TDS Rate Chart for FY 2020-21: NRI TDS Rates

TDS stands for Tax Deducted at Source. Find the table of revised TDS Rates for Residents as well as Non-Resident Indians (NRIs) in India post the Union Budget of 2020 in this article. 

TDS is either deducted at source by the companies through which you invest your money in India, while the returns are received calculated on stipulated TDS Rates, or by institutions providing salaries to you or directly by people paying the income to you and it needs to be deposited within a stipulated time to the government.

TDS Rate Chart for FY 2020-21: NRI TDS Rates
TDS Rate Chart for FY 2020-21: NRI TDS Rates

COVID-19 and TDS Rates

After the government of India provided relief to the Resident Indians concerning the TDS Rates for the period 14.05.2020 to 31.03.2021 as a result of the pandemic and the associated lockdowns affecting all the sectors of the country’s economy. The relief however, is limited to the TDS Rates only. 

Note: The benefits have been provided only to the Resident Indians, NRIs can’t claim the benefits under this TDS Rates relief package of the government.

TDS Rates applicable for Resident Indians and NRIs

SectionNature of paymentThreshold LimitApplicable from 01/04/2020 to 13/05/2020Applicable from 14/05/2020 to 31/03/2021
   ResidentNon-resident *ResidentNon-resident *
  Rs. TDS Rate (%)TDS Rate (%)TDS Rate (%)TDS Rate (%)
192SalariesNormal slab rateNormal slab rateNormal slab rateNormal slab rate
192APremature withdrawal from EPF5000010101010
193Interest on securities – 8% Savings (Taxable) Bonds, 2003 or 7.75% Savings (Taxable) Bonds, 2018 during the financial year10000107.5
193Interest on securities – Interest on securities for money issued by or on behalf of any local authority/statutory corporation, listed debentures of a company(other than demat form), any other interest on securities5000107.5
194Dividends5000107.5
194AInterest (Banking co., co-operative society engaged in banking, post office)40000107.5
194AInterest (Any other person)5000107.5
194BWinning from lotteries1000030303030
194BBWinning from Horse race1000030303030
194CContractor-Single
transaction
-Individual/HUF           
-Others
30000 

1
2
 —

0.75
1.5
 —
194CContractor – Consolidated Payment During the F.Y.
– Individual/HUF
– Others
100000  


1
2
  —  


0.75
1.5
  —
194DInsurance commission
– Other than Company
– Company
15000
5
10
 —
3.75
10
 —
194DAMaturity of Life insurance policy10000053.75
194ENon-resident sportsmen or sports association2020
194EENSS250010107.510
194FRepurchase units by MFs20201520
194GCommission-Lottery15000553.755
194HCommission/Brokerage1500053.75
194IRent of
– Plant/Machinery /Equipment
– Land and Building/Furniture & Fixture
2400002
10
1.5
7.5
194IATransfer of certain immovable property other than agriculture land50 lakh10.75
194IBRent by Individual/HUF50000 per month53.75
194ICPayment under Joint Development Agreements to Individual/HUF107.5
194JProfessional Fees30000107.5
194JTechnical Fees (w.e.f. 01.04.2020)3000021.5
194JPayment to call centre operator (w.e.f. 01.06.2017)3000021.5
194JDirector’s fees107.5
194KPayment of any income in respect of(a) units of a mutual fund as per section 10(23D); or(b) the units from the administrator; or(c) units from specified company(w.e.f. 01.04.2020)5000107.5
194LACompensation on transfer of certain immovable property other than agriculture land(TDS exempted if covered under RFCTLARR Act w.e.f. 01.04.2017)250000107.5
194LBIncome by way of interest from infrastructure debt fund55
194LBAIncome from units of business trust
– interest received or receivable from a special purpose vehicle; or
– dividend referred to in sub-section (7) of section 115-O
 10



