TDS Rate Chart for FY 2020-21 Last Updated : 10 Jul 2020

The TDS rate on income depends on the salary of an individual and based on that it ranges between 10% to 30%. The TDS rates to be applicable on income for the current year is updated in the TDS rates chart for FY 2020-21.

TDS stands for Tax Deducted at Source. It is an indirect way of collecting income tax at source by the government of India. TDS is managed by the Central Board for Direct Taxes (CBTD). TDS is levied on incomes earned from incentives and commissions, dividends, payment earned for various services, sale, rent and purchase of immovable property, fixed deposits, etc. The deduction of TDS varies based on the source of your income and it ranges between 1% to 30%. The person on whom the responsibility of deducting tax is imposed has to deduct tax at source at appropriate rates and the deducted sum is deposited to the credit of government of India.

Read more on Income Tax Return, efiling Income Tax Return and How to file ITR in our articles

TDS Rate Chart for FY 2019-2020 (AY 2020-2021)

Section Nature of Payment TDS Rate for Individual/ HUF (Indian Resident)(in %) TDS Rate for Non-Resident Indian (NRI) in India (in %)
192 Salary payment As per the income tax category As per the income tax category
194B Income earned through the winnings from card games, lotteries, and/or other games 30 30
194BB Income through winnings from horse racing 30 30
194EE Payment towards National Savings Scheme (NSS) deposits 10 10
194F Payment towards repurchase of units by Unit Trust of India or Mutual Funds 20 20
194G Income that arises from lottery tickets sales commissions and/or other transactions 5 5
194LBB Investment fund which pays income to the unit holder [except for incomes that are exempt under Section 10 (23FBB)] 10 30
194LBC Income generated from investments in securitisation trust (as per Section 115TCA) 25 (for any other person – 30) 30

TDS Rates Chart for FY 2018-19

TDS rates chart for income tax on select categories for the financial year 2018-2019 are listed below. These rates are applicable for resident Indians.

Nature of payment % of TDS
Payment of salary (Section 192) Normal slab rate
Payment of accrued due of EPF Scheme, to Employees which is taxable in their hand (Section 192A) 10%
Interest on securities (Section 193) 10%
Dividend excluding the dividends mentioned in section 115-O (Section 194) 10%
Income received from interest other than “interest on securities (Section-194A) 10%
Income received from winning lotteries, crosswords, and games, etc. ( Section-194B / Section 194BB) 30%
Payment to contractors / sub-contractors (Section 194C) 2% for payments made to contractors who are not HUFs/individuals and 1% for payments made to contractors/sub-contractors who are HUFs/individuals
Insurance commission (Section-194D) 5%
Payment for life insurance policy (Section 194DA) 1%
Rent (Section 194-I)

For plant and machinery 2%

Land, furniture, fitting and furniture-10%

Payment on transfer of immovable property excluding agricultural land Section (194- IA) 1%

Income Tax TDS Rates Applicable for NRIs are Mentioned Below:

Nature of payment % of TDS
Payment of salary (Section 192) Normal slab rate
Payment of accumulated balance of provident fund (Section 192A) 10%
Income received from winnings lotteries, crossword puzzles, card games and other games of any sort (Section 194B) 30%
Income received from winnings from horse races (Section 194BB). 30%
Payment on deposit under National Savings scheme (section- 194EE) 20%
Payment on repurchase of Mutual Fund or Unit Trust of India ( Section 194F) 20%
Commission on sale of lottery tickets (Section 194G) 10%
Interest on infrastructure debt fund (Section 194LB) 5%
Interest income distribution by a Business Trust (Section 194LBS(3)) 30%
Distribution of income by an Investment Fund under Section 115UB of the Income Tax Act (Section 194LBB) 30%
Distribution of income by a Securitisation Trust under Section 115TCA of the Income Tax Act (Section 194LBC) 30%
Interest income from Indian company on funds borrowed in international currency (Section 194LC) 5%
Income by way of interest on certain government securities and rupee-denominated bonds (Section 194LD) 5%

TDS Deduction Rate

TDS deduction rates are dependent on your taxable income. TDS deduction rate for the financial year 2017-18 are mentioned below. These rates are applicable for general taxpayers, both men and women.

Taxable Income Tax Rate
Up to Rs. 2,50,000 Nil
Rs. 2,50,000 to Rs. 5,00,000 5%
Rs. 5,00,000 to Rs. 10,00,000 20%
Above Rs. 10,00,000 30%
  • A surcharge of 10% is applicable when total income is between Rs.50 lakh and Rs.1 crore, and 15% when total income is above Rs.1 crore.
  • 3% Education Cess.

TDS Rate on Salary

Any employer has the authority to deduct tax at source while making the actual payment to the employee. The employers deduct tax from salaries only at the time of payment. TDS is deducted if the total income of the employee is taxable. TDS will not be deducted if your total income is Rs. 2, 50,000. This amount is applicable for men and women below the age of 60 years. Normally, TDS deduction rate on salaryranges from 10% to 30%.

TDS Slab Rates

TDS deduction rates are different for senior citizens and super senior citizens. The below mentioned TDS slab rates are applicable for senior citizens aged between 60 to 80 years:

Income Slabs Tax Rate
Up to Rs. 3,00,000 Nil
Rs. 3,00,000 - Rs. 5,00,000 10%
Rs. 5,00,000 - Rs. 10,00,000 20%
Above Rs. 10,00,000 30%
  • A surcharge of 10% is applicable when total income is between Rs.50 lakh and Rs.1 crore, and 15% when total income is above Rs.1 crore.
  • 3% Education Cess.

For super senior citizens aged 80 years and above, the following rates are applicable:

Income Slabs Tax Rate
Up to Rs. 5,00,000 Nil
Rs. 5,00,000 - Rs. 10,00,000 20%
Above Rs. 10,00,000 30%
  • A surcharge of 15% when total income is above Rs.1 crore.
  • 3% Education Cess.

News About TDS Rates

  • TDS rates will be high in case cash withdrawals are large

    From 1 July 2020, Tax Deducted at Source (TDS) will be high for cash withdrawals in case individuals do not file Income Tax Returns (ITR). The new rule comes under the Finance Act 2020.

    The main aim of the move is to crack down on individuals who do not file ITR and want to deter cash transactions. Under the new rules, the TDS rate will be 2% for individuals who have not filed ITR for 3 years and wish to withdraw a sum of more than Rs.20 lakh and less than Rs.1 crore. The TDS rate will be 5% in case the sum that has been withdrawn is more than Rs.1 crore. The deductions will come under Section 194N of the Income Tax Act, 1961. TDS will apply for cash withdrawals that are more than Rs.20 lakh. However, if the PAN has not been provided, the TDS rate will be 20%. The threshold limit will be applicable for all the bank accounts with a specific bank. However, in case the accounts are held with different banks, the TDS that will be deducted will be applicable separately. The tax deductions will be applicable only if the specific thresholds have been exceeded.

  • First 10 days of May 2020 sees TDS revenue collection falls by 22%

    The total revenue collection from TDS (tax deducted at source) had fallen by 22% during 1 May and 10 May. This figure has indicated that huge layoffs and salary cuts have been in place during April, other than the staggering rental activities.

    The TDS collections had been Rs.44,110 crore from 1 May and 10 May, and this was against Rs.56,447 crore which had been mopped in the very same period during last year. The gross direct tax collections during 1 April to 10 May during this fiscal year had reduced by 14.6% at Rs.85,665 crore and this was Rs.1 trillion during the same period last year.

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