TDS Rate Chart For Assessment year 2021-22 or Financial Year 2020-21 & Threshold for no deduction of TDS
The Article contains TDS Rate Chart for Assessment year 2021-22 or Financial Year 2020-21. Refer TDS chart for AY 2021-22 in pdf download, TDS rate chart for FY 2020-21 pdf, TDS rate chart FY 2020-21, TDS rates for FY 2020-21, TDS rate chart pdf for your compliances.
In this article we shall discuss other compliances related to TDS like: TDS provisions Income Tax, Income tax Provision for TDS, RATE OF TAX DEDUCTION AT SOURCE (TDS), TIME OF DEPOSIT TDS, TDS Payment, TDS Return forms, DUE DATE OF SUBMISSION OF TDS RETURN, MODE OF FURNISHING RETURNS OF TDS, Certificate of TDS, Time limit for issuing TDS certificate, CONSEQUANCE ON DEFAULT IN TDS PROVISIONS
You May Also Refer: Corporate Compliance Calendar for the Month of April 2020
TDS Rate Chart For Assessment year 2021-22 or Financial Year 2020-21
|Section||Nature of Income||Rate of TDS applicable for the period||Threshold Limit for deduction tax|
|01-04-2020 to 13-05-2020||14-05-2020 to 31-03-2021|
|193||Interest on Securities||10%||7.50%||0|
|194||Dividend||10%||7.50%||Rs. 5,000 in case of Individual|
|194A||Interest other than interest on Securities||10%||7.50%||Rs. 5,000 to Rs. 50,000|
|194C||Payment to Contractors||1%: If deductee is an individual or HUF||0.75%: If deductee is an individual or HUF||Single payment : Rs. 30,000|
|2%: In any other case||1.50%: In any other case||Aggregate payment: Rs. 100,000|
|194D||Insurance Commission||10%: If deductee is domestic Company||7.50%: If deductee is domestic Company||15,000|
|5%: In any other case||3.75%: In any other case|
|194G||Commission and other payments on sale of lottery tickets||5%||3.75%||15,000|
|194H||Commission and Brokerage||5%||3.75%||15,000|
|194-I||Rent||10%: If rent pertains to hiring of immovable property||7.50%: If rent pertains to hiring of immovable property||2,40,000|
|2%: If rent pertains to hiring of plant and machinery||1.50%: If rent pertains to hiring of plant and machinery|
|194-IB||Payment of Rent by Certain Individuals or HUF||5%||3.75%||50,000|
|194J||Royalty and Fees for Professional or Technical Services||2%: If royalty is payable towards sale, distribution or exhibition of cinematographic films||1.50%: If royalty is payable towards sale, distribution or exhibition of cinematographic films||Director’s fees: Nil|
|2%: If recipient is engaged in business of operation of call Centre||1.50%: If recipient is engaged in business of operation of call Centre||Others: Rs. 30,000|
|2%: If sum is payable towards fees for technical services (other than professional services)||1.50%: If sum is payable towards fees for technical services (other than professional services)|
|10%: In all other cases||7.50%: In all other cases|
|194M||Payment to contractor, commission agent, broker or professional by certain Individuals or HUF||5%||3.75%||50 lakhs|
|194N||Cash withdrawal||2%: In general if cash withdrawn exceeds Rs. 1 crore||1.50%: In general if cash withdrawn exceeds Rs. 1 crore||If a person defaults in filing of return: 20 lakhs
If no default is made in filing of return: Rs 1 crore
|2%: If assessee has not furnished return for last 3 assessment years and cash withdrawn exceeds Rs. 20 lakhs but does not exceed Rs. 1 crore||1.50%: If assessee has not furnished return for last 3 assessment years and cash withdrawn exceeds Rs. 20 lakhs but does not exceed Rs. 1 crore|
|5%: If assessee has not furnished return for last 3 assessment years and cash withdrawn exceeds Rs. 1 crore||3.75%: If assessee has not furnished return for last 3 assessment years and cash withdrawn exceeds Rs. 1 crore|
Changes by Finance Act 2020
Following Amendements in TDS Provisions have been introduced by Finance Act 2020:
Amendment of Section 194 whereby TDS will now be deducted on complete dividend, as dividend distribution tax (DDT) has been abolished and dividend will now be taxed in the hands of shareholders/unit holders.
