TDS Rates for FY 2021-2022: All You Need to Know

TDS rates for FY 2021-2022 - Paytm for Business

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:

SectionAbout the PaymentThresholdTDS Rate for Individual/HUF
As per the Income Tax Declaration submitted by the employee
192APremature withdrawal from EPF accountRs. 50,00010%
193Interest on securities Rs. 10,000 10%
194Dividends Rs. 5,00010%
194AInterest from banksRs. 40,00010%
194AFor Senior CitizensRs. 50,00010%
194CSingle contractor paymentRs. 30,0001%
194CAggregate contractor paymentRs. 1,00,0001%
194DInsurance commission (15G and 15H allowed)Rs. 15,0005%
194DALife insurance policyRs. 1,00,0001%
194EENSSRs. 2,50010%
194FRepurchase units of mutual funds
194GCommission from lotteryRs. 15,0005%
194HCommission / BrokerageRs. 15,0005%
194I(a)Rent of Machinery / Plant / EquipmentRs. 2,40,0002%
194I(b)Rent of Land / Furniture / BuildingRs. 2,40,00010%
194ITransfer of immovable property except agricultural landRs. 50,00,0001%
194IBRent by individual / HUF (w.e.f. June 1, 2017)Rs. 50,000 5%
194ICPayment under agreements applicable for the financial year 2017-18 onwards
194J (a)Fees-tech services, royalty for sale, call centre, etc.Rs. 30,0002%
194J (b)Fee for professional service or royalty etc. Rs. 30,000 10%
194LACompensation on transfer of immovable property except agricultural landRs. 2,50,00010%
194KDividend payment by mutual fundsRs. 5,00010%
194LBInfrastructure debt fund income (non-resident)
194LBAIncome from business trust (applicable from Oct 1, 2014)
194LBAIncome from business trust to non-resident
194LDIncome on certain government securities and bonds
194MCommission or brokerage payment by individual and HUFRs. 50,00,0005%
194NCash withdrawal of more than Rs. 1 cr in previous year from one or more accounts with a lending institutionRs. 1,00,000,002%
194OTDS on e-commerce Rs. 5,00,0001%
194QGoods purchaseRs. 50,00,0000.10%

TDS rate chart 2021-22 for Indian residents (other than a company)

SectionNature of Payment TDS Rate 
192Salary payment10%
193Interest on securities10%
194AInterest income10%
194Dividend payment10%
194BIncome from lottery/games30%
194CPayment to contractor (Individual / HUF)1%
194CPayment to contractor – others2%
194BBIncome from winning horse race30%
194DAPayment of an amount towards a life insurance plan5%
194DInsurance commission5%
194FPayment of repurchasing unit by UTI or a mutual fund20%
194EEPayment under NSS5%
194GCommission payment5%
194-IRent on plant / machinery2%
194-IRent on land, building, furniture, or fitting10%
194-ICPayment under joint development agreement10%
194-IAPayment on transfer of immovable property other than agricultural land1%
194-IBRent payment by an individual or HUF5%
194JFee for professional services, commission to a director, etc.10%
194JNot sharing patent for technical services – sale or distribution2%
194LBA(1)Income distributed to unitholders by a business trust10%
194LAPayment on certain immovable property10%
194KIncome on units of a mutual fund10%
194LBCIncome from securitisation fund investment (individuals/HUF)25%
194PTax 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)

SectionNature of PaymentTDS Chart FY 21-22
192Salary payment10%
192APremature EPF withdrawal10%
194BLottery income30%
194BBIncome from horse racing30%
194FPayment from repurchasing unit by UTI20%
194EPayment to non-resident sportsman20%
194LBPayment on compensation of immovable property5%
194EEPayment to a person under NSS10%
194LBA(2)Interest receivable to a business5%
194LBIncome from investment fund to a unit holder30%
194LBA(3)Income from rent or real estate assets owned by business trust30%
194LCInterest for land borrowed by an Indian company in foreign currency5%
194LCInterest payable against long term bonds4%
194LBCIncome from securitisation fund investment30%
194LDInterest payment on the bond to a foreign investor5%
196BIncome from offshore fund units10%
196CIncome from foreign currency bonds / GDR of Indian company10%
195Income through LTCG15%
195Any other income related to NRI30%


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