TDS Rates are prescribed by the Income Tax Department every year. Every payer/ deductor needs to know the applicable rate before deducting TDS. In case of any mistake, the payer ends up with additional liability of short deduction. TDS Rates are as per the Nature of Payment. Following are the TDS Rates for FY 2020-21:
| Section | Nature of Payment | Threshold (Rs.) | TDS Rates | ||
Individual & HUF | Other than Individual & HUF | Invalid/ No PAN | |||
| 192 | Salary Payments | 2,50,000 | Slab Rate | NA | 30% |
| 192A | Premature Withdrawal from EPF A/c (i.e. before 5 Years). | 50,000 | 10% | NA | 30% |
| 193 | Payment of Interest on Securities by company | 10,000 | 10% | 10% | 20% |
| 194 | Payment of Dividend on Equity Shares of Domestic Company | 5,000 | 10% | 10% | 20% |
| 194A | Payment of Interest by bank | 40,000 50,000 (Senior Citizen) | 10% | 10% | 20% |
| 194A | Payment of Interest by others | 5,000 | 10% | 10% | 20% |
| 194B | Payment of prize from Winning from Lotteries by any person | 10,000 | 30% | 30% | 30% |
| 194BB | Payment of prize from Winning from Horse Race by any person | 10,000 | 30% | 30% | 30% |
| 194C | Payment to Contractors / Sub-Contractors by any person | 30,000 (Single Bill) or 1,00,000 (Aggregate Bills in the year) | 1% | 2% | 20% |
| 194C | Payment to Transporter Covered u/s. 44E and submit declaration in prescribed format | - | - | - | 20% |
| 194C | Payment to Transporter not covered u/s. 44E | 30,000 (Single Bill) or 1,00,000 (Aggregate Bills in the year) | 1% | 2% | 20% |
| 194D | Payment of Insurance Commission to agents by Insurance Company | 15,000 | 5% | 10% | 20% |
| 194DA | Payment in respect of maturity of Life Insurance Policy by Life Insurance Company | 1,00,000 | 5% | 5% | 20% |
| 194E | Payment to NRI sportsman or association by any person or organization | - | 20% | 20% | 20% |
| 194EE | Payment out of deposit under National Saving Scheme (NSS) | 2,500 | 10% | 10% | 20% |
| 194F | Payment with respect to re-purchase of units by Mutual Fund Companies | - | 20% | 20% | 20% |
| 194G | Payment of Lottery Commission | 15,000 | 5% | 5% | 20% |
| 194H | Payment of commission or Brokerage | 15,000 | 5% | 5% | 20% |
| 194I | Payment of rent on land, building, furniture and fittings | 2,40,000 | 10% | 10% | 20% |
| 194I | Payment of rent on plant, machinery or equipments | 2,40,000 | 2% | 2% | 20% |
| 194IA | Payment made on account of transfer of immovable property other than agriculture land | 50,00,000 | 1% | 1% | 20% |
| 194IB | Rent payable by individual not covered u/s. 194I for land, building, furniture and fittings | 50,000 per month | 5% | 5% | 20% |
| 194IC | Payment of monetary consideration under Joint Development Agreements | - | 10% | 10% | 20% |
| 194J | Payment of Professional Fees other than call centers and Technical Fees | 30,000 | 10% | 10% | 20% |
| 194J | Payment of Technical Fees | 30,000 | 2% | 2% | 20% |
| 194J | Payment of Professional Fees to call centers | 30,000 | 2% | 2% | 20% |
| 194K | Payment of Income from Units of a Mutual Fund | 5,000 | 10% | 10% | 20% |
| 194LA | Compensation on transfer of certain immovable property than Agriculture Land | 2,50,000 | 10% | 10% | 20% |
| 194M | Payment to Resident contractors & professionals by an Individual or a HUF who are not liable to deduct TDS u/s 194C, 194H, or 194J. | 50,00,000 | 5% | 5% | 20% |
| 194N | Cash withdrawal in excess of Rs. 1 crore 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 | 1,00,00,000 | 2% | 2% | 20% |
| 194O | E-Commerce operator for sale of goods or provision of service facilitated by it through its digital or electronic facility or platform | 5,00,000 | 1% | 1% | 20% |
| Any Other Income | - | 10% | 10% | 20% | |