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

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

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

TDS Rates effective from 01st April 2021

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 ActParticularsThreshold limit for TDS applicabilityApplicable TDS rate %
192Salary IncomeIncome Tax SlabSlab rates
Based on old   and New Regime
192 AEPF – Premature withdrawalRs 50,00010%
If no Pan, TDS @ 30%
193Interest on SecuritesRs. 10,00010%
193Interest on DebenturesRs 5,00010%
194DividendRs 5,00010%
(Dividend other than listed companies)(No TDS on Div Payouts by REITs / InvITs)
194 AInterest other than on securities by banks / post officeRs. 40,00010%
(Rs 50,000 for Senior Citzens)
194 AInterest other than on securities by othersRs. 5,00010%
194 BWinnings from Lotteries / Puzzle / GameRs. 10,00030%
194 BBWinnings from Horse RaceRs. 10,00030%
194 CContractor-Single transaction-Rs.30,000
194 CContractor- Consolidated payment transaction-Rs.1,00,000
194 DPayment of Insurance CommissionRs. 15,0005% (Individuals)
(Form 15G/H can be submitted)10% (Companies)
194DAPayment in respect of Life Insurance PolicyRs 1,00,0005%
194EPayment to non-resident sportsmen/sports association20%
194 EEPayment of NSS DepositsRs 2,50010%
194 GCommission on Sale of Lottery ticketsRs 15,0005%
194 HCommission or BrokerageRs 15,0005%
194 IRent of Land, Building or FurnitureRs. 2,40,00010%
194IRent of Plant & MachineryRs. 2,40,0002%
194 IBRentRs 50,000 (per month)5%
(Tenant has to deduct TDS)
(Individuals who are not liable to Tax Audit)
194 IATransfer of Immovable Property, other than Agricultural landRs. 50 lakh1%
194ICPayment of monetary consideration under Joint Development Agreements10%
194JFees for professional or technical servicesRs 30,0002% (or) 10%
194LAPayment of compensation on acquisition of certain immovable propertyRs 2,50,00010%
194 LBInterest from Infrastructure Bond to NRINA5%
194 LDInterest on certain bonds and govt. SecuritiesNA5%
194NCash 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 1cr2%
194QPurchase of goods (applicable w.e.f 01.07.2021)Rs 50 lakh0.10%
206ABTDS on non-filers of ITR at higher rates5% or Twice the rates in force
(applicable w.e.f 01.07.2021)
194PTDS on Senior Citizen above 75 Years (No ITR filing cases)Slab Rates
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TCS – Tax collected at Source – Rates effective from 01st April 2021

SECTION 206C (1)
TCS Deposit Challan CodeGoods & Services liable to TCSTCS Rate (%)
6CAAlcoholic liquor for human consumption1
6CBTimber obtained under Forest lease2.5
6CCTimber obtained by any mode other than under a forest lease2.5
6CDAny other forest produce not being timber or tendu leaves2.5
6C1Tendu Leaves5
6CJMinerals, being coal or lignite or iron ore1
6CKBullion &JewelryOmitt. by Finance Act 2017 (w.e.f. 1­4-2017)
6CFParking Lot2
6CGToll Plaza2
6CHMining & Quarrying2
6CLMotor 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
6CMCash Sale of any goods (other than bullion/jewelry)Omitt. by Finance A 1- Act 2017 (w.e.f. 4-2017)
6CNProviding any services (other than Ch-XV11-B)Omitt. by Finance Act 2017 (w.e.f. 1- 4-2017)
6C0Overseas 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%)
6CPRemittance 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
6CQRemittance 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)

Sale of GoodsEvery 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



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