ITR Filing Mandatory in some cases- New Amendment in Income Tax Rules

Now, vide Notification No. 37/2022, Dated 21-April-2022, CBDT has notified a new Rule 12AB which prescribes additional conditions which mandate the filing of Income-tax returns despite the fact that income is below the basic exemption limit.

In the Income-tax Rules, 1962, after rule 12AA, the following rule shall be inserted, namely:-

12AB. Conditions for furnishing return of income by persons referred to in clause (b) of sub-section (1) of section 139.– 

The conditions for furnishing return of income in respect of persons referred to in clause (b) of sub-section (1) of section 139 in terms of clause (iv) of the seventh proviso to sub-section (1) of section 139 shall be the following, namely: -

(i) if his total sales, turnover or gross receipts, as the case may be, in the business exceeds sixty lakh 

rupees during the previous year; or

(ii) if his total gross receipts in profession exceeds ten lakh rupees during the previous year; or

(iii) if the aggregate of tax deducted at source and tax collected at source during the previous year, in the case of the person, is twenty-five thousand rupees or more*; or

(iv) the deposit in one or more savings bank account of the person, in aggregate, is rupees fifty lakh or more during the previous year:

(*For Point No-(iii) = However, the limit of TDS + TCS has been kept at Rs 50,000 for taxpayers who are 60 years or more.)

Download : Notification No. 37/2022

GST ITC from Jan-2022 Onwards

From January 2022 input tax credit ITC available only upto what is reflected in GSTR-2B

Here is the flowchart what to add + and what to less - from GSTR-2B to arrive at "ITC to be claimed" in GSTR-3B

It is recommended that reconciliation of ITC as per books and GSTR-2B should be done monthly basis,  to keep track of ITC mismatch

+ Download GSTR-2B form
(Generally it is available in the afternoon of 14th of every month)

- Remove ineligible ITC from GSTR-2B form
(Such a motor car, food, health insurance, gift, capital expense relating to immovable property etc)

- Remove ITC claimed in earlier period from GSTR-2B
(Example invoice dated 10-12-2021  ITC taken in GSTR-3B of Dec-21, however supplier disclosed same ITC  recently  and appearing in GSTR-2B of Jan-22)

- Remove goods received in next month from GSTR-2B form
(Example invoice date 30-01-2022 and also appearing in GSTR-2B of Jan-22 , however goods are received from company 5th Feb 2022 , this ITC is to be claimed in GSTR-3B of Feb 2022)

- Remove ITC not relating to your business from GSTR-2B form
(Example A solds goods to B, but in GSTR-1 shown GSTIN of D , Here D needs to be remove ITC from is GSTR-2B)

+ Add import ITC to be Taken based on bill of entries from GSTR-2B form
(Example in Jan 2022, 3 bill of entries are filled by company, However in GSTR-2B of Jan only 1 bill of entries is reflecting, company can claim ITC of remaining 2 bill of entries too in Jan 2022, even though it is not reflecting in GSTR-2B)

+ Add pending ITC from GSTR-2B form
(Example invoice date 10-11-20 21 supplier filled his GST-R1 & GSTR-3B within due date, However buyer has not taken ITC in Nov / Dec yet, same can be now taken in Jan 2022)

Happy reconciling.

Important Changes in GST w.e.f. 01st January 2022

It is to inform you that from 1st January 2022, there is no scope for any errors while filing GST Returns.

1. Notification of provisions on recovery of "Self-Assessed Tax".

-The GSTR-1 cannot be filed, if the previous period GSTR-3B is not filed.

-The Tax Liability declared in GSTR-1 should be paid in GSTR-3B.

-The difference between the tax liability of GSTR-1 and GSTR-3B is considered as self assessed tax.

-The GST officer need not issue show cause notice for recovery of the taxes.

-Such amount can be collected directly by attaching the bank account if required.

-If you do not file GSTR-3B of the previous period the GSTR-1 also can't be filed.

-By mistake if you have declared more tax liability in your GSTR-1 , you have no choice but to pay this extra liability, (See last para below for some relief). 

