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.
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
| Section | Nature of payment | Threshold Limit | Applicable from 01/04/2020 to 13/05/2020 | Applicable from 14/05/2020 to 31/03/2021 | ||
| Resident | Non-resident * | Resident | Non-resident * | |||
| Rs. | TDS Rate (%) | TDS Rate (%) | TDS Rate (%) | TDS Rate (%) | ||
| 192 | Salaries | – | Normal slab rate | Normal slab rate | Normal slab rate | Normal slab rate |
| 192A | Premature withdrawal from EPF | 50000 | 10 | 10 | 10 | 10 |
| 193 | Interest on securities – 8% Savings (Taxable) Bonds, 2003 or 7.75% Savings (Taxable) Bonds, 2018 during the financial year | 10000 | 10 | – | 7.5 | – |
| 193 | Interest 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 securities | 5000 | 10 | – | 7.5 | – |
| 194 | Dividends | 5000 | 10 | – | 7.5 | – |
| 194A | Interest (Banking co., co-operative society engaged in banking, post office) | 40000 | 10 | – | 7.5 | – |
| 194A | Interest (Any other person) | 5000 | 10 | – | 7.5 | – |
| 194B | Winning from lotteries | 10000 | 30 | 30 | 30 | 30 |
| 194BB | Winning from Horse race | 10000 | 30 | 30 | 30 | 30 |
| 194C | Contractor-Single transaction -Individual/HUF -Others | 30000 | 1 2 | — | 0.75 1.5 | — |
| 194C | Contractor – Consolidated Payment During the F.Y. – Individual/HUF – Others | 100000 | 1 2 | — | 0.75 1.5 | — |
| 194D | Insurance commission – Other than Company – Company | 15000 | 5 10 | — | 3.75 10 | — |
| 194DA | Maturity of Life insurance policy | 100000 | 5 | – | 3.75 | – |
| 194E | Non-resident sportsmen or sports association | – | – | 20 | – | 20 |
| 194EE | NSS | 2500 | 10 | 10 | 7.5 | 10 |
| 194F | Repurchase units by MFs | – | 20 | 20 | 15 | 20 |
| 194G | Commission-Lottery | 15000 | 5 | 5 | 3.75 | 5 |
| 194H | Commission/Brokerage | 15000 | 5 | – | 3.75 | – |
| 194I | Rent of – Plant/Machinery /Equipment – Land and Building/Furniture & Fixture | 240000 | 2 10 | — | 1.5 7.5 | — |
| 194IA | Transfer of certain immovable property other than agriculture land | 50 lakh | 1 | – | 0.75 | – |
| 194IB | Rent by Individual/HUF | 50000 per month | 5 | – | 3.75 | – |
| 194IC | Payment under Joint Development Agreements to Individual/HUF | – | 10 | – | 7.5 | – |
| 194J | Professional Fees | 30000 | 10 | – | 7.5 | – |
| 194J | Technical Fees (w.e.f. 01.04.2020) | 30000 | 2 | – | 1.5 | – |
| 194J | Payment to call centre operator (w.e.f. 01.06.2017) | 30000 | 2 | – | 1.5 | – |
| 194J | Director’s fees | – | 10 | – | 7.5 | – |
| 194K | Payment 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) | 5000 | 10 | – | 7.5 | – |
| 194LA | Compensation on transfer of certain immovable property other than agriculture land(TDS exempted if covered under RFCTLARR Act w.e.f. 01.04.2017) | 250000 | 10 | – | 7.5 | – |
| 194LB | Income by way of interest from infrastructure debt fund | – | – | 5 | – | 5 |
| 194LBA | Income 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 |
| 194LBA | Distribution of rental income to unit holders – Other than Company – Company | – | 10 10 | 30 40 | 7.5 7.5 | 30 40 |
| 194LBB | Income in respect of units of investment fund – Other than Company – Company | – | 10 10 | 30 40 | 7.5 7.5 | 30 40 |
| 194LBC | Income 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 |
| 194LC | Income 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 India | – | – | 5 | – | 5 |
| 194LC | Income 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 Centre | – | – | 4 | – | 4 |
| 194LD | Interest on certain bonds from Govt. securities | – | – | 5 | – | 5 |
| 194M | Certain payments by Individual/HUF | 50 lakh | 5 | – | 3.75 | – |
| 194N | Payment of certain amount in cash | 1 Crore | 2 | 2 | 2 | 2 |
| 194N | Payment 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 | 2 5 | |
| 194-O | Applicable 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.A | – | 0.75 | – |
| 195 | Income of Investment made by an NRI | – | – | 20 | – | 20 |
| 195 | Long-term capital gain – Under Section 115E/112(1)(c)(iii)/112A – Any Other Gains | – | — | 10 20 | — | 10 20 |
| 195 | Short-term capital gain – 111A | – | – | 15 | – | 15 |
| 195 | Royalty | – | – | 10 | – | 10 |
| 195 | Fees for technical services | – | – | 10 | – | 10 |
| 195 | Interest income payable by Govt./Indian concern (other than section 194LB or 194LC) | – | – | 20 | – | 20 |
| 195 | Any Other Income – Other than Company – Company | – | – – | 30 40 | – – | 30 40 |
| 196A | Income 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 10 | – | – | 20 | – | 20 |
| 196B | Income from units to an offshore fund | – | – | 10 | – | 10 |
| 196C | Income from foreign currency bonds or GDR of an Indian company | – | – | 10 | – | 10 |
| 196D | Income of foreign Institutional Investors from securities (not being dividend or capital gain) | – | – | 20 | – | 20 |
* 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.
TDS Rate Chart for NRI: FAQs
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.
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
A- Deduct TDS as per the table below while buying property in India keeping in mind the associated conditions.
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.
Responses