✔️What is the TDS rate for AY 2020-21?
The following TDS rates are applicable for AY 2020-21: • Salary: Regular Slab Rate or the Rate of Income Tax applicable to the employee based on the slab he/she falls in. • Interest earned on securities: 10% • Dividend income: 10% • Interest earned (other than securities): 10% • Income from lottery/card games and other similar activities: 30% • Income from horse races: 30% • Payments made to contractor/subcontractors: 1% (HUF/Individuals) and 2% (Other Persons) • Insurance Commission: 5% • Commission earned on the sale of lottery tickets: 5% • Any commission or brokerage: 5% • Rent on Plant & Machinery: 2% • Rent on Land/building/furniture/fitting: 10% • Rent payable by HUF or individual not covered under section 194I: 5% • Payment upon the transfer of immovable property (except agricultural land): 1% • Any money paid as the charge for professional services/technical services/remuneration/fee/commission for directors/royalty/copyright: 10%
✔️Can HRA be claimed as a deduction when calculating TDS deduction on salary?
Yes, if the employee declares the amount of money he pays for rent, it can be claimed as an exemption.
✔️How much deduction can I claim under Section 80C on investments when calculating TDS deduction on salary?
The maximum amount that can be claimed under Section 80C of the Income Tax Act is Rs.1.5 lakh.