The government always focuses on improvising the regulations to give us a soothing breathe. The first thing that comes to our mind when we talk about saving money is TDS. Let’s know what modifications are made in the TDS rate chart for the financial year 2019-20 (AY 2020-21).
TDS Rate Chart For The FY ( 2019-2020)
In this article
|
Sl. No. |
Nature of Remittance |
Section |
Basic Cut-off (Rs.) |
TDS rate for | ||
|
Individual and HUF |
Other than Individual |
If the PAN CARD is not submitted | ||||
|
1 |
Employees’ earnings | 192 | Slab rate | Slab rate | Not applicable | 30% |
|
2 |
Premature remittance by PF Organization from EPF A/c (i.e., before 5 Years). |
192A |
50,000.00 |
10% |
Not applicable |
20% |
|
3 |
Remittance of Interest on the collateral proposed by the organization. | 193 |
10,000.00 |
10% |
10% |
20% |
|
4 |
Remission of the share as per Section 115O by Organization (i.e., Share on which the Dividend Distribution Tax is not paid) |
194
|
2,500.00 |
10% |
10% |
20% |
|
|
Remittance of Interest by |
|
40,000.00
(Non-Sr. Citizen 50,000.00
|
|
|
|
| 5 | bank | 194A | (Sr. Citizen) | 10% | 10% | 20% |
|
6 |
Remittance of Interest by others |
194A |
5,000.00 |
10% |
10% |
20% |
|
7 |
Remittance of the prize from
Wining from Lotteries by any person. |
194B |
10,000.00 |
30% |
30% |
30% |
|
8 |
Remittance of the prize from Wining from any Race competition by any person. |
194B |
10,000.00 TDS rate chart for
|
30% |
30% |
30% |
|
9 |
Remittance to Agreementors by any person. |
194C |
30,000.00 |
1% |
2% |
20% |
|
10 |
Remittance to Transporter covered u/s. 44E and submit the declaration in the prescribed format. (i.e., owning less than 10 goods carriages) |
194C |
– |
0 |
0 |
20% |
|
11 |
Remittance to Transporter not covered u/s. 44E(i.e., owning more than 10 goods carriages) |
194C |
30,000.00
|
1% |
2% |
20% |
|
12 |
Remittance of Insurance
Commission to agents by Insurance Organization. |
194D |
15,000.00 |
5% |
10% |
20% |
|
13 |
Remittance in respect of maturity for the Life Insurance Policy by Life Insurance Organization. |
194DA |
1 Lakh |
1% |
1% |
20% |
|
14 |
Remittance for the NRI sportsman or association by any person or organization |
194E |
– |
20% |
20% |
20% |
|
15 |
Remittance out from deposit under the National Saving
Scheme (NSS) |
194EE |
2,500.00 |
10% |
10% |
20% |
|
16 |
Remittance concerning the repurchase of units by Mutual Fund Companies. |
194F |
– |
20% |
20% |
20% |
|
17 |
Remittance of raffle commission |
194G |
15,000.00 |
5% |
5% |
20% |
|
18 |
Remittance of employment or financier. |
194H |
15,000.00 |
5% |
5% |
20% |
|
19 |
Remittance of any Lease on land, property, or furniture. |
194I |
240,000.00 |
10% |
10% |
20% |
|
20 |
Remittance of machinery equipment related to plants. |
194I |
240,000.00 |
2% |
2% |
20% |
| 21 | Lease payable by individual not covered. 1941 for land, property, furniture, and fittings | 194IB | 50,000.00 | 5% | 5% | 20% |
| 22 | Remittance of professional fees other than call centers. | 194J | 30,000.00 | 10% | 10% | 20% |
| 23 | Remittance of professional fees to the call center. | 194J | 30,000.00 | 2% | 2% | 20% |
| 24 | Compensation on the transfer of certain immovable property than agriculture land | 194LA | 250,000.00 | 10% | 10% | 20% |
TDS Rate Chart Of FY 2020-2021
TDS Or Tax Deduction At Source
The IT sector of India framed the Tax deduction at source( TDS). As per the taxation act, the main focus was to extract the tariff from the earning source. Thus, you’re required to deduct a selected share of tax before creating the remittance. The remittance includes wage, consummate fees, Lease, interest, etc.
