Income tax TDS & TCS rates effective from 01st April 2021

Income tax TDS & TCS rates effective from 01st April 2021 – Threshold and applicable TDS Rate for the Financial year 2021- 22: TaxGuru

The concept of TDS was introduced with an aim to collect tax from the very source of income. As per this concept, a person (deductor) who is liable to make payment of specified nature to any other person (deductee) shall deduct tax at source and remit the same into the account of the Central Government. The deductee from whose income tax has been deducted at source would be entitled to get credit of the amount so deducted on the basis of Form 26AS or TDS certificate issued by the deductor. The payment includes salary, commission, professional fees, interest, rent, etc.

TDS section, Threshold and applicable TDS Rate for the Financial year 2021- 22 as follows:-

Section as per income tax Act	Particulars	Threshold limit for TDS applicability	Applicable TDS rate %
192	Salary Income	Income Tax Slab	Slab rates
192	Salary Income	Income Tax Slab	Based on old and New Regime
192 A	EPF – Premature withdrawal	Rs 50,000	10%
192 A	EPF – Premature withdrawal	Rs 50,000	If no Pan, TDS @ 30%
193	Interest on Securites	Rs. 10,000	10%
193	Interest on Debentures	Rs 5,000	10%
194	Dividend	Rs 5,000	10%
	(Dividend other than listed companies)		(No TDS on Div Payouts by REITs / InvITs)

194 A	Interest other than on securities by banks / post office	Rs. 40,000	10%
194 A	Interest other than on securities by banks / post office	(Rs 50,000 for Senior Citzens)	10%
194 A	Interest other than on securities by others	Rs. 5,000	10%
194 B	Winnings from Lotteries / Puzzle / Game	Rs. 10,000	30%
194 BB	Winnings from Horse Race	Rs. 10,000	30%
194 C	Contractor-Single transaction-	Rs.30,000
	Individual/HUF		1%
	-Others		2%
194 C	Contractor- Consolidated payment transaction-	Rs.1,00,000
	Individual/HUF		1%
	-Others		2%
194 D	Payment of Insurance Commission	Rs. 15,000	5% (Individuals)
194 D	(Form 15G/H can be submitted)	Rs. 15,000	10% (Companies)
194DA	Payment in respect of Life Insurance Policy	Rs 1,00,000	5%
194E	Payment to non-resident sportsmen/sports association	–	20%
194 EE	Payment of NSS Deposits	Rs 2,500	10%
194 G	Commission on Sale of Lottery tickets	Rs 15,000	5%
194 H	Commission or Brokerage	Rs 15,000	5%
194 I	Rent of Land, Building or Furniture	Rs. 2,40,000	10%
194I	Rent of Plant & Machinery	Rs. 2,40,000	2%
194 IB	Rent	Rs 50,000 (per month)	5%
	(Tenant has to deduct TDS)
	(Individuals who are not liable to Tax Audit)
194 IA	Transfer of Immovable Property, other than Agricultural land	Rs. 50 lakh	1%
194IC	Payment of monetary consideration under Joint Development Agreements	–	10%
194J	Fees for professional or technical services	Rs 30,000	2% (or) 10%
194LA	Payment of compensation on acquisition of certain immovable property	Rs 2,50,000	10%
194 LB	Interest from Infrastructure Bond to NRI	NA	5%
194 LD	Interest on certain bonds and govt. Securities	NA	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:	> Rs 1cr	2%
194Q	Purchase of goods (applicable w.e.f 01.07.2021)	Rs 50 lakh	0.10%
206AB	TDS on non-filers of ITR at higher rates	–	5% or Twice the rates in force
206AB	(applicable w.e.f 01.07.2021)	–
194P	TDS on Senior Citizen above 75 Years (No ITR filing cases)	–	Slab Rates

TCS – Tax collected at Source – Rates effective from 01st April 2021

SECTION 206C (1)
TCS Deposit Challan Code	Goods & Services liable to TCS		TCS Rate (%)
6CA	Alcoholic liquor for human consumption		1
6CB	Timber obtained under Forest lease		2.5
6CC	Timber obtained by any mode other than under a forest lease		2.5
6CD	Any other forest produce not being timber or tendu leaves		2.5
6CE	Scrap		1
6C1	Tendu Leaves		5
6CJ	Minerals, being coal or lignite or iron ore		1
6CK	Bullion &Jewelry		Omitt. by Finance Act 2017 (w.e.f. 14-2017)
SECTION 206C (IC)
6CF	Parking Lot		2
6CG	Toll Plaza		2
6CH	Mining & Quarrying		2
SECTION 206C (IF)
6CL	Motor Vehicle (any mode of payment) (Seller, who receives any amount as consideration for sale of a motor vehicle of the value exceeding 10 lakh Rupees)		1
SECTION 206C (1E)
6CM	Cash Sale of any goods (other than bullion/jewelry)		Omitt. by Finance A 1- Act 2017 (w.e.f. 4-2017)
6CN	Providing any services (other than Ch-XV11-B)		Omitt. by Finance Act 2017 (w.e.f. 1- 4-2017)
SECTION 206C (IG)
6C0	Overseas Tour Program Package (Every person being a seller of an overseas tour program package, who receives any amount from a buyer, being the person who purchases such package)	5 (TCS in case of Non-Furnishing of PAN/Aadhar 10%)
6CP	Remittance under LRS for education loan taken from financial institution mentioned under section 80E(Amount or aggregate of the amounts in excess of 7 lakh rupees remitted by the buyer in a financial year, if the amount being remitted out is a loan obtained from any financial institution as defined in section 80E, for the purpose of pursuing any education)	0.50
6CQ	Remittance under LRS (for purpose other than for purchase of overseas tour package or for education loan taken from financial institution mentioned under section 80E (Person, being an authorised dealer, who receives an amount/aggregate of amounts exceeding 7 Lakh, for remittance out of India from a buyer, being a person remitting such amount out of India under the Liberalised Remittance Scheme of the Reserve Bank of India)	5 (TCS in case of Non-Furnishing of PAN/Aadhar 10%)
SECTION 206C (111)
6CR	Sale of Goods Every person, being a seller, who receives any amount as consideration for sale of any goods of the value or aggregate of such value exceeding 50 lakh rupees in any previous year, other than the goods being exported out of India or goods covered in sub-section (1) or sub-section (1F) or sub-section (1G) Budget Update	0. 1 (TCS in case of Non-Furnishing of PAN* / Aadhar 1%)*
	In case of transaction on which TDS u/s.194Q is applicable w.e.f 01/07/2021, then TCS u/s.206C(1H) not applicable