2. GST ITC Credit available when reflected in GSTR-2B

-The ITC (which is the option to reduce your tax payment by cash) is as per GSTR-2B.

-If your supplier does not furnish GSTR-1 on time you cannot avail the credit of ITC in GSTR - 3B.

-If you do not file the GSTR-1 on time your supplier cannot get the ITC.

-By mistake, your supplier has mentioned the wrong date, GSTIN or wrongly mentioned as B2C instead B2B, you lose the ITC and you have to pay cash while filing GSTR-3B.

3.Suggestions to Accounts Department.

-The only option is to streamline the system of maintaining of Accounts and filing of GST returns perfectly and in time.

-Proper care should be taken to ensure correct Accounting Entries are done in the accounting system.

-There should be a proper review mechanism for cross checking the information.

-The GST return should flow ideally from the accounting system (after proper review).

-Sufficient funds should be available to make timely payment of GST.

-There is no escape from the system.

-Not only you should ensure such compliance, but your supplier should also ensure such compliance.

-Hence pass on this message to your supplier as well,



Note - However, if there is incorrect data entry in GSTR-1, I think then you need to write a letter to the Department informing the same to them to ensure that no action is taken. The same should be amended in the next GSTR-1.

Know all about RCM applicability under GST on Directors Services

Introduction

Generally under GST provisions, the liability of pay tax rests on supplier. However, in certain cases the liability to pay GST to the government falls on the recipient. This is known as reverse charge mechanism which is covered under Notification No. 13/2017- Central Tax (Rate).

According to the said notification, services supplied by a director of a company or a body corporate to the said company or the body corporate are covered under RCM provisions (liability to pay tax falls on the company or body corporate).

For instance Mr. Shivprasad Subudhi is an Independent Director who provides services to Jyoti Pvt Ltd. Consideration received by Mr. Shivprasad Subudhi from Jyoti Pvt Ltd is covered under the RCM provisions. Liability to pay tax to the government falls on Jyoti Pvt Ltd.

Do all services provided by director’s fall under the RCM provisions?

Schedule III to CGST Act 2017 covers activities or transactions which shall be treated neither as a Supply of Goods nor a Supply of Services. Services by an employee to the employer in the course of or in relation to his employment are covered under Schedule III (not taxable under GST).

Circular No: 140/10/2020 – GST was introduced to provide Clarification in respect of levy of GST on Director’s remuneration in order to avoid contradictory scenarios like above rulings.  The provisions covered in this circular are as below:-

Directors	Is it covered under Schedule III	Taxability
Directors who are not the employees of the company [Independent directors]	No	Taxable on RCM basis in the hands of the company
Directors who are employees, but are not functioning according to the contract of employment Where TDS under Income Tax law is deducted u/s 194J (payment of professional fees)	No	Taxable on RCM basis in the hands of the company
Directors who are employees functioning according to the contract of employment Where TDS under Income Tax law is deducted u/s 192 (salary payment)	Yes	Not Taxable

                   

Points to be noted:-

1.      A Whole Time Director may or may not be the employee – As per section 2(94) of the Companies Act, 2013 a whole time-director is an inclusive definition, and thus he may be a person who is not an employee of the company

2.     Section 149(6) of the Companies Act, 2013, read with Rule 12 of Companies (Share Capital and Debentures) Rules, 2014 makes it clear that an independent director should not have been an employee or proprietor or a partner of the said company, in any of the 3 financial years immediately preceding the financial year in which he is proposed to be appointed in the said company.

3.     Directors function in dual capacity – capacity of director and in capacity of employee. Test would be whether it is a “contract for service” (i.e., professional service) or “contract of service” (i.e., employment contract).

What is an important test to determine whether GST is leviable on services provided by directors?

The following criteria needs to be fulfilled in order to not constitute as a supply under GST:-

1.      There should be an Employer-employee relationship (master servant relationship).

2.     TDS is deducted u/s 192 and not u/s 194J of the Income Tax Act.

3.     It should be a contract of service and not a contract for service.

For Example where RCM is applicable on services provided by directors:-

Question - Mr Biswajit Mishra is a director of Samal Pvt Ltd. On payment of consideration to Mr Biswajit Mishra, Samal Pvt Ltd deducts TDS u/s 194J of Income Tax Act (TDS on professional fees). IS GST chargeable on this amount?