Amendment of Section 194J, whereby TDS Rate on Technical services to be reduced to 2% from current 10%.
Introduction of Section 194 O where by TDS to be deducted by E-Commerce operator for sale of goods or provision of service facilitated by it through its digital or electronic facility or platform.
Introduction of Section 194K where by person responsible for paying to a resident any income in respect of units of a Mutual Fund would deduct TDS.
Basic Steps involved in TDS Compliance
- DEDUCTION AT SOURCE UNDER SECTION 192 TO 196 OF IT ACT, 1961
- DEPOSIT OF TAX DEDUCTED AT SOURCE IN GOVERNMENT’S TREASURY WITHIN THE STIPULATED TIME
- SUBMISSION OF TDS RETURN WITHIN STIPULATED TIME
- TAG OR ADD OF CHALLAN TO THE TDS STATEMENT
- DOWNLOAD OF TDS CERTIFICATE FROM TRACES
RATE OF TAX DEDUCTION AT SOURCE
TDS Rate if PAN is not provided
If recipient not furnish his/its PAN Tax shall be deducted at the normal rate or at the rate of 20% , whichever is higher.
CERTIFICATE FOR LOWER DEDUCTION OF TDS OR NO DEDUCTION OF TDS
- On application made to Assessing officer, if he satisfied that the total income of recipient justifies the deduction of income tax at any lower rates or no deduction of income tax, the AO shall give him such certificate under section 197.
- The person responsible for paying the income shall deduct income tax at the rates specified in such certificate or deduct no tax as the case may be, mentioned in certificate issued under section 197.
- The person responsible for TDS, shall submit one copy before the Chief commissioner or commissioner of TDS.
EXEMPTION FROM TDS DEDUCTION
- Section 197A
- Amount of any income does not exceed the maximum amount which is not chargeable to tax
- An individual, resident in India has furnished Form 15G in duplicate to the deductor
- An individual, resident in India ( Senior Citizen) has furnished form 15H in duplicate to the deductor
- By Offshore Banking Unit from the interest paid to nonresident or a person not ordinarily resident in India
- From any payment to any person for or on behalf of the New pension system[10(44)]
- From such specified payment to such institution, association or body or class of institutions as may be notified by the Central Government whose income is unconditionally exempt under section 10 and who are not statutorily required to file return under section 139.
- Local Authority, SAARC fund, IRDA, Prime minister’s National relief fund, Recognised provident fund, ESIC fund etc,
TIME OF DEPOSIT TDS
|Taxpayer||Date of Deposit|
|Is office of the Govt. and tax is paid without production of income tax challan.||On the same day on which tax is deducted|
|Is office of the Govt. and tax is paid with production of income tax challan.||On or before 7 days from the end of month in which tax is deducted|
|Tax is deducted by a person other than office of Government||On or before 7 days from the end of month in which tax is deducted
Income paid or credited in the month of March: Tax should be deposited by April 30.
|Tax is deducted by a person other than office of Govt. and The AO has permitted quarterly deposit of tax deducted u/s 192, 194A, 194D and 194H||Tax Quarter ending:
June 30: By July 7
|Tax is deducted by a person u/s 194-IA (Challan – 26QB)
Tax is deducted u/s 194-IB (Challan- 26QC)
|Within 30 days from the last date of month in which tax is deducted|
How to make TDS Payment?
- TDS should be deposit in Challan No. 281
- TDS will have to deposit through internet banking.
- Indicate accurate TAN in challan
- Minor Head of Challan – 200 : TDS payable by tax payer
- Minor Head of Challan – 400: TDS Regular assessment raised by Income Tax Department.
- Amount of TDS, Interest, Late filing fee, penalty etc, should be separately shown while filing the challan
- Note down BSR code, Challan serial number, Date of payment, and amount of challan. This will help you in case challan is misplaced.
