Reduction in Rate of TDS & TCS

To provide more funds at the disposal of taxpayers for dealing with the economic situation arising out of COVID-19 pandemic, rates of TDS and TCS have been reduced by 25% for following non-salaried specified payments.

New TDS Rate 

S. NoSection of the Income-tax ActNature of PaymentExisting Rate of TDSRevised Rate
1.193Interest on Securities10%7.5%
3.194 AInterest other than interest on securities10%7.5%
4.194CPayment of Contractors and sub-contractors1% (individual/HU F) 2% (others)0.75% (individual/H UF) 1.5% (others)
5.194DInsurance Commission5%3.75%
6.194DAPayment in respect of life insurance policy5%3.75%
7.194EEPayments in respect of deposits under National Savings Scheme10%7.5%
8.194FPayments on account of re-purchase of Units by Mutual Funds or UTI20%15%
9.194GCommission, prize etc., on sale of lottery tickets5%3.75%
10.194HCommission or brokerage5%3.75%
11.194-I(a)Rent for plant and machinery2%1.5%
12.194-I(b)Rent for immovable property10%7.5%
13.194-IAPayment for acquisition of immovable property1%0.75%
14.194-IBPayment of rent by individual or HUF5%3.75%
15.194-ICPayment for Joint Development Agreements10%7.5%
16.194JFee for Professional or Technical Services (FTS), Royalty, etc.2% (FTS, certain royalties, call centre) 10% (others)1.5% (FTS, certain royalties, call centre) 7.5% (others)
17.194KPayment of dividend by Mutual Funds10%7.5%
18.194LAPayment of Compensation on acquisition of immovable property10%7.5%
19.194LBA(1)Payment of income by Business trust10%7.5%
20.194LBB(i)Payment of income by Investment fund10%7.5%
21.194LBC(1)Income by securitisation trust25% (Individual/HU F) 30% (Others)18.75% (Individual/H UF) 22.5% (Others)
22.194MPayment to commission, brokerage etc. by Individual and HUF5%3.75%
23.194-0TDS on e-commerce participants1% (w.e.f. 1.10.2020)0.075%


New TCS Rate

S. NoSection of the Income-tax ActNature of PaymentExisting Rate of TDSRevised Rate
1.a206C(1)Sale of
1.b(a) Tendu Leaves5%3.75%
1.c(b)Timber obtained under a forest lease2.5%1.875%
1.d(c) timber obtained by any other mode2.5%1.875%
1.e(d) Any other forest produce not being timber/tendu leaves2.5%1.875%
1.f(e) scrap1%0.75%
1.g(f) Minerals, being coal or lignite or iron ore1%0.75%
2.a206C(1C)Grant of license, lease, etc. of (a) Parking lot2%1.5%
2.b(b) Toll Plaza2%1.5%
2.c(c) Mining and quarrying2%1.5%
3.206C(1F)Sale of motor vehicle above 10 lakhs1%0.75%
4.206C(1H)Sale of any other goods0.1% (w.e.f 01.10.2020)0.075%


Source: Income Tax India