Answer - Services provided by Mr Biswajit Mishra constitute as a supply under GST as there is not employer-employee relationship, which is proved by the fact that TDS is deducted u/s 194J. Consideration received by the director is taxable on RCM basis in the hands of the company.

What is the time of supply for supply of director’s services when they are covered under RCM?

The Time of supply is the point when the supply is liable to GST. In reverse charge, recipient is liable to pay GST. Therefore, time of supply for supplies under reverse charge is different from the supplies which are under forward charge.

Time of Supply shall be earliest of:-

1.      The date of payment as entered in the books of account of the recipient or the date on which the payment is debited in his bank account, whichever is earlier

2.     61st date from the date of issue of invoice

If it is not possible to compute time of supply using above method, the time of supply shall be the date of entry in the books of account of the recipient of supply.

For Example:-

-       Date of payment – 15th July 2019

-       Date immediately after 60 days from the date of issue of invoice (Suppose the date of invoice is 15th May 2019, then 60 days from this date will be 14th July 2019)

-       Date of entry in books of receiver 20th July 2019

-       Time of supply of service, in this case, will be 14th July 2019

Can a supplier avail Input Tax Credit (ITC) on GST paid under RCM?

A supplier (director) cannot take ITC of GST paid on goods or services used to make supplies on which recipient is liable to pay tax.

Who can avail the benefit of ITC on services provided by a director to a company or body corporate?

1.      The question of availing ITC does not arise on cases which do not constitute as a supply under GST (employer-employee relationships).

2.     The recipient (company or body corporate in this case) can avail ITC of GST amount that is paid under reverse charge on receipt of services (cases where employer-employee relationship does not exist)

What is the GST payable on services provided by directors when they constitute as a supply under GST?

GST Rate payable by receiver (company or body corporate) is 18%.

What compliances are required to be followed in respect of supplies under RCM?

1.      As per section 31 of the CGST Act, 2017 read with Rule 46 of the CGST Rules, 2017, every tax invoice has to mention whether the tax in respect of supply in the invoice is payable on reverse charge.

2.     This also needs to be mentioned in receipt voucher as well as refund voucher. (if tax is payable under RCM)

3.     Every registered person is required to keep and maintain records of all supplies attracting payment of tax on reverse charge

4.     Any amount payable under RCM shall be paid by debiting the electronic cash ledger.

5.     Reverse charge liability cannot be discharged by using input tax credit. However, after discharging reverse charge liability, credit of the same can be taken by the recipient, if he is otherwise eligible.

6.     Invoice level information in respect of all supplies attracting reverse charge, rate wise, are to be furnished separately in the table 4B of GSTR-1.

7.     Advance paid for reverse charge supplies is also leviable under GST. The person making advance payment has to pay tax on reverse charge basis.

Thus, it can be concluded that :-

1.      Remuneration paid to whole time/executive/managing director in the capacity of employee is not taxable under GST.

2.     Sitting fees/ Commission paid in the capacity of director (independent directors, whole time director, executive director, managing director) is be liable to GST under RCM.

Latest FAQ on GST liability on Director of Company

Introduction

 Generally under GST provisions, the liability to pay tax rests on supplier. However, in certain cases the liability to pay GST to the government falls on the recipient. This is known as reverse charge mechanism which is covered under Notification No. 13/2017- Central Tax (Rate).

 According to the said notification, services supplied by a director of a company or a body corporate to the said company or the body corporate are covered under RCM provisions (liability to pay tax falls on the company or body corporate)

 Schedule III to CGST Act 2017 covers activities or transactions which shall be treated neither as a Supply of Goods nor a Supply of Services. Services by an employee to the employer in the course of or in relation to his employment are covered under Schedule III (not taxable under GST).

