The government in India charges different types of taxes – both direct and indirect, which are used for the country’s development. While it is the responsibility of individuals to pay the due taxes on time, many of them fail to do so. This is where the concept of Tax Deducted at Source (TDS) came into existence.
TDS tax aims to collect the tax at the very source of income. It means that the person (deductor) who is liable to make a payment to another individual (deductee) shall deduct TDS in advance and then pay it to the Central Government’s account.
Depending on the tax-related rules and changed guidelines, TDS rates keep on changing. If you want to know more about TDS rates for FY 2021-2022, this complete guide covering TDS rate charts is meant for you.
More about TDS rate chart for FY 2021-22 and Budget 2021
As defined in the Income Tax Act, every deductor of TDS has to deduct this tax at a rate specified under various Sections of the Income Tax law in India. The TDS section list not only defines different TDS rates but also covers the corresponding nature of payment and threshold limits. Every year, various changes in the TDS rates are introduced at the time of budget presentation under Direct Tax Proposals.
In Budget 2021, various changes have been made in relation to the collection of TDS, including a new section of TDS/TCS for non-filer of tax returns and TDS on purchase of goods.
TDS rates for FY 2021-2022
The following table details the TDS rate chart for FY 2021-22 and AY 2022-23:
| Section | About the Payment | Threshold | TDS Rate for Individual/HUF |
| 192 | Salary | As per the Income Tax Declaration submitted by the employee | |
| 192A | Premature withdrawal from EPF account | Rs. 50,000 | 10% |
| 193 | Interest on securities | Rs. 10,000 | 10% |
| 194 | Dividends | Rs. 5,000 | 10% |
| 194A | Interest from banks | Rs. 40,000 | 10% |
| 194A | For Senior Citizens | Rs. 50,000 | 10% |
| 194C | Single contractor payment | Rs. 30,000 | 1% |
| 194C | Aggregate contractor payment | Rs. 1,00,000 | 1% |
| 194D | Insurance commission (15G and 15H allowed) | Rs. 15,000 | 5% |
| 194DA | Life insurance policy | Rs. 1,00,000 | 1% |
| 194EE | NSS | Rs. 2,500 | 10% |
| 194F | Repurchase units of mutual funds | 20% | |
| 194G | Commission from lottery | Rs. 15,000 | 5% |
| 194H | Commission / Brokerage | Rs. 15,000 | 5% |
| 194I(a) | Rent of Machinery / Plant / Equipment | Rs. 2,40,000 | 2% |
| 194I(b) | Rent of Land / Furniture / Building | Rs. 2,40,000 | 10% |
| 194I | Transfer of immovable property except agricultural land | Rs. 50,00,000 | 1% |
| 194IB | Rent by individual / HUF (w.e.f. June 1, 2017) | Rs. 50,000 | 5% |
| 194IC | Payment under agreements applicable for the financial year 2017-18 onwards | 10% | |
| 194J (a) | Fees-tech services, royalty for sale, call centre, etc. | Rs. 30,000 | 2% |
| 194J (b) | Fee for professional service or royalty etc. | Rs. 30,000 | 10% |
| 194LA | Compensation on transfer of immovable property except agricultural land | Rs. 2,50,000 | 10% |
| 194K | Dividend payment by mutual funds | Rs. 5,000 | 10% |
| 194LB | Infrastructure debt fund income (non-resident) | 5% | |
| 194LBA | Income from business trust (applicable from Oct 1, 2014) | 10% | |
| 194LBA | Income from business trust to non-resident | 5% | |
| 194LD | Income on certain government securities and bonds | 5% | |
| 194M | Commission or brokerage payment by individual and HUF | Rs. 50,00,000 | 5% |
| 194N | Cash withdrawal of more than Rs. 1 cr in previous year from one or more accounts with a lending institution | Rs. 1,00,000,00 | 2% |
| 194O | TDS on e-commerce | Rs. 5,00,000 | 1% |
| 194Q | Goods purchase | Rs. 50,00,000 | 0.10% |
TDS rate chart 2021-22 for Indian residents (other than a company)
| Section | Nature of Payment | TDS Rate |
| 192 | Salary payment | 10% |
| 193 | Interest on securities | 10% |
| 194A | Interest income | 10% |
| 194 | Dividend payment | 10% |
| 194B | Income from lottery/games | 30% |
| 194C | Payment to contractor (Individual / HUF) | 1% |
| 194C | Payment to contractor – others | 2% |
| 194BB | Income from winning horse race | 30% |
| 194DA | Payment of an amount towards a life insurance plan | 5% |
| 194D | Insurance commission | 5% |
| 194F | Payment of repurchasing unit by UTI or a mutual fund | 20% |
| 194EE | Payment under NSS | 5% |
| 194G | Commission payment | 5% |
| 194-I | Rent on plant / machinery | 2% |
| 194-I | Rent on land, building, furniture, or fitting | 10% |
| 194H | Brokerage | 5% |
| 194-IC | Payment under joint development agreement | 10% |
| 194-IA | Payment on transfer of immovable property other than agricultural land | 1% |
| 194-IB | Rent payment by an individual or HUF | 5% |
| 194J | Fee for professional services, commission to a director, etc. | 10% |
| 194J | Not sharing patent for technical services – sale or distribution | 2% |
| 194LBA(1) | Income distributed to unitholders by a business trust | 10% |
| 194LA | Payment on certain immovable property | 10% |
| 194K | Income on units of a mutual fund | 10% |
| 194LBC | Income from securitisation fund investment (individuals/HUF) | 25% |
| 194P | Tax deductions by lending institutions before making payments | Tax on total income |
TDS rate chart for FY 2021-22 for Non-Resident Indians (Other Than A Company)
| Section | Nature of Payment | TDS Chart FY 21-22 |
| 192 | Salary payment | 10% |
| 194G | Commission | 5% |
| 192A | Premature EPF withdrawal | 10% |
| 194B | Lottery income | 30% |
| 194BB | Income from horse racing | 30% |
| 194F | Payment from repurchasing unit by UTI | 20% |
| 194E | Payment to non-resident sportsman | 20% |
| 194LB | Payment on compensation of immovable property | 5% |
| 194EE | Payment to a person under NSS | 10% |
| 194LBA(2) | Interest receivable to a business | 5% |
| 194LB | Income from investment fund to a unit holder | 30% |
| 194LBA(3) | Income from rent or real estate assets owned by business trust | 30% |
| 194LC | Interest for land borrowed by an Indian company in foreign currency | 5% |
| 194LC | Interest payable against long term bonds | 4% |
| 194LBC | Income from securitisation fund investment | 30% |
| 194LD | Interest payment on the bond to a foreign investor | 5% |
| 196B | Income from offshore fund units | 10% |
| 196C | Income from foreign currency bonds / GDR of Indian company | 10% |
| 195 | Income through LTCG | 15% |
| 195 | Any other income related to NRI | 30% |
