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Relief on TDS Rates not applicable for FY 2021-22, pay TDS on these rates

New TDS rates for the financial year 2021-22

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 PaymentSectionReduced rates till 31st March 2021Reinstated/ original/ New TDS rate(s) i.e., 1st April 2021
TDS from withdrawal from employee’s provident fund scheme192A10%10%
Interest on securities1937.5%10%
Deduction of tax at source from dividends1947.5%10%
Interest other than interest on securities194A7.5%10%
Winnings from lotteries or crossword puzzles194B30%30%
Winning from horse races194BB30%30%
Insurance commission194D3.75%5%
Payment of life insurance policy in excess of Rs.1Lakh other than exempted under section 10(10D)194DA3.75%5%
TDS on commission or brokerage in excess of Rs.15,000/-194H3.75%5%
Rent for plant and Machinery194-I(a)1.5%2%
Rent for immovable property194-I(b)7.5%10%
Payment on transfer of certain immovable properties (other than agricultural land)194IA0.75%1%
Payment of rent of property by certain individuals/HUFs194IB3.75%5%
In respect of payment made to professional or commission or brokerage of more than Rs.50,00,000/- and above194M3.75%5%
In case of cash withdrawal exceeding Rs. 20 Lakh or Rs.1 Crore as the case may be194N2%2%
Fees for professional fees etc194J1.5% in case of call centre 7.5% in other cases2% in case of call centre 10% in other cases
Payments in respect of deposits under National savings scheme194EE7.5%10%
Payment of income by the Business trust194LBA (1)7.5%10%
Payment of income by Investment fund194LBB(i)`7.5%10%
Income by the securitization trust194LBC (1)(a) 18.75% (Individual/HUF)
(b) 22.5% (Others)
(a) 25% (Individual/HUF)
(b) 30% (Others)
TDS on e-commerce participants194-O0.75%1%

Related: For Flipkart Sellers “Deduct and Pay TDS on Flipkart LDC Rates – FY 2021-22

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