TDS Rate Chart for FY 2019-20

With Budget 2019 only two major amendments were made with regard to TDS:

Under section 194A the limit for TDS deduction with regard to interest from bank and post office was increased from Rs. 10000 to Rs. 40000.
TDS rate for section 194DA i.e. Payment in respect of life insurance policy has been increased from 1% to 5%.
Under section 194I the limit for TDS deduction in case of rent was increased from 1,80,000 to 2,40,000.

Two new section’s have also been introduced:

New section 194M has been inserted which says, if an individual/ HUF pays to a resident any sum in nature of contract of professional service but such payment is not covered u/s 194C and 194J i.e. payment for personal expense then such individual/ HUF shall deduct TDS @5% if the total amount paid to such resident during an year exceeds Rs. 50 lakh.
New section 194N has been inserted which says, if any person withdraws in a year Rs. 1 crore from a bank, co-operative society or post office then that bank, co-operative society or post office will have to deduct TDS @2% on amount exceeding 1 crore.

Now let’s take a look at the TDS rate which are most useful:

Section	Particulars	Limit	Rate of TDS	Applicability for Individual and HUF
192	TDS on Salary Deduction needs to be made only at the time of payment and not at the time of credit	If the taxable income of employee exceeds Rs. 5,00,000/-	At the average rate calculated on his income	Always even if not liable for Audit
194A	Interest other than interest on securities	For bank or post office: Rs. 50,000 – senior citizen Rs. 40,000 – Other than senior citizen For other than Bank or post office: Rs. 5,000	10%	If the turnover or receipt in previous financial year exceed Rs. 1 crore for business and Rs. 50 lakh for professional even if not liable for audit
194C	Payment to contractor	Rs. 30,000 for single contract Rs. 1 lakh aggregate amount of all contract paid or credited to one contractor during a financial year	1% if payment to individual/ HUF 2% payment to others	If they were liable for Audit under section 44AB of the income tax Act
194H	Commission or brokerage	Rs. 15000	5%	If the turnover or receipt in previous financial year exceed Rs. 1 crore for business and Rs. 50 lakh for professional even if not liable for audit
194I	Rent of Plant & machinery or Building and furniture	Rs. 2,40,000 per year	2% for rent of plant and machinery 10% for rent of building or furniture and fitting	If the turnover or receipt in previous financial year exceed Rs. 1 crore for business and Rs. 50 lakh for professional even if not liable for audit
194IA	Payment for Purchase of land other than rural agricultural land	Rs. 50,00,00 total consideration*	1% of total consideration	Applicable without any limit (TDS can be deducted by using PAN number)
194IB	Rent	Rs. 50,000 per month	5%	Applicable to individual and HUF not liable for Audit (TDS can be deducted by using PAN number)
194IC	TDS on JDA agreement	No Limit TDS will be deducted when consideration is not in kind	10%
194J	Payment for Professional, Technical fess or Royalty fees	Rs. 30,000 per year	10% 2% in case the payee is call centre	If the turnover or receipt in previous financial year exceed Rs. 1 crore for business and Rs. 50 lakh for professional even if not liable for audit
194M	Payment for any contract or professional fees other than those covered under 194C and 194J	Total amount paid during a year exceeds Rs. 50 lakh	5%	Applicable even if not liable for audit and paid for personal expense

*Total consideration will include any amount paid in name of membership fee, car parking fee, maintenance fee or advance which is incidental to transfer of property.

Provided that no deduction shall be made u/s 194C or 194J if payment is made for personal purpose i.e. paying to contractor for constructing residential house or paying professional fees to doctor for personal health etc.

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