1. Section 193 :- Interest on Securities or debentures.
Threshold limit for interest paid on debentures is Rs. 5,000. Threshold limit for interest on 7.75% GOI Savings (Taxable) Bonds 2018 is Rs. 10,000.
Note :- If No Pan or Invalid PAN, ( TDS Rate would be 20% )
2. Section 194 – interest on Dividend other than the dividend as referred to in Section 115-O
This amendment proposes to amend second proviso to section 194 of the Act to further provide that the provisions of section 194 i.e. TDS on dividend shall also not apply to dividend income credited or paid to a business trust by a special purpose vehicle or payment of dividend to any other person as may be notified. This means that no TDS needs to be deducted to AIF Category III also.
Note :- If No Pan or Invalid PAN, ( TDS Rate would be 20% )
3. Section 194B :- Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort.
✓. 30% in case of Resident Indians and Domestic Companies
✓ . 31.2% in case of Non Resident and Foreign Compan
Note :- If No Pan or Invalid PAN, ( TDS Rate would be 30% )
4. Section :- 194-BB :- Income by way of winnings from horse races.
✓. 30% in case of Resident Indians and Domestic Companies
✓ . 31.2% in case of Non Resident and Foreign Compan
Note :- If No Pan or Invalid PAN, ( TDS Rate would be 30% )
5. Section 194D :-
✓. 10%: If deductee is domestic Company
✓. 5%: In any other case
Note :- If No Pan or Invalid PAN, ( TDS Rate would be 20% )
6. Section 194G :- Commission on sale of lottery tickets.
Threshold Limit of Rs.15,000 on Commission, etc., on sale of lottery tickets, the 5%, 5.20%, 5% and 5.20% will be applicable on resident Indians, Non-Resident Indians, Domestic Companies, and Foreign Companies respectively.
Note :- If No Pan or Invalid PAN, ( TDS Rate would be 20% )
7. Section 194M :- Payment of commission, brokerage, contractual fee, professional fee to a resident person by an Individual or a HUF who are not liable to deduct TDS under section 194C, 194H, or 194J.
The threshold Limit of Rs.50,00,000 payment of commission, brokerage, contractual fee, professional fee to a resident person by an Individual or a HUF who are not liable to deduct 5% TDS by the resident Indians and Domestic Companies respectively.
Note :- If No Pan or Invalid PAN, ( TDS Rate would be 20% )
8. Section 194IA :- Transfer of certain immovable property other than agriculture land.
The Threshold Limit is Rs.50,00,000 for the payment on transfer of certain immovable property other than agricultural land 1% applicable on resident Indians and Domestic Companies respectively.
Note :- If No Pan or Invalid PAN, ( TDS Rate would be 20% ).
9. Section 194LA :- TDS on compensation for compulsory acquisition of immovable Property.
No tax will be deducted if payment is made in respect of any award or agreement which has been exempted from levy of income-tax u/s 96 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013.
Note :- If No Pan or Invalid PAN, ( TDS Rate would be 20% )
10. Section 194-A :- Interest other than interest on securities – Banks Time deposits, Recurring deposit and Deposit in Co-op Banks.
* Senior Citizen Rs. 50000.00
* Others Rs. 40000.00
Note :- If No Pan or Invalid PAN, ( TDS Rate would be 20% )
11. Section 194C :- Contract – Transporter not covered under 44AE
* Single payment : Rs. 30,000/-
* Aggregate payment: Rs. 75000/-
If individual – 1%
If company – 2%.
TDS is to be deducted at the rate of 2.0% if the payee is an AOP or BOI. TDS is not applicable on payment to Contractor engaged in plying, hiring or leasing of goods carriages, where such contractor owns 10 or less goods carriages during the Financial Year and furnishes amend definition of “work” to include purchase of raw material from associate of the customer. The word Associate shall have the same relations as stated u/s 40A(2)(b).
Note :- If No PAN or Invalid PAN, ( TDS Rate would be 20% )
12. Section 194 H :- Commission or brokerage.
The Threshold Limit is Rs.15,000 for the Commission or brokerage 5% TDS will be applicable on resident Indians and Domestic Companies respectively.
Note :- If No Pan or Invalid PAN, ( TDS Rate would be 20% )
13. Section 194 I :- Rent on plant and machinery or Land or building or furniture or fitting.
194-I(a) Plant & Machinery
194-I(b) Land or building or furniture or fitting.
Threshold limit :- Rs. 240000/-
✓. The Threshold Limit of Rs.2,40,000 for Rent on Plant & Machinery and Land Building, Furniture and Fittings.
✓. The 2% TDS in case of Rent on Plant & Machinery for resident Indians and Domestic Companies respectively.
✓. The 10% TDS in case of Rent on Land Building, Furniture and Fittings for resident Indians and Domestic Companies respectively.
Note :- If No Pan or Invalid PAN, ( TDS Rate would be 20% ).
14. Section 194-IB :- Payment of Rent by Individuals or HUF not liable for Tax Audit.
The Threshold Limit is Rs.50,000 per month for the Payment of rent by an individual or HUF not liable to tax audit and 5% TDS is applicable on resident Indians.
Note :- If No Pan or Invalid PAN, ( TDS Rate would be 20% ).
15. Section 194J :- Fees for professional or technical services.
The Threshold Limit of Rs.30,000 on Any sum paid by way of:
✓. Wherein, the payee is engaged in the business of the operation of Call Centre only, 2% TDS is applicable on resident Indians and Domestic Companies respectively.
✓. Fee for technical services, 2% TDS is applicable on resident Indians and Domestic Companies respectively.
✓. Professional royalty where such royalty is in the nature of consideration for sale, distribution or exhibition of cinematographic film 10% TDS is applicable on resident Indians and Domestic Companies respectively.
✓. In case of fees for any other professional services 10% TDS is applicable on resident Indians and Domestic Companies respectively.
✓. In case the payee fails to furnish PAN 20% TDS is applicable on resident Indians and Domestic Companies respectively.
Note :- If No Pan or Invalid PAN, ( TDS Rate would be 20% ).
16. Section 192 :- Salaries
Threshold limit :- As per Slab [Please note that no Change in Slab Rates have been introduced for FY 2021-22]
✓. Option to choose between new and old tax slab regime for salaried employees.
Note :- If No Pan or Invalid PAN, ( TDS Rate would be 30% ).
17. Section 194-N :- Cash withdrawal.
✓. If a person defaults in filing of return: 20 lakhs – 2%: In general if cash withdrawn exceeds Rs. 1 crore.
✓. If no default is made in filing of return: Rs 1 crore. – 2%: If assessee has not furnished return for last 3 assessment years and cash withdrawn exceeds Rs. 20 lakhs but does not exceed Rs. 1 crore
✓. 5%: If assessee has not furnished return for last 3 assessment years and cash withdrawn exceeds Rs. 1 crore
Note :- If No Pan or Invalid PAN, ( TDS Rate would be 20% ).
18. Section 194-Q :- Purchase of goods (applicable w.e.f 01.07.2021)
Budget Update :-
✓. A new section 194Q is proposed to be inserted to provide for deduction of TDS by person responsible for paying any sum to any resident for purchase of goods @ 0.1%.
The Threshold Limit is Rs.50,00,000 applicable when total sales or gross receipts or turnover from the business carried on exceeds Rs. 10 Crores during the financial year immediately preceding the financial year in which the purchase of goods is carried out.
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