 Circular No: 140/10/2020 – GST was introduced to provide Clarification in respect of levy of GST on Director’s remuneration in order to avoid contradictory scenarios like above rulings.  The provisions covered in this circular are as below:-

 

Directors	Is it covered under Schedule III	Taxability
Directors who are not the employees of the company [Independent directors]	No	Taxable on RCM basis in the hands of the company
Directors who are employees, but are not functioning according to the contract of employment Where TDS under Income Tax law is deducted u/s 194J (payment of professional fees)	No	Taxable on RCM basis in the hands of the company
Directors who are employees functioning according to the contract of employment Where TDS under Income Tax law is deducted u/s 192 (salary payment)	Yes	Not Taxable

   Points to be noted:-

 1.      A Whole Time Director may or may not be the employee – As per section 2(94) of the Companies Act, 2013 a whole time-director is an inclusive definition, and thus he may be a person who is not an employee of the company

2.     Section 149(6) of the Companies Act, 2013, read with Rule 12 of Companies (Share Capital and Debentures) Rules, 2014 makes it clear that an independent director should not have been an employee or proprietor or a partner of the said company, in any of the 3 financial years immediately preceding the financial year in which he is proposed to be appointed in the said company.

3.     Directors function in dual capacity – capacity of director and in capacity of employee. Test would be whether it is a “contract for service” (i.e., professional service) or “contract of service” (i.e., employment contract).

 FAQ’s on GST liability on Director of Company

 1. Who are Directors of a company?

 The directors are the persons elected by the shareholders to direct, conduct, manage or supervise the affairs of the company.

According to Sec. 2 (13) of the Companies Act, “Director includes any person occupying the position of director by whatever name called.”

  

2. What do you mean by an independent director?

 Section 2(47) of the Companies Act states that an ‘independent director’ means an independent director referred to in Section 149(6). Section 149(6) provides with a descriptive list of qualifications of an independent director.

  

3. Can an employee be appointed as an independent director of the company?

 Independent director cannot be an employee, proprietor or a partner of the said company, in any of the 3 financial years immediately preceding the financial year in which he is proposed to be appointed in the said company.

 

 

4. What do you mean by a whole time director?

 “Whole-time Director” includes a director in the whole-time employment of the company. The definition of ‘whole-time director’ is an inclusive definition, so he may not be an employee of the company too.

  

5. What do you mean by a managing director?

 The Board of Di­rectors generally appoints one of its members to manage the affairs of the company as a whole time officer and calls him the Managing Director. The Managing Director occupies a position of dual authority and responsibility. As a director, he attends the Board meetings and, as a manager, he performs the managerial functions.

  

6. What is an important test to determine whether GST is leviable on services provided by directors?

 The following criteria needs to be fulfilled in order to not constitute as a supply under GST:-‘

i. Employer-employee relationship (master servant relationship)

ii. TDS is deducted u/s 192

iii. It should be a contract of service and not a contract for service

 

7. How are services provided by a whole time director to a body corporate covered under GST?

 Here, it is essential to note whether the services provided by the whole time director are in accordance of a contract of employment or not.

i. If the whole time director is working according to a contract of employment, services provided do not constitute as a supply under GST. Hence, not taxable.

ii. If the whole time director is not working according to a contract of employment, services provided constitute as a supply under GST. Consideration received by the director is taxable on RCM basis in the hands of the company

 

8. How are services provided by an independent director to a body corporate covered under GST?

 Services provided by an independent director constitute as a supply under GST as there is no employer-employee relationship. Consideration received by the director is taxable on RCM basis in the hands of the company.

 

9. Mr. A is a director employed by XYZ Pvt Ltd under the terms of an employment contract. Mr. A received salary of Rs 10 lakhs during the year. Is this consideration taxable under GST?

 Services provided by Mr. A are in terms of the employment contract. There is employer-employee relationship in this case. These services will not be considered as supply under GST. Hence, not taxable.

