Check The New TDS & TCS Rates Applicable From April 1, 2021

TDS and TCS rates for interest income, dividend income, rent payments, and other non-salary payments were lowered by 25% by the government in May 2020. The rates of Tax Deduction at Source (TDS) for the following non-salaried specified payments rendered to residents have been lowered for the term from 14th May, 2020 to 31st March, 2021, in order to provide more funds at the taxpayers' hand to cope with the economic position resulting from the COVID-19 pandemic. Here are the TDS and TCS rates applicable from April 1, 2020.

TDS - Tax Deducted at source, rates applicable from April 1, 2021

Nature of payment	Section	TDS rate w.e.f. April 1, 2021
Payment of accumulated balance of provident fund which is taxable in the hands of an employee.	192A	10%
Interest on securities and debentures	193	10%
Interest other than on securities by banks / post office	194A	10%
Income by way of interest other than "Interest on securities"	194A	10%
Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort	194B	30%
Income by way of winnings from horse races	194BB	30%
Insurance commission	194D	5%
Payment in respect of life insurance policy	194DA	5%
Payment in respect of deposit under National Savings scheme	194EE	10%
Commission, etc., on sale of lottery tickets	194G	5%
Commission or brokerage	194H	5%
Rent of Plant & Machinery, Land or building or furniture or fitting	194I	2%
Payment on transfer of certain immovable property other than agricultural land	194IA	1%
Payment of rent by individual or HUF not liable to tax audit	194IB	5%
Payment of more than Rs 50 lakh to professional, commission, or brokerage	194M	5%
Cash withdrawals of more than Rs 20 lakh or Rs 1 crore, as case may be	194N	2%
Payment of Professional Fees etc.	194J	2%(FTS, certain royalties, call centre) 10%(others)
Purchase of goods (applicable w.e.f 01.07.2021)	194Q	0.10%
Rent for plant and machinery	194- I(a)	2%
Rent for immovable property	194-I(b)	10%

TCS - Tax collected at Source - Rates effective from 01st April 2021

Nature of receipts	Section	Rates in %
Sale of tendu leaves	206C(1)	5%
Sale of Timber obtained under a forest lease	206C(1)	2.50%
Sale of timber obtained by any other mode	206C(1)	2.50%
Sale of Any other forest produce not being timber/tendu leaves	206C(1)	2.50%
Sale of scrap	206C(1)	1%
Sale of Minerals, being coal or lignite or iron ore	206C(1)	1%
Grant of the license, lease, etc. of Parking lot	206C(1C)	2%
Grant of license, lease, etc. of Toll Plaza	206C(1C)	2%
Grant of license, lease, etc. of Mining and quarrying	206C(1C)	2%
Sale of motor vehicle above 10 lakhs	206C(1F)	1%
Sale of any other goods	206C(1H)	0.10%

Source: Income Tax Department