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. No | Section of the Income-tax Act | Nature of Payment | Existing Rate of TDS | Revised Rate |
|---|---|---|---|---|
| 1. | 193 | Interest on Securities | 10% | 7.5% |
| 2. | 194 | Dividend | 10% | 7.5% |
| 3. | 194 A | Interest other than interest on securities | 10% | 7.5% |
| 4. | 194C | Payment of Contractors and sub-contractors | 1% (individual/HU F) 2% (others) | 0.75% (individual/H UF) 1.5% (others) |
| 5. | 194D | Insurance Commission | 5% | 3.75% |
| 6. | 194DA | Payment in respect of life insurance policy | 5% | 3.75% |
| 7. | 194EE | Payments in respect of deposits under National Savings Scheme | 10% | 7.5% |
| 8. | 194F | Payments on account of re-purchase of Units by Mutual Funds or UTI | 20% | 15% |
| 9. | 194G | Commission, prize etc., on sale of lottery tickets | 5% | 3.75% |
| 10. | 194H | Commission or brokerage | 5% | 3.75% |
| 11. | 194-I(a) | Rent for plant and machinery | 2% | 1.5% |
| 12. | 194-I(b) | Rent for immovable property | 10% | 7.5% |
| 13. | 194-IA | Payment for acquisition of immovable property | 1% | 0.75% |
| 14. | 194-IB | Payment of rent by individual or HUF | 5% | 3.75% |
| 15. | 194-IC | Payment for Joint Development Agreements | 10% | 7.5% |
| 16. | 194J | Fee 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. | 194K | Payment of dividend by Mutual Funds | 10% | 7.5% |
| 18. | 194LA | Payment of Compensation on acquisition of immovable property | 10% | 7.5% |
| 19. | 194LBA(1) | Payment of income by Business trust | 10% | 7.5% |
| 20. | 194LBB(i) | Payment of income by Investment fund | 10% | 7.5% |
| 21. | 194LBC(1) | Income by securitisation trust | 25% (Individual/HU F) 30% (Others) | 18.75% (Individual/H UF) 22.5% (Others) |
| 22. | 194M | Payment to commission, brokerage etc. by Individual and HUF | 5% | 3.75% |
| 23. | 194-0 | TDS on e-commerce participants | 1% (w.e.f. 1.10.2020) | 0.075% |
New TCS Rate
| S. No | Section of the Income-tax Act | Nature of Payment | Existing Rate of TDS | Revised Rate |
|---|---|---|---|---|
| 1.a | 206C(1) | Sale of | ||
| 1.b | (a) Tendu Leaves | 5% | 3.75% | |
| 1.c | (b)Timber obtained under a forest lease | 2.5% | 1.875% | |
| 1.d | (c) timber obtained by any other mode | 2.5% | 1.875% | |
| 1.e | (d) Any other forest produce not being timber/tendu leaves | 2.5% | 1.875% | |
| 1.f | (e) scrap | 1% | 0.75% | |
| 1.g | (f) Minerals, being coal or lignite or iron ore | 1% | 0.75% | |
| 2.a | 206C(1C) | Grant of license, lease, etc. of (a) Parking lot | 2% | 1.5% |
| 2.b | (b) Toll Plaza | 2% | 1.5% | |
| 2.c | (c) Mining and quarrying | 2% | 1.5% | |
| 3. | 206C(1F) | Sale of motor vehicle above 10 lakhs | 1% | 0.75% |
| 4. | 206C(1H) | Sale of any other goods | 0.1% (w.e.f 01.10.2020) | 0.075% |
Source: Income Tax India