 

10. How are services provided by a managing director to a body corporate covered under GST?

 It is essential to find out whether the services provided by the managing director are in accordance of a contract of employment or not.

i. If the managing director is working according to a contract of employment, services provided do not constitute as a supply under GST. Hence, not taxable.

ii. If the managing director is not working according to a contract of employment, services provided constitute as a supply under GST. Consideration received by the director is taxable on RCM basis in the hands of the company.

 

11. What is the GST payable on services provided by directors when they constitute as a supply under GST?

 GST Rate payable by receiver (company or body corporate) is 18%.

 

12. Who can avail the benefit of Input Tax Credit (ITC) on services provided by a director to a company or body corporate?

 i. The question of availing ITC does not arise on cases which do not constitute as a supply under GST (employer-employee relationships).

ii. The recipient (company or body corporate in this case) can avail ITC of GST amount that is paid under reverse charge on receipt of services (cases where employer-employee relationship does not exist)

 

13. What is the time of supply for supply of director’s services when they are covered under RCM?

 Time of Supply shall be earliest of:-

i. the date of payment as entered in the books of account of the recipient or the date on which the payment is debited in his bank account, whichever is earlier

ii. 61st date from the date of issue of invoice

If it is not possible to compute time of supply using above method, the time of supply shall be the date of entry in the books of account of the recipient of supply.

 

14. Mr. P is a director of ABC Pvt Ltd. On payment of consideration to Mr. P, ABC Pvt Ltd deducts TDS u/s 192 of Income Tax Act (TDS on salary). IS GST chargeable on this amount?

 Services provided by Mr. P are in terms of the employment contract. There is employer-employee relationship, which is proved by the fact that TDS is deducted u/s 192. These services will not be considered as supply under GST. Hence, not taxable.

 

15. Mr. Q is a director of ABC Pvt Ltd. On payment of consideration to Mr. Q, ABC Pvt Ltd deducts TDS u/s 194J of Income Tax Act (TDS on professional fees). Is GST chargeable on this amount?

 Services provided by Mr. Q constitute as a supply under GST as there is not employer-employee relationship, which is proved by the fact that TDS is deducted u/s 194J. Consideration received by the director is taxable on RCM basis in the hands of the company.

 

Mediclaim or Health Insurance - Deduction on Section 80D in Income Tax Act 1961

Mediclaim or Health Insurance deduction you can claim for yourself and parents for FY-2020-2021

Deductions are the eligible expenses notified by the Income tax act which the assessee can claim against the income in order to reduce his total income and ultimately save his taxes. 

Investing in various schemes of notified by government will help you ultimately reduce the tax. 

There are various deduction from Section 80C to 80U available to Individuals and HUF.

Section 80D is applicable to individuals and HUF for all the medical expenses he does.

An assessee can get deduction under section 80D as follows:

a. In case of individual a deduction of Rs. 25,000 will be applicable if medical insurance is taken for self, spouse and dependent children. The assessee will get an additional deduction of Rs. 25,000 for the mediclaim of parents if they are less than 60 years and if they are more than 60 years of age then assessee is eligible for maximum of Rs. 50,000 deduction on parents mediclaim premium.

b. In case both the  assessee and the parents are more than 60 years then both will get a deduction of Rs. 50,000 each i.e. the assessee will get a total deduction of Rs. 1,00,000 under section 80D.

c. In case of HUF the assessee will get a maximum deduction of Rs. 25,000.

d. In case of Non resident individual the assessee will get a maximum deduction of Rs. 25,000.

The above provision can be summarised as below:

Covered Individuals	Maxiumum deduction for self, family and children	Maxiumum deduction for parents	Total Maximum deduction under 80D for Individual
	(Amt in Rs)	(Amt in Rs)	(Amt in Rs)
Self, family and parents below 60 years	25,000	25,000	50,000
Self and family but parents above the age of 60	25,000	50,000	75,000
Both the individual and parents are above 60 years of age	50,000	50,000	1,00,000
Members of HUF	25,000	25,000	25,000
Non resident	25,000	25,000	25,000

Important Points to be Remember while claiming deduction in Section 80D of Income Tax

1. The maximum deduction under 80D shall include expense paid on preventive health check up for a maximum of Rs. 5,000.

2. Senior citizen” means an individual resident in India who is of the age of sixty years or more at any time during the relevant previous year.

