TDS & TCS Slab Rate for AY 2020-21 PDF

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TDS & TCS Slab Rate for AY 2020-21

Tax Deducted at Source, also known as TDS, is a system of taxation where the person/entity responsible for making specific payments deducts the applicable tax before the payment is credited to the receiver. Some common payments which feature the TDS system of taxation include salary, bonus, commission, FD interest, rent, etc. TDS on different payments and their applicable rates are notified by the Income Tax Act, 1961.

TDS is basically a spot tax, deducted from the actual source of income. The same is described in the indirect tax section of the Income-tax Act 1961. It is implied on the income received from financial products like interest received on fixed deposits, incentives from the employer, commission’s payments, dividends on bonds, sale/purchase, or rent of any immovable property and money earned as lottery or awards. The TDS rate applicable under different sections & subsection is between 1%- 30%.

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