S No.Section Of IT actNature of PaymentExisting Rate of TDSReduced rate from 14/05/20 to 31/03/211193Interest on Securities10%7.50%2194Dividend10%7.50%3194 AInterest other than interest on securities10%7.50%4194 CPayment of Contract or and sub contractors1% (individual / HUF) 2%   (others)0.75% (individual/HUF) 1.5% (others)5194 DInsurance Commission5% 3.75%6194 DAPayment in respect of life insurance policy5% 3.75%7194 EEPayments in respect of deposits under National Savings Scheme10%7.50%8194 FPayments on account of re-purchase of Units by Mutual Funds or UTI20%15%9194 GCommission , prize etc., on sale of lottery tickets5% 3.75%10194 HCommission or brokerage5% 3.75%11194 I(a)Rent for plant and machinery2%1.5%12194 I(b)Rent for immovable property10%7.5%13194 IAPayment for acquisition of immovable property1%0.75%14194 IBPayment of rent by individual or HUF5%3.75%15194 ICPayment for Joint Development Agreements10%7.5%16194 JFee for Professional or Technical Services (FTS), Royalty, etc.2% (FTS, certain royalties, call centre) 10% (others)1.5% (FTS, certain royalties, call centre) 7.5% (others)17194 KPayment of dividend by Mutual Funds10%7.5%18194 LAPayment of Compensation on acquisition of immovable property10%7.5%19194 LBA(1)Payment of income by Business trust10%7.5%20194 LBB(i)Payment of income by Investment fund10%7.5%21194 LBC(1)Income by securitisation trust25% (Individual / HUF) 30% (Others)18.75% (Individual/HUF) 22.5% (Others)22194 MPayment to commission , brokerage etc. by Individual and HUF05%3.75%23194 OTDS on e-commerce participants1% (w.e.f. 1.10.2020 )0.75%


2.Therefore, Tax Deduction at Source (TDS) on the amount paid or credited during the period from14th May,2020 to 31st March,2021 shall be deducted at the reduced rates specified in the table.

3.It is further stated that there shall be no reduction in rates of Tax Deduction at Source (TDS) or  Tax Collection at Source (TCS), where the tax is required to be deducted or collected at higher rate due to non furnishing of PAN / Aadhaar.  Eample, if the tax is required to be deducted at 20% under section 206AA of the Income-tax Act due to non-furnishing of PAN / Aadhaar, it shall be deducted at the rate of 20% and not at the rate of 15%.

4.Legislative amendments in this regard shall be proposed in due course.