3. Family  means the spouse and dependant children of the assessee.

4. Non resident will get maximum deduction of Rs. 25,000 even if he or his parents are of more than 60 years of age.

5. Payment should be made in any mode other than cash.

6. Contribution towards health insurance plan has to made to a scheme as specified by the Central Govt./ approved by IRDA.

7. Medical premium paid towards brother, sister or any other relative cannot be considered as deduction under 80D.

8. Premium paid on medical insurance of independent children is not eligible for deduction.

9. For FY 2019-20 you can pay the medical premium till 30 June 2020 and still claim deduction for FY 2019-20 Income Tax Returns, Individuals have option to select which Financial Year they want to claim if the premium is paid in between 1 April 2020 to 30 June 2020, FY 2019-20 or FY 2020-21.

TDS Rate Chart - FY-2020-2021 (AY-2021-2022)

TDS Rate Chart

For Financial Year 2020-21 and Assessment Year 2021-22 (Note : TDS/TCS Rates were reduced by 25% w.e.f. 14-May-2020)

Section	Particulars	TDS Rate Individual/ HUF (Indian Resident) (in %)	TDS Rate for  (NRI) in India (in %)	Domestic Company (in %)	Other than domestic Company (in %)
192	Payment of salary	Normal Slab Rate	Normal Slab Rate	–	–
192A	Payment of accumulated balance of Provident fund which is taxable in the hands of an employee. Monetary Limit – Rs. 50,000	10	10.4	–	–
193	Interest on Securities
a.	any debentures or securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act;	10	–	10	–
b.	debentures issued by a company where such debentures are listed on a recognised stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder;	10	–	10	–
c.	any security of the Central or State Government; (Monetary Limit – Rs 10,000)	10	–	10	–
d.	interest on any other security	10	–	10	–
194	Dividend (monetary limit- Rs 5000)	–	–	10	–
194A	An Income by way of interest other than “Interest on securities” (Monetary Limit – Rs 40,000)	10	–	10	–
194B	Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort (Monetary Limit – Rs 10,000)	30	31.2	30	31.2
194BB	Income by way of winnings from horse races (Monetary Limit – Rs 10,000)	30	31.2	30	31.2
194C	A Payment to contractor/sub-contractor  (Monetary Limit – Rs 30,000 per contract or Rs 1,00,000 for aggregate amount during the year)
a.	HUF/Individuals	1	–	1	–
b.	Others	2	–	2	–
194D	Insurance commission (Monetary Limit – Rs 15,000)	5	–	10	–
194DA	A Payment in respect of life insurance policy w.e.f. 1/9/2019, the tax shall be deducted on the amount of income comprised in insurance pay-out. (Monetary Limit – Rs 1,00,000)	5	–	5	–
194E	Payment to non-resident sportsmen/sports association	–	20.8	–	20.8
194EE	A Payment in respect of deposit under National Savings scheme (Monetary Limit – Rs 2,500)	10	10.4	10	–
194F	Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India	20	20.8	20	–
194G	Commission, etc., on sale of lottery tickets (Monetary Limit – Rs 15,000)	5	5.2	5	5.2
194H	Commission or brokerage (Monetary Limit – Rs 15,000)	5	–	5	–
194-I	Rent (Monetary Limit – Rs 2,40,000)
a.	Plant & Machinery	2	–	2	–
b.	Land or building or furniture or fitting	10	–	10	–
194-IA	Payment on transfer of certain immovable property other than agricultural land. (Monetary Limit – Consideration exceeding Rs 50,00,000)	1	–	1	–
194-IB	A Payment of rent by individual or HUF not liable to tax audit. (Monetary Limit – Rent for the month or part of the month exceeds Rs 50,000)	5	–	–	–
194-IC	Payment of monetary consideration under Joint Development Agreements	10	–	10	–
194J	A Payment for fees for Technical services, Professional services or royalty etc. (Monetary Limit –Rs 30,000 p.a)
a.	Fee for technical services	2	–	2	–
b.	Fee in other all cases as per Section 194J	10	–	10	–
194K	Payment of any income in respect of:	10	–	10	–
a)	Units of a Mutual Fund as per Section 10(23D)
b)	The Units from the administrator
c)	Units from specified company
194LA	A Payment of compensation on acquisition of certain immovable property (Monetary Limit –Rs 2,50,000 p.a.)	10	–	10	–
