Our Hon. Finance Minister & CBDT in its press release dated 13th May 20 has reduced almost all non salary TDS rates by 25% which means every non salary resident person will have more liquid cash in its hand. Most importantly this deduction will remain in force starting from 14th May 20 to 31st March 21. To summarize this press release below table contains most known TDS sections which will give an brief idea about Existing TDS Rates and concessional TDS rates applicable now onwards :
Sr. No.
|
TDS Section
|
Nature of Payment
|
Threshold Limit
|
TDS up to 13th May 20
for Resident
|
TDS wef 14th May 20
for Resident
|
1
|
192
|
Payment of Salary
|
No change
|
No change
|
|
2
|
192A
|
Payment of accumulated
balance of Provident Fund
|
50,000
|
No change
|
No change
|
3
|
193(a) (b) (c )* &
(d)
|
Interest on securities
|
10000*
|
10.00%
|
7.50%
|
4
|
194
|
Dividend (introduced
from april 20)
|
5,000
|
10.00%
|
7.50%
|
5
|
194A
|
Interest on other
Interest on Securities.
A. Engaged in business of banking. B. Senior Citizen C. Others |
A. 40000/-
B. 50000/- C. 5000/- |
10.00%
|
7.50%
|
6
|
194B
|
Income by way of
winnings from lotteries, crossword puzzles, card games and other games of any
sort
|
10,000
|
No change
|
No change
|
7
|
194BB
|
Income by way of
winnings from horse races
|
10,000
|
No change
|
No change
|
8
|
194C
|
Payment to Contractors
/ sub contractors
|
30000 per contract or
100000 during the year.
|
1 / 2%
|
0.75% / 1.50%
|
9
|
194D
|
Payment of Insurance
commission
|
15,000
|
5.00%
|
3.75%
|
10
|
194DA
|
Payment in respect of
life insurance policy w.e.f. 1/9/2019, the tax shall be deducted on the
amount of income comprised in insurance pay-out
|
1,00,000
|
5.00%
|
3.75%
|
11
|
194E
|
Payment to
non-resident sportsmen /sports association
|
No change
|
No change
|
|
12
|
194EE
|
Payment in respect of
deposit under National Savings scheme
|
2,500
|
10.00%
|
7.50%
|
13
|
194F
|
Payment on account of
repurchase of unit by Mutual Fund or Unit Trust of India
|
20.00%
|
15.00%
|
|
14
|
194G
|
Commission, etc., on
sale of lottery tickets
|
15,000
|
5.00%
|
3.75%
|
15
|
194H
|
TDS on Commission or
brokerage
|
15,000
|
5.00%
|
3.75%
|
16
|
194I
|
Rent
A. Plant & Machinery B. Land or Building |
2,40,000
|
A. - 2.00%
B. - 10.00% |
A. - 1.50%
B. - 7.50% |
17
|
194IA
|
Payment on transfer of
certain immovable property other than agricultural land
|
50,00,000
|
1.00%
|
0.75%
|
18
|
194IB
|
Payment of rent by
individual or HUF who is not liable to tax audit (limit mentioned per month
or part of the month)
|
50,000
|
5.00%
|
3.75%
|
19
|
194IC
|
Payment of monetary
consideration under Joint Development Agreements
|
10.00%
|
7.50%
|
|
20
|
194J
|
Payment for
professional fees or for Technical services or royalty etc.
A. FTS, certain royalty, Call Centres B. Others |
30,000
|
A. - 2.00%
B. - 10.00% |
A. - 1.50%
B. - 7.50% |
21
|
194K
|
Payment of any income
in respect of
a) Units of a Mutual Fund as per Section 10(23D) b) Units from the administrator c) Units from specified company (This Section is inserted by Finance Act, 2020 which is applicable from 01/04/20) |
10.00%
|
7.50%
|
|
22
|
194LA
|
Payment of
compensation on acquisition of certain immovable property
|
2,50,000
|
10.00%
|
7.50%
|
23
|
194LBA(1)
|
Payment of Income by
Business Trust
|
10.00%
|
7.50%
|
|
24
|
194M
|
Payment of commission or (not being insurance commission), brokerage, contractual fee, professional
fee to a resident person by an Individual or a HUF who are not liable to
deduct TDS under section 194C, 194H, or 194J.
Tax shall be deducted wef 1/09/19. |
50,00,000
|
5.00%
|
3.75%
|
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