You May Also Refer: TCS Rate Chart For Assessment year 2021-22 or Financial Year 2020-21
TDS Return Forms
|Tax deduction from Salary under section 192||In form No. 24Q|
|Tax deduction when deductees are non-resident, foreign company, and persons who are resident but not ordinarily resident||In form No. 27Q|
|Tax deduction under section 194-IA||In form no. 26QB|
|Tax deduction under section 194-IB||In form no. 26QC|
|Tax deduction in any other case||In form no. 26QC|
Due Date of Submission of TDS Return
|Quarter ending||Due date of TDS Return|
How to Furnish Return of TDS
- In case where deductor is an office of Govt. or Principal officer of a company or is person who is required to get his account audited u/s 44AB in immediately preceding financial year or when the numbers of deductee are more than 20, then TDS quarterly return shall be submitted electronically.
- Other than above, any other deductor can submit TDS return either in paper format or electronically.
- Electronic return can be uploaded with Digital signature or verification of form 27A electronically
- Electronic return will be uploaded in FVU file
- FVU file can be generated through e TDS RPU (return prepare utility) which is available in
- In every quarter download latest e TDS RPU
- In e TDS return details of challan paid [ i.e. TDS amount, Interest, Fee, Other/penalty, BSR code, Challan serial No., Date of challan, Minor head] , details of deductee has to fill like section under which payment made, PAN, Name, Date of payment, Date deposit of TDS, amount paid, amount of TDS, Rate of TDS etc,.
Process of TDS return by the Income tax department through Traces
- After uploading of TDS return, IT department will process the return.
- Deductor has to registered in Traces site and create User ID and Password
- After uploading return, TDS return can be process without default. If TDS return is process with default, that means there is some error in return and there may be demand of short deduction, interest, late filing fee or penalty.
- To know details of process with defaults, justification report has to be downloading.
- If there is demand of short deduction or interest or late filing fee, then deductor has to deposit the demand under minor head 400 showing separately TDS, Interest, late fee or others penalty and add this challan to the respective quarterly statement.
- After Tag/add of challan, again TDS correction return has to be uploaded.
- When TDS return is process without default, that means TDS return process is completed. Thereafter TDS certificate has to download.
Certificate of TDS or TDS Certificate
|Form No. of Certificate||Type of Certificate||Time-limit for issue of certificate|
|16||From Salary||Annual, on or before 15 June|
|16B||U/S 194-IA||Within 15 days of furnishing challan 26QB|
|16C||U/S 194-IB||Within 15 days of furnishing challan 26QC|
|16A||Other than Salary||Within 15 days from the due date of furnishing quarterly TDS return|
Time limit for issuing Form 16A, TDS certificate in case of other than salary
|For the Quarter ending||Form No 16A|
Time limit for issuing Form 16, SALARY TDS CERTIFICATE
- In the TDS return of salary of quarter 4, data of annual salary paid and TDS deducted of employee’s have to fill.
- Form 16 is has into two parts:
- Part A of Form 16 contains information of employer and employee, assessment year, summary of TDS, challan details etc,
- Part B of Form 16 contains details of salary paid, other incomes, amount deducted under chapter VI- A etc,
CONSEQUANCE ON DEFAULT IN TDS
|Failure to deduct and pay tax deducted at source under section 192 to 196C [Sec 201(1A)]||Tax with interest shall be payable @ 1% from the date on which actually deductible and to the date on which actually deducted.|
|@ 1.5% from the date on which tax was actually deducted and to the date on which tax is actually paid.|
|Failure in furnish TDS return within stipulated time [U/S 234E]||Rs. 200 per day and shall not exceed the amount of tax deducted|
|Penalty for failure to furnish quarterly TDS return [271H]||Rs. 10000/- to Rs. 100000/-|
DISSALLOWANCE OF EXPENSES
U/S 40(a)(i):- 100% expenditure shall be not allowed to deduct from income chargeable under the “profits and gains from business or profession”, if any assessee fail to deduct tax at source or fail to deposit TDS deducted from interest, royalty, fee for technical services payable outside India, or in India to a non-resident, not being a company or a foreign company.
U/S 40(a)(ia):- 30% expenditure shall be not allowed to deduct from income chargeable under the “profits and gains from business or profession”, if any assessee fail to deduct tax at source or fail to deposit TDS deducted to a resident