194LB	Payment of interest on infrastructure debt fund	–	5.2		5.2
194LBA(1)	Business trust shall deduct tax while distributing, any interest received or receivable by it from a SPV or any income received from renting or leasing or letting out any real estate asset owned directly by it, to its unit holders.	10	–	10	–
194LBA(2)	A Business trust shall deduct tax while distributing any interest income received or receivable by it from a SPV to its unit holders.	–	5.2	–	5.2
194LBA(3)	Business trust shall deduct tax while distributing any income received from renting or leasing or letting out any real estate asset owned directly by it to its unit holders.	–	31.2	–	41.6
194LBB	Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)]	10	31.2	10	41.6
194LBC	Income in respect of investment made in a securitisation trust (specified in Explanation of section 115 TCA)	25% in case of Individual or HUF. 30% in case of other resident person	31.2	10	41.6
194LC	Payment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds (including long-term infrastructure bond). Note: Now TDS at concessional rate of 5% will be applicable for borrowings made after April 1, 2020 but before July 1, 2023.	–	5.2	–	5.2
194LD	A Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor. Note: Now TDS at concessional rate of 5% will be applicable for borrowings made after April 1, 2020 but before July 1, 2023.	–	5.2	–	5.2
194M	Payment of commission (not being insurance commission), brokerage, contractual fee, professional fee to a resident person by an Individual or a HUF who are not liable to deduct TDS under section 194C, 194H, or 194J.	5	–	5	–
194N	Cash withdrawal inexcess of Rs. 1 crore during the previous year from one or more account maintained by a person with a banking company, co-operative society engaged in business of banking or a post office	2	–	2	–
194-O	Applicable for E-Commerce operator for sale of goods or provision of service facilitated by it through its digital or electronic facility or platform.	1	–	1	–
195	Payment of any other sum to a Non-resident
a.	An Income in respect of investment made by a Non-resident Indian Citizen	–	20.8	–	–
b.	Income by way of long-term capital gains referred to in Section 115E in case of a Non-resident Indian Citizen	–	10.4	–
c.	An Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-Section (1) of Section 112	–	10.4	–	10.4
d.	Income by way of long-term capital gains as referred to in Section 112A	–	10.4	–	10.4
e.	An Income by way of short-term capital gains referred to in Section 111A	–	15.6	–	15.6
f.	Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses 10(33), 10(36) and 112A	–	20.8	–	20.8
g.	Income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC)	–	20.8		20.8
h.	The Income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of Section 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of Section 115A of the Income-tax Act, to a person resident in India	–	10.4	–	10.4
i.	Income by way of royalty [not being royalty of the nature referred to point g) above E] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy	–	10.4	–	–
	A) Where the agreement is made after the 31st day of march,1961 but before 1st April 1976	–	–	–	52
	B) Where the agreement is made after the 31st March, 1976	–	–	–	10.4
j	Income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy	–	10.4	–	–
	A) Where the agreement is made after the 29th February 1964 but before 1st April 1976	–	–	–	52
	B) Where the agreement is made after the 31st March, 1976	–	–	–	10.4
k.	Any other income	–	31.2	–	41.6
196B	Income from units (including long-term capital gain on transfer of such units) to an offshore fund	–	10.4	–	10.4
196C	The Income from foreign currency bonds or GDR of an Indian company (including long-term capital gain on transfer of such bonds or GDR)	–	10.4	–	10.4
196D	Income of foreign Institutional Investors from securities (not being dividend or capital gain arising from such securities)	–	20.8	–	20.8
Note : Further it was said that the rates of TDS are after considering cess @4%
and shall be increased by applicable surcharge.