It’s a range of advanced tax and needs to get subtracted. You can pay the TDS either by the physical or electronic way of remittance.
Who’s Meant To Deduct Tax At Source?
Every person in a global organization agency is chargeable for every transaction made. In the case of remittances created u/s 194A, 194C, 194H, 194I, and 194J, all assess except for individual and HUF. The accounts that don’t seem to be subject to Tax Audit below Section 44AB of the Income-tax Act, 1961, get a TDS deduction at supply throughout the preceding amount.
TDS Forms Under DiffeLease Units Or Return Filling Units
Mentioned below are the forms specified under difference units–
- Form 24Q for salaries,
- 26Q for except for salaries
- 26QB for Section 194IA
- 26QC for Section 194IB
- 26QD for Section 194M
- 27Q for Non-resident
- 27EQ for TCS
These units the seven forms to file TDS returns.
Grounds Under Which TDS Withdrawal Take Place
i. Whether you earn ample money or not, TDS withdrawal is compulsory. It gets levied on the interests you earn in your FD, Leaseal income, etc.
ii. A certain amount of money gets imposed on you every time you make any remittance.
iii. However, if by mistake, you devote more amount than specified towards the TDS withdrawal, you can easily get a TDS payback. For that, you need to fill the requisite payback form and submit.
Grounds Under Which TDS Withdrawal Gets Excluded
Apart from the transactions in the gratification of RBI, there are many other exclusions under TDS withdrawal. Let’s have a look-
- IT Payback Form
- The speculations you made in the co-operative society.
- The companies under the banking sector.
- Apart from all these, the interests you gained in- Indra Vikas Patra or KVP, Non-Resident Rupee account, The savings you’ve made in any cooperative society.
- Few organizations support a ‘no TDS’ or ‘nil.’
Under these grounds, you’re exempted from any TDS withdrawal.
How To File e-TDS Returns?
1. Visit the official IT website
2. Click ‘Login.’
3. Click on “Upload TDS.”
4. Fill in details
5. Get Returns
· Month
· Quarter
· The due date for remittance of TDS challan
· The due date for filing of return for all deductors
For Govt. sector
For other deductors
April
30th June
7th May
31st July
May
7th June
June
7th July
July
30th September
7th August
31st October
August
7th September
September
7th October
October
31st December
7th November
31st January
November
7th December
December
7th January
January
31st March
7th February
31st May
February
7th March
March
7th April
30th April
Step-5 You can get your extra tariff returns in two different ways, i.e., electronic and physical form.
Frequently Asked Questions
1. What is the TDS rate?
i. If you’re in the category of hourly paid servants or non-salaried, then bring a smile on your face. Your TDS withdrawal rate is presently decreased by 25%.
ii. However, it’s not implied on your Leaseal income, the salary you received, etc.
iii. In the present scenario, apart from GST, the TDS imposition is 2% on your transactions.
It ensures a cash flow of about Rs. 50,000 crore.
2. How is TDS withdrawal contemplated?
However, it’s not implied on the statement of the CGST, IGST, or SGST.
For example,
your friend lent Rs. 10,000 from you.
Calculating 18 percent GST on it, we’ve Rs. 1800.
Then, calculate TDS on it.
That is, 2% on Rs. 10,000, which is Rs. 200.
So, the total your friend will pay you is, Rs. 10,000 + Rs. 1800 + Rs. 200 = Rs. 12,000.
3. How is TDS on regular remittance calculated?
4. Who is at risk of deducting TDS?
5. How to get a discount on TDS deduction?
Apart from that, you can also keep a limit on it by submitting your PAN card credentials.
6. How am I able to get a TDS refund?
7. Are TDS and tax the same?
The basic distinction between TDS and tax is that TDS gets levied at the supply wherever financial gain gets generated beneath specific cases like regular remittance, interest from the bank, Lease, skilled fee, etc.
On the other hand, the tax gets levied on assets whose financial gain is on top of the tax limit in a very explicit amount.
8. What is that the minimum quantity for TDS deduction?
Bottom Line
After going through this article, you must be clear about the improvisations made in the tax rate chart for the FY 2019-20 (2020-21). So, make your calculations on your further transactions accordingly. Peace!
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