TDS Rate & Tax Provisions for F.Y. 2019-20 (A.Y.

2020-21)

25 Mar 2019

Every specified person is responsible for deducting the tax at source. The TDS compliance
of the financial year 2019-20 would be started from 1 April 2019, in light of the concern I
have prepared the brief about TDS and tax provision along with important details.
TDS stands for tax deducted at source. As per the Income Tax Act, any company or
person making a payment is required to deduct tax at source if the payment exceeds
certain threshold limits. TDS has to be deducted at the rates prescribed by the tax
department.
The company or person that makes the payment after deducting TDS is called a deductor
and the company or person receiving the payment is called the deductee. It is the
deductor’s responsibility to deduct TDS before making the payment and deposit the same
with the government. TDS is deducted irrespective of the mode of payment–cash, cheque
or credit–and is linked to the PAN of the deductor and deductee.
TDS is deducted on the following types of payments:
 Salaries
 Interest payable by Assessee
 Rent payments
 Consultation fees
 Professional fees

The Assessee is mandatorily required to deduct tax at source (“TDS”) in applicable cases
on various payments (by way of salaries, payment to vendors, rent, etc.) and deposit the
same with the Government, within the stipulated time. A short deduction of TDS or non-
deduction results in the Assessee being treated as an ‘assessee-in-default’ and
consequently, the Assessee is liable for payment of interest on TDS, penalty, etc. Also,
such payments are disallowed as a deduction under the Income-tax Act, 1961 where
there is a default in deduction and/or deposit of TDS.
1) Finance Act, 2019 has brought some minor changes in the TDS provisions. For
your ready reference, TDS rate chart for FY 2019-20 is provided below:
 194A the interest limit is enhanced from Rs. 10,000/- to Rs. 40,000/- in case payer is a
bank, co-operative society and post office. If the payee is senior citizen, the limit is Rs.
50,000.
 194-I the monetary limit enhanced to Rs. 2,40,000/- from Rs. 1,80,000/-. Accordingly, if
the rent payment does not exceed Rs. 2,40,000/- in a financial year, deductor is not
required to deduct the TDS.

A) Commonly used TDS Provision for payments made to persons resident in India
(Individuals, Firms, Companies, etc.):-
Section Nature of Payment for Threshold Individual / Others 15G-15H
Domestic Transactions Limit HUF

Rs. TDS Rate (%) Allowed

192 Salaries (Annexure-I) – Basis on – No

Slab

192A Premature withdrawal 50,000 10 – YES

from EPF

193 Interest on Securities/ 10,000 10 10 No

Debentures

Interest (Banks, co- 40,000/ 10 10 YES

194A operative society and post 50000
office)/ For Senior Citizen
Rs. 50000

Interest (Others) 5,000 10 10 YES

Contractor – Single 30,000 1 2 No

Transaction
194C
Contractor – During the 1,00,000 1 2 No
F.Y.

Transporter (44AE) – – – –
declaration with PAN

194H Commission / Brokerage 15,000 5 5 No

Rent of Land and Building 2,40,000 10 10 YES

– F&F
194I
Rent of Plant / Machinery / 2,40,000 2 2 YES
Equipment

194IB Rent by Individual / HUF 50000/PM 5 – No

(wef 01.06.2017)

194IA Transfer of certain 50,00,000 1 1 No

immovable property other
than agriculture land

Professional Fees / 30,000 10 10 No

Technical Fees /Director
fees/ royalty
 194J Payment to Call Centre 30,000 2 2 No
Operator
(w.e.f. 01.06.2017)
Conditions for being a resident senior citizen:
(i) Individual of 60 years or more at any time during the year
(ii) An individual is said to be resident in any previous year if he satisfies any one of the
following conditions:
a. He stays in India in the relevant previous year for a period of 182 days or,
b. He stays in India for at least 60 days during the relevant previous year and at least 365
days for 4 years preceding that previous year.
 194A the interest limit is enhanced from Rs. 10,000/- to Rs. 40,000/- in case of payer is
bank, co-operative society and post office. If the payee is senior citizen, the limit is Rs.
50,000.
 u/s194-I the monetary limit enhanced to Rs. 2,40,000/- from Rs. 1,80,000/-. Accordingly, if
the rent payment does not exceed Rs. 2,40,000/- in a financial year, deductor is not require
to deduct the TDS.

B) All TDS Provision for payments made to persons resident/ non resident in India
(Individuals, Firms, Companies, etc.)

