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Check The New TDS & TCS Rates Applicable From April 1, 2021
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TDS and TCS rates for interest income, dividend income, rent payments, and other non-salary payments were lowered by 25% by the government in May 2020. The rates of Tax Deduction at Source (TDS) for the following non-salaried specified payments rendered to residents have been lowered for the term from 14th May, 2020 to 31st March, 2021, in order to provide more funds at the taxpayers' hand to cope with the economic position resulting from the COVID-19 pandemic. Here are the TDS and TCS rates applicable from April 1, 2020.
TDS - Tax Deducted at source, rates applicable from April 1, 2021
| Nature of payment | Section | TDS rate w.e.f. April 1, 2021 |
|---|---|---|
| Payment of accumulated balance of provident fund which is taxable in the hands of an employee. | 192A | 10% |
| Interest on securities and debentures | 193 | 10% |
| Interest other than on securities by banks / post office | 194A | 10% |
| Income by way of interest other than "Interest on securities" | 194A | 10% |
| Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort | 194B | 30% |
| Income by way of winnings from horse races | 194BB | 30% |
| Insurance commission | 194D | 5% |
| Payment in respect of life insurance policy | 194DA | 5% |
| Payment in respect of deposit under National Savings scheme | 194EE | 10% |
| Commission, etc., on sale of lottery tickets | 194G | 5% |
| Commission or brokerage | 194H | 5% |
| Rent of Plant & Machinery, Land or building or furniture or fitting | 194I | 2% |
| Payment on transfer of certain immovable property other than agricultural land | 194IA | 1% |
| Payment of rent by individual or HUF not liable to tax audit | 194IB | 5% |
| Payment of more than Rs 50 lakh to professional, commission, or brokerage | 194M | 5% |
| Cash withdrawals of more than Rs 20 lakh or Rs 1 crore, as case may be | 194N | 2% |
| Payment of Professional Fees etc. | 194J | 2%(FTS, certain royalties, call centre) 10%(others) |
| Purchase of goods (applicable w.e.f 01.07.2021) | 194Q | 0.10% |
| Rent for plant and machinery | 194- I(a) | 2% |
| Rent for immovable property | 194-I(b) | 10% |
TCS - Tax collected at Source - Rates effective from 01st April 2021
| Nature of receipts | Section | Rates in % |
|---|---|---|
| Sale of tendu leaves | 206C(1) | 5% |
| Sale of Timber obtained under a forest lease | 206C(1) | 2.50% |
| Sale of timber obtained by any other mode | 206C(1) | 2.50% |
| Sale of Any other forest produce not being timber/tendu leaves | 206C(1) | 2.50% |
| Sale of scrap | 206C(1) | 1% |
| Sale of Minerals, being coal or lignite or iron ore | 206C(1) | 1% |
| Grant of the license, lease, etc. of Parking lot | 206C(1C) | 2% |
| Grant of license, lease, etc. of Toll Plaza | 206C(1C) | 2% |
| Grant of license, lease, etc. of Mining and quarrying | 206C(1C) | 2% |
| Sale of motor vehicle above 10 lakhs | 206C(1F) | 1% |
| Sale of any other goods | 206C(1H) | 0.10% |
Source: Income Tax Department