CA Pratibha Goyal | Feb 22, 2021 |

TDS Rate Chart Financial Year 2021-22 or Assessment Year 2022-23

The Article contains TDS Rate Chart Financial Year 2021-22 or Assessment Year 2022-23. 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, CONSEQUENCE ON DEFAULT IN TDS PROVISIONS are discussed here.

Section	Nature of Income	Rate of TDS applicable for the period	Threshold Limit for deduction tax
192	Salaries	As per Slab [Please note that no Change in Slab Rates have been introduced for FY 2021-22]	As per Slab [Please note that no Change in Slab Rates have been introduced for FY 2021-22]
192A	Payment of accumulated balance of provident fund which is taxable in the hands of an employee	10% in case of Resident and 10.40% in case of Non-Resident.	50000
193	Interest on Securities	10%	0
194	Dividend	10%	Rs. 5,000 in case of Individual
194A	Interest other than interest on Securities	10%	Rs. 40,000 – Bank Deposit/ Post Office Deposit/ Banking Co-Society Deposit Rs. 50,000 – Senior Citizen Rs. 5,000 – Securites Other than Above
194B	Income by way of winnings from lotteries, crossword puzzles,card games and other games of any sort	30% in case of Resident Indians and Domestic Companies	Rs. 10,000
194B		31.2% in case of Non Resident and Foriegn Companies	Rs. 10,000
194BB	Income by way of winnings from horse races	30% in case of Resident Indians and Domestic Companies	Rs. 10,000
194BB	Income by way of winnings from horse races	31.2% in case of Non Resident and Foriegn Companies	Rs. 10,000
194C	Payment to Contractors	1%: If deductee is an Indian individual or HUF	Single payment : Rs. 30,000
194C	Payment to Contractors	2%: In any other case of Indian Resident	Aggregate payment: Rs. 100,000
194D	Insurance Commission	10%: If deductee is domestic Company	15,000
194D	Insurance Commission	5%: In any other case	15,000
194E	Payment to non-resident sportsmen/ sports association	20% + Cess + Surcharge (If Applicable)
194EE	Payment in respect of deposit under National Savings scheme	Resident Indians & Domestic Companies – 10%	Rs. 2500
194EE	Payment in respect of deposit under National Savings scheme	Non Resident – 10% + Cess + Surcharge (If Applicable)	Rs. 2500
194EE	Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India	Resident Indians & Domestic Companies – 20%
194EE		Non Resident – 20% + Cess + Surcharge (If Applicable)
194G	Commission and other payments on sale of lottery tickets	5%	15,000
194H	Commission and Brokerage	5%	15,000
194-I	Rent	10%: If rent pertains to hiring of immovable property	2,40,000
194-I	Rent	2%: If rent pertains to hiring of plant and machinery	2,40,000
194-IA	Payment on transfer of certain immovable property other than agricultural land	1%	50,00,000
194-IB	Payment of Rent by Individuals or HUF not liable for Tax Audit	5%	50,000
194J	Royalty and Fees for Professional or Technical Services	2%: 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	Others: Rs. 30,000
		2%: If sum is payable towards fees for technical services (other than professional services)
		10%: In all other cases
194LA	Payment of compensation on Compulsory acquisition of immovable property	10% in case of Resident Individuals and Domestic Companies	2,50,000
194LB	Payment of interest on infrastructure debt fund	5.20% in case of Non-resident Indians and foreign company
194LBA(1)	Distribution of, any interest received or receivable from SPV or any income received from renting or leasing or letting out any real estate asset owned directly by Business trust	10% in case of Resident Individuals and Domestic Companies
194LBA(2)	Distribution of, any interest received or receivable from SPV by Business trust	5.20% in case of Non-resident Indians and foreign company
194LBA(3)	Distribution of, any income received from renting or leasing or letting out any real estate asset owned directly by Business trust	31.20% in case of Non-resident Indians and 41.60% for foreign company
194LBB	Investment fund paying an income to a unit holder	10% in case of Resident Individuals and Domestic Companies
		31.20% in case of Non-resident Indians
		41.60% in case of foreign company
194LBB	Investment fund paying an income to a unit holder	25% in case of Resident Individuals
		31.20% in case of Non-resident Indians
		10% in case of Domestic Companies
		41.60% in case of foreign company
194M	Payment to contractor, commission agent, broker or professional by certain Individuals or HUF	5%	5000000
194N	Cash withdrawal	2%: In general if cash withdrawn exceeds Rs. 1 crore	If a person defaults in filing of return: 20 lakhs
		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	If no default is made in filing of return: Rs 1 crore
		5%: If assessee has not furnished return for last 3 assessment years and cash withdrawn exceeds Rs. 1 crore
194O	E-Commerce Operator For Sale of Goods & Services	1% in case of Resident Indians and Domestic Companies	5,00,000
194Q	TDS on Purchase of Goods	0.10%	The Threshold Limit is Rs. 50,00,000 applicable when total sales or gross receipts or turnover from the business carried on exceeds Rs. 10 Crores during the financial year immediately preceding the financial year inwhich the purchase of goods is carried out.
206AB	TDS on non-filers of ITR	Higher of 5% or twice the rate specified in the relevant provision of the Act; or twice the rate or rates in force	This section shall not apply where the tax is required to be deducted under sections 192, 192A, 194B,194BB, 194LBC or 194N of the Act.

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 deductedIncome 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 September 30: By October 7 December 31: By January 7 March 31: By April 30.
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.

TDS Return Forms

Situation	Form
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
Jun-30	Jul-31
Sep-30	Oct-31
Dec-31	Jan-31
Mar-31	May-31

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
- https://www.tin-nsdl.com/services/etds-etcs/etds-rpu.html
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
Jun-30	Aug-15
Sep-30	Nov-15
Dec-31	Feb-15
Mar-31	Jun-15

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

Default	Penalty
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

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Name: CA Pratibha Goyal

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CA Pratibha Goyal is Chartered Accountant qualified in 2016, is a Member of The Institute of Chartered Accountants of India having wide experience in the field of Auditing, Taxation, ROC, GST and Secretarial matters etc. She has written over a thousand articles & has made several videos on topics related to Auditing & Taxation. As a Speaker she has delivered various sessions on various branches of NIRC of ICAI.

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