10
 5



10
 7.5



7.5
 5



10
194LBADistribution of rental income to unit holders
– Other than Company
– Company
 

10
10
  

30
40
  

7.5
7.5
  

30
40
194LBBIncome in respect of units of investment fund
– Other than Company
– Company
  


10
10
  


30
40
  


7.5
7.5
  


30
40
194LBCIncome in respect of investment in securitization fund
– Individual/HUF
– Company
– Other Person
 


25
30
30
  


30
40
30



18.75
22.5
22.5
  


30
40
30
194LCIncome by way of interest by an Indian specified company to a non-resident/foreign company on foreign currency approved loan / long-term infrastructure bonds from outside India55
194LCIncome by way of interest by an Indian specified company on rupee denominated bond / any long-term bonds from outside India, which is listed only on a recognized stock exchange located in any International Financial Services Centre44
194LDInterest on certain bonds from Govt. securities55
194MCertain payments by Individual/HUF50 lakh53.75
194NPayment of certain amount in cash1 Crore2222
194NPayment of certain amount in cash (first proviso of section 194N)if-
–  Amount is more than Rs.20 lakh but up to Rs. 1 crore
–  Amount exceeds Rs. 1 crore (Applicable from 01.07.2020)
 


N.A. 


N.A.
  


N.A.


N.A.
 


2


5
 





5
194-OApplicable for e-commerce operator for the sale of goods or provision of services facilitated by it through its digital or electronic facility or platform (Applicable from 01.10.2020)N.A0.75
195Income of Investment made by an NRI2020
195Long-term capital gain
– Under Section 115E/112(1)(c)(iii)/112A
– Any Other Gains
  —

10
20
  —

10
20
195Short-term capital gain – 111A1515
195Royalty1010
195Fees for technical services1010
195Interest income payable by Govt./Indian concern (other than section 194LB or 194LC)2020
195Any Other Income
– Other than Company 
– Company
– –
30
40
– –
30
40
196AIncome in respect –- of units of a Mutual Fund specified under clause (23D) of section 10; or- from the specified company referred to in the Explanation to clause (35) of section 102020
196BIncome from units to an offshore fund1010
196CIncome from foreign currency bonds or GDR of an Indian company1010
196DIncome of foreign Institutional Investors from securities (not being dividend or capital gain)2020

* TDS rate shall be increased by applicable surcharge and Health & Education Cess.

Note: In case of non-furnishing of PAN/Aadhaar by deductee, TDS will be charged at normal rate or 20% (5% in case of section 194-O), whichever is higher.

Also Watch: TCS on Outward Remittances for NRI (2020 Budget)

TDS Rates and NRI: The Inevitable Bond

NRIs and TDS Rates in India have a very unique bond. From income to investments, everything invites a certain percentage of tax and you can always find a tds chart assigned to NRIs almost everywhere. Tax for NRI on Indian Income and Investments is a very complex topic and to get to the crux of it, you need to dig deep. We, at SBNRI understand your struggle and provide simple solutions to these complex problems.

Taxation on NRI Bank Accounts

Ask SBNRI Tax Expert Now

TDS Rate Chart for NRI: FAQs

1. Is TDS applicable for NRI?

A- Yes. TDS is applicable for NRIs. The TDS Rates for NRI is different for different types of income and asset classes for investments in India. 

2. What is the TDS rate under section 195?

A-  The TDS rate under Section 195 ( Income in respect of investment made by a NRI) is 20%. However, there are other particulars under this section with different rates of TDS. You can browse through all the TDS Rates on our blog

3. How can NRI deduct TDS on sale of property?

A- Deduct TDS as per the table below while buying property in India keeping in mind the associated conditions.tds rates while buying property

4. Can NRI claim TDS refund?

A- Yes. As an NRI, if your tax liability is less than the TDS deducted from your income, you can file an income tax return to claim a refund. Here’s a list of NRI Income tax slabs for your reference.
Income Tax Slab for NRI

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