TDS Rate Chart for FY 2019-2020(AY 2020-2021) Last Updated : 21 Sep 2019

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 2018-19 and AY 2019-20.
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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 artilces

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

  • Small Businesses, Agents and Employees get TDS Relief

    Arun Jaitley announced an overhaul of India’s tax deducted at source system. This will help the small taxpayers, contractors, employees and commission agent with cut in taxes. He wished to rationalise the TDS provision. TDS on payment of Life insurance policies will be reduced to 1% from 2%. TDS on payment of NSS will be reduced to 10%, insurance commission TDS at 5% and TDS on brokerage reduced to 5%. TDS for EPF has been increased to Rs.50,000. TDS threshold for winnings from horse race has been increased to Rs.10,000. TDS on payment to contractors will be Rs.1 lakh, TDS on payment on acquisition of immovable property has been increased to Rs.2,50,000. TDS on sale of lottery has been increased to Rs.15,000 and on commission on brokerage to Rs.15,000. TDS for threshold in case of insurance commission has been reduced by Rs.5,000 and is now Rs.15,000.

    8 March 2016

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