Relief on TDS/TCS rates is not applicable for the financial year 2021-22. New TDS rates are applicable for the financial year 2021-22, rather we can say that the old rates are now applicable for the financial year 2021-22 onwards.
Due to COVID-19, CBDT had earlier issued notification through which they have provided relief of reduction by 25% on the base rate of TDS as specified under the Income Tax Act.
How to calculate TDS on Flipkart Commission
As per the said notification, the reduced rates were applicable for the financial year 2020-21 i.e., till 31st March 2021, and thereafter the original rates will be restored with effect from 1st April 2021 onwards.
Therefore, every assessee who is covered under the provisions of TDS as per the Income Tax Act should deduct TDS at the rate(s) which were originally applicable before such relief notification and not deduct on the reduced rates from 1st April 2021 onwards.
Know the procedure to file a TDS claim on Flipkart – TDS Reimbursement
New TDS Rates applicable from 1st April 2021 – Flipkart, Amazon, etc. are as follows:
| Nature of Payment | Section | Reduced rates till 31st March 2021 | Reinstated/ original/ New TDS rate(s) i.e., 1st April 2021 |
| TDS from withdrawal from employee’s provident fund scheme | 192A | 10% | 10% |
| Interest on securities | 193 | 7.5% | 10% |
| Deduction of tax at source from dividends | 194 | 7.5% | 10% |
| Interest other than interest on securities | 194A | 7.5% | 10% |
| Winnings from lotteries or crossword puzzles | 194B | 30% | 30% |
| Winning from horse races | 194BB | 30% | 30% |
| Insurance commission | 194D | 3.75% | 5% |
| Payment of life insurance policy in excess of Rs.1Lakh other than exempted under section 10(10D) | 194DA | 3.75% | 5% |
| TDS on commission or brokerage in excess of Rs.15,000/- | 194H | 3.75% | 5% |
| Rent for plant and Machinery | 194-I(a) | 1.5% | 2% |
| Rent for immovable property | 194-I(b) | 7.5% | 10% |
| Payment on transfer of certain immovable properties (other than agricultural land) | 194IA | 0.75% | 1% |
| Payment of rent of property by certain individuals/HUFs | 194IB | 3.75% | 5% |
| In respect of payment made to professional or commission or brokerage of more than Rs.50,00,000/- and above | 194M | 3.75% | 5% |
| In case of cash withdrawal exceeding Rs. 20 Lakh or Rs.1 Crore as the case may be | 194N | 2% | 2% |
| Fees for professional fees etc | 194J | 1.5% in case of call centre 7.5% in other cases | 2% in case of call centre 10% in other cases |
| Payments in respect of deposits under National savings scheme | 194EE | 7.5% | 10% |
| Payment of income by the Business trust | 194LBA (1) | 7.5% | 10% |
| Payment of income by Investment fund | 194LBB(i) | `7.5% | 10% |
| Income by the securitization trust | 194LBC (1) | (a) 18.75% (Individual/HUF) (b) 22.5% (Others) | (a) 25% (Individual/HUF) (b) 30% (Others) |
| TDS on e-commerce participants | 194-O | 0.75% | 1% |
Related: For Flipkart Sellers “Deduct and Pay TDS on Flipkart LDC Rates – FY 2021-22“