Section Nature of Payment Threshold Individual Others 15G- Deduction At

for Domestic Limit / HUF 15H the time of
Transactions

Rs. TDS Rate (%) Allowed

192 Salaries (Annexure-I) – Basis on – No payment

(resident & non Slab
resident)

192A Premature 50,000 10 – YES payment

withdrawal from EPF

193 Interest on Securities/ 10,000 10 10 No Credit or

Debentures payment
(earlier)

194 Dividends (other than – 10 10 YES payment

listed Companies)

Interest (Banks)/ For 40,000 10 10 YES Credit or

194A Senior Citizen Rs. payment
50000 (earlier)
 Interest (Others) 5,000 10 10 YES Credit or
payment
(earlier)

194B Winning from 10,000 30 30 No payment

Lotteries
(resident & non
resident)

194BB Winning from Horse 10,000 30 30 No payment

Race
(resident & non
resident)

Contractor – Single 30,000 1 2 No Credit or

Transaction payment
194C (earlier)

Contractor – During 1,00,000 1 2 No Credit or

the F.Y. payment
(earlier)

Transporter (44AE) – – – –
declaration with PAN

194D Insurance 15,000 5 10 YES Credit or

Commission payment
(earlier)

194DA Life insurance Policy 1,00,000 1 1 YES payment

194E Non-Resident 20 20 No Credit or

Sportsmen or Sports payment
Association (earlier)

194EE NSS 2,500 10 10 YES payment

(resident & non
resident)

194F Repurchase Units by 20 20 No Credit or

MFs payment
(resident & non (earlier)
resident)

194G Commission – Lottery 15,000 5 5 No Credit or

(resident & non payment
resident) (earlier)

194H Commission / 15,000 5 5 No Credit or

Brokerage payment
(earlier)
 Rent of Land and 2,40,000 10 10 YES Credit or
Building – F&F payment
194I (earlier)

Rent of Plant / 2,40,000 2 2 YES Credit or

Machinery / payment
Equipment (earlier)

194IB Rent by Individual / 50000/PM 5 – No Credit or

HUF (wef 01.06.2017) payment
(earlier)

194IA Transfer of certain 50,00,000 1 1 No Credit or

immovable property payment
other than agriculture (earlier)
land

Professional Fees / 30,000 10 10 No Credit or

Technical Fees payment
/Director fees/ royalty (earlier)
194J
Payment to Call 30,000 2 2 No Credit or
Centre Operator payment
(earlier)

Compensation on 2,50,000 10 10 No payment

transfer of certain
immovable property
other than
194LA agricultural land

Immovable Property – – – –
(TDS exempted under
RFCTLARR Act
(w.e.f. 01.04.2017)

194LB Income by way of 5 5 No Credit or

interest from from payment
infrastructure debt (earlier)
fund(non- resident)

194LC Income by way of 5 5 No Credit or

interest by an Indian payment
specified company to (earlier)
a non-resident /
foreign company on
foreign currency
approved loan / long-
term infrastructure
bonds from outside
India (applicable
from July 1, 2012)
194LD Interest on certain 5 5 No Credit or
bonds and Govt. payment
Securities (from 01- (earlier)
06-2013)
(non resident)

195 Other sum (payable

to non Resident)

a) Income in respect of 20 20 No
investment made by a
Non-resident Indian
Citizen

b) Income by way of 10 10 No
long-term capital gains
referred to in Section
115E in case of a Non- Credit or
resident Indian Citizen payment
(earlier)
c) Income by way of 10 10 No
long-term capital gains
referred to in sub-
clause (iii) of clause (c)
of sub-section (1)
of Section 193

d) Income by way of 15 15 No
short-term capital gains
referred to in Section
111A

e) Any other income by 20 20 No

way of long-term
capital gains [not being
long-term capital gains
referred to in clauses
(33), (36) and (38)
of Section 10]

f) Income by way of 20 20 No
interest payable by
Government or an
Indian concern on
money borrowed or
debt incurred by
Government or the
Indian concern in
foreign currency (not
being income by way
of interest referred to
in Section
 194LB or Section
194LC

