50,000 | 10% | NA |
| 194A | Interest other than “Interest on securities”(Other Than Bank Deposit/Post Office Deposit/Banking Co-Society Deposit) | 5,000 | 10% | 10% |
| 194B | Winnings from lotteries, crossword puzzles, card games and other games of any sort | 10,000 | 30% | 30% |
| 194BB | Winnings from horse races | 10,000 | 30% | 30% |
| 194C | Payment to contractor/sub-contractor | Single Transaction: 30,000 & Aggregate of Transactions: 1,00,000 | 1% | 2% |
| 194D | Insurance commission | 15,000 | 5% | 10% |
| 194DA | Payment in respect of life insurance policy | 1,00,000 | 1% | 1% |
| 194E | Payment to non-resident sportsmen/sports association | – | 20% | 20% |
| 194EE | Payment in respect of deposit under National Savings scheme | 2,500 | 10% | 10% |
| 194F | Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India | – | 20% | 20% |
| 194G | Commission on sale of lottery tickets | 15,000 | 5% | 5% |
| 194H | Commission or brokerage | 15,000 | 5% | 5% |
| 194-I | Rent: | |||
| 194I(a) | Rent of Plant & Machinery | 2,40,000 | 2% | 2% |
| 194I(b) | Rent of Land or building or furniture or fitting | 2,40,000 | 10% | 10% |
| 194-IA | Payment on transfer of certain immovable property other than agricultural land | 50 Lakh | 1% | 1% |
| 194-IB | Payment of rent by individual or HUF not liable to tax audit | 50,000 per month | 5% | NA |
| 194-IC | Payment of monetary consideration under Joint Development Agreements | – | 10% | 10% |
| 194J(a) | Fees for technical services or towards royalty in the nature of consideration for sale, distribution or exhibition of cinematographic films; | 30,000 | 2% | 2% |
| 194J(b) | Fees for professional services | 30,000 | 10.00% | 10.00% |
| 194K | Income in respect of units payable to resident person | – | 10% | 10% |
| 194LA | Payment of compensation on acquisition of certain immovable property | 2,50,000 | 10% | 10% |
| 194LB | Payment of interest on infrastructure debt fund to Non Resident | – | 5% | 5% |
| 194LBA(1) | Business trust shall deduct tax while distributing, any interest received or receivable by it from a SPV or any income received from renting or leasing or letting out any real estate asset owned directly by it, to its unit holders. | – | 10% | 10% |
| 194LBB | Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)] | – | 10% | 10% |
| 194LBC | Income in respect of investment made in a securitisation trust (specified in Explanation of section115TCA) | 25% | 30% | |
| 194M | Payment of commission ( to a resident person by an Individual or a HUF who are not liable to deduct TDS under section 194C, 194H, or 194J. | 50 Lakh | 5% | 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:in excess of 1 Crore | 1 Crore | 2% | 2% |
| 194-O | Payment or credit of amount by the e-commerce operator to e-commerce participant | 5 Lakh | 1% | 1% |
You may also like:
TDS Declaration Form 2021-22
TDS Payment Due Date For March 2022
TDS Rate Chart FY 2022-23
You can download the TDS Rate Chart for FY 2021-2022 PDF by clicking on the link given below.