Any other income 30 30 No

Notes:
a) No TDS on Goods & Service Tax: As per circular no. 23/2017 dated 19.07.2017of
CBEC, TDS is not applicable on Goods and Service Tax (GST) where GST is shown
separately.
b) No Surcharge, Health & Education Cess is not deductible on payments made to
residents, other than salary
c) Deduction of TDS at a lower rate or non-deduction of TDS:
d) Deduction of TDS at a lower rate:
In case where a certificate for deduction of TDS at a lower rate u/s. 197 is obtained from
the customer/ vendor, it should be confirmed whether the amount of payment is within the
limit and valid for the period specified in the certificate u/s. 197 along with the certificate
no. using the ‘197 Validation’ facility on the TRACES website.
ii) Non-deduction of TDS:
Please note that Form No. 15G can be accepted by the Assessee only when the total
interest amount payable is less than the minimum exemption limit, which is Rs. 2,50,000
for financial year 2018-19. In case the same exceeds the above limit, then TDS is to be
deducted as per the applicable provisions.
In case of Form No. 15H, the same is not acceptable if the total taxable income of the
customer/ vendor including the interest income after claiming deductions under chapter
VI(A) exceeds the minimum exemption limit, which is Rs. 3,00,000 for senior citizen/ Rs.
5,00,000 for super senior citizen for financial year 2018-19.
e) TDS at higher rate: If a person fails to furnish PAN to the Assessee whose receipts
are subject to TDS, then, the TDS is to be deducted at higher of the following rates”
i) The rates in force or
ii) 20%
Exemption for deduction of TDS at a lower rate or non-deduction of TDS as discussed in
Point 1-C is not admissible in case of Invalid PAN/ No-PAN.
f) TDS on Good Transport: TDS shall be applicable on payment to transporters, i.e.,
contractors in the business of plying, hiring or leasing goods carriages. However, TDS
exemption will be available to transporter owning 10 (ten) or less goods carriage at any
time during the previous year. For claiming such exemption, transporter would also need
to furnish a declaration to the Assessee along with a copy of PAN. For transporter not
covered above, TDS is to be deducted at normal rates as given in above table.
 g) TDS on interest u/s 194A paid to resident senior citizen: Finance Act, 2018 has
increased the threshold limit u/s section 194A of the Income Tax Act, 1961 for “resident”
Senior Citizens to Rs. 50,000/-.
2) Due dates for deposit/remittance of TDS to Central Government are as under:
Other than Section 194IA/194IB
 For the months of April to February (Monthly) – on or before 7th day from the end of the
month in which tax is deducted.
 For the month of March – 30th April
Section 194IA/194IB
 For any month – on or before 30th day from the end of the month in which tax is deducted.
3) Interest on non-deduction/ non-payment of TDS:
As per Sec. 201(1A) of the Income-tax Act, 1961, if the Assessee does not deduct the
whole or any part of the TDS or after deducting fails to pay the TDS as required by or
under the Act, then the Assessee is liable to pay simple interest on the amount of such
TDS, for every month or part of a month, at the rate of:
 1% from the date on which such TDS was deductible up to the date on which such TDS is
deducted; and
 1.5% from the date on which such TDS was deducted up to the date on which such TDS is
paid

4) Late filing Levy:

As per Sec 234E of Income tax Act 1961, where a person fails to deliver or cause to be
delivered a statement within the time prescribed in sub-section (3) of section 200 or the
proviso to sub-section (3) of section 206C, he shall be liable to pay, by way of fee, a sum
of two hundred rupees for every day during which the failure continues, maximum to
the amount of tax deducted.
5) Due dates for filing of e-TDS returns & issue of TDS certificates:
a) In respect of any other TDS (other than TDS u/s. 194-IA):

Quarter Period Due Date for filing Due Date for issuing TDS certificate
of e-TDS Return [in Form no. 16A]

Q-1 1st April to 30th June 31st July 15th August

Q-2 1st July to 30th September 31st October 15th November

Q-3 1st October to 31st 31st January 15th February

December

Q-4 1st January to 31st March 31st May 15th June

b) In respect of TDS u/s 194IA
i) A challan-cum-statement in Form No.26QB is to be filed within 30 days from the end of
the month in which the deduction is made
ii) TDS certificate in Form no.16B is to be issued to the payee within 15 days from due
date of furnishing statement in Form no. 26QB
c) In respect of TDS u/s 194IB
i) A challan-cum-statement in Form No.26QC is to be filed within 30 days from the end of
the month in which the deduction is made
ii) TDS certificate in Form no.16C is to be issued to the payee within 15 days from due
date of furnishing statement in Form no. 26QC
Annexure-I
TAX SLABS FOR FY 2019-20 AY 2019-20
a) Income Tax Slab for Individual Tax Payers & HUF (Less Than 60 Years Old)

Income Tax Slab Tax Rate

Income up to Rs 2,50,000 No tax

Income from Rs 2,50,000 – Rs 5,00,000 5%

Income from Rs 5,00,000– 10,00,000 20%

Income more than Rs 10,00,000 30%

Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.
Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.
Health & Education Cess: 4% of Income Tax.
b) Income Tax Slab for Senior Citizens (60 Years Old or More but Less than 80 Years
Old)

Income Tax Slab Tax Rate

Income up to Rs 3,00,000 No tax

Income from Rs 3,00,000 – Rs 5,00,000 5%

Income from Rs 5,00,000– 10,00,000 20%

Income more than Rs 10,00,000 30%

Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.
Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.
Health & Education Cess: 4% of Income Tax.
c) Income Tax Slab for Senior Citizens (80 Years Old or More)

Income Tax Slab Tax Rate

Income up to Rs 5,00,000 No tax

Income from Rs 5,00,000– 10,00,000 20%

Income more than Rs 10,00,000 30%

Surcharge: 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.
Surcharge: 15% of income tax, where the total income exceeds Rs.1 crore.
Health & Education Cess: 4% of Income Tax