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Rates of TDS

Rates of TDS

Rate of TDS (Tax Deducted at Source)

DEDUCTION OF TAX AT SOURCE (TDS)

LIABILITY FOR TDS

Any person responsible for making payment of certain category of incomes is liable to deduct tax at source at an appropriate occasion.

The law prescribes time when the TDS is to be made, rate at which it should be made, when TDS should be paid to the Government and associated administrative responsibilities of payer (tax deductor) and payee (tax deductee) have been prescribed.

A. TDS Rate Chart for A.Y. 2016-17 on Payments other than Salary and Wages

Section   No.

Nature of Payment

Threshold
Total Payment
During the Year

Payment to

Individual
or HUF

Others

1. In the case of a person other than a company

1.1 where the person is resident in India-

192

Payment of salary

-

10%

10%

192A

Payment of accumulated balance of provident fund which is taxable in the hands of an employee (with effect from 01.06.2015).

Rs. 30000/-

10%

10%

193

Interest on Debentures

Rs. 5000/-

10%

10%

194

Deemed Dividend

-

10%

10%

194 A

Interest by banks (Other than interest on securities)

Rs. 10000/-

10%

10%

194 A

Interest by Others (Other than interest on securities)

Rs. 5000/-

10%

10%

194 B

Winnings from Lotteries / Puzzle / Game

Rs. 10000/-

30%

30%

194 BB

Winnings from Horse Race

Rs. 5000/-

30%

30%

194 C (1)

Payment to Contractors

Rs. 30000/-

1%

2%

194 C (2)

Payment to Sub-Contractors / for Advertisements

Rs. 30000/-

1%

2%

194 D

Payment of Insurance Commission

Rs. 20000/-

10%

10%

194 EE

Out of deposits under NSS

Rs. 2500/-

20%

NA

194 G

Commission on Sale of Lottery tickets

Rs. 1000/-

10%

10%

194 H

Commission or Brokerage

Rs. 5000/-

10%

10%

194 I

Rent of Land, Building or Furniture

Rs. 180000/-

10%

10%

194 I

Rent of Plant & Machinery

Rs. 180000/-

2%

2%

194 J

Professional / technical services, royalty

Rs. 30000/-

10%

10%

194 J
(1)

Remuneration / commission to director of the company

-

10%

10%

194 J (ba)

w.e.f. 01 .07.2012, Any remuneration / fees / commission to a director of a company, other than those on which tax is deductible under section 192.

-

10%

10%

194 LA

Compensation on acquisition of certain immovable property

Rs. 2,00,000/-

10%

10%

194 IA

Compensation on transfer of certain immovable property other than agricultural land (w.e.f. 01 .06.2013)

Consideration is
Rs. 50 lakh or
more.

1%

1%

194LD

Interest on certain bonds & Govt. securities (w.e.f. 01 .06.2013)

 

5%

5%

 

  1. Copies of Form Nos. 15G and 15H received by the payer have to be filed with the Chief Commissioner Commissioner within 7 days of the succeeding month.
  2. If the person responsible for deducting and paying tax fails to do so, he shall be considered as an assessee in default, liable to pay interest @ 12% p.a. on the amount of such tax from the date on which such tax was deductible to the date of actual payment, and penalty, not exceeding the amount of tax and rigorous imprisonment ranging from 3 months to 7 years and fine. The interest payment needs to be paid before filing of Quarterly Return.
  3. Sec. 199 – Credit for tax deducted :
    1. Credit will be given for the assessment year in which such income is assessble.
    2. Where such income is assessable in the hands of any other person, credit shall be given to such other person.
    3. When any security, property etc. is jointly owned by two or more persons not constituting partnership, credit for TDS on income there from shall be given to such persons in the proportion in which the income is distributed.
  4. A payee from whose income TDS is made must intimate his PAN to tax deductor. Tax deductor must to quote PAN of payees in TDS Certificate and TDS return [Sec. 139A].
  5. TAN/TDCAN to be quoted on all quarterly statements of TDS/ TCS section 203A(ba).
  6. A declaration for non-deduction of tax u/s. 197A can be furnished by the assessee only if his aggregate income is less than threshold limit. Senior Citizens can file declaration if tax on their estimated total income is likely to be NIL.
  7. Disallowance due to non-deduction: If tax deductible u/ss. 193, 194A, 194C, 194H, 194J and 195 is not deducted/paid before applicable due dates, the relevant expenditure otherwise allowable in computing Total Income of the payer would be liable for disallowance u/s 40(a)(i)/(ia). The deduction will be allowed in the year in which TDS is paid. For details see section 40(a).

 

TIME SCHEDULE

Sl. No.

Section Of Act

Nature of Payment in brief

Cut Off Amount

Rate %

       

HUF/IND

Others

1

192

Salaries

 

Average Rate

2

193

Interest on debentures

 

5000

10

10

3

194

Deemed dividend

 

-

10

10

4

194A

Interest other than Int on securities (by Bank)

 

10000

10

10

4A

194A

Interest other than Int. on securities (By others)

 

5000

10

10

5

194B

Lottery / Cross Word Puzzle

 

10000

30

30

6

194BB

Winnings from Horse Race

 

5000

30

30

7

194C(1)

Contracts *

 

30000

1

2

8

194C(2)

Sub-contracts/ Advertisements *

 

30000

1

2

9

194D

Insurance Commission

 

20000

10

10

10

194EE

Paymentsout of deposits under NSS

 

2500

20

-

11

194F

Repurchase of units by MF/UTI

 

1000

20

20

12

194G

Commission on sale of lottery tickets

 

1000

10

10

13

194H

Commission or Brokerage

 

5000

10

10

14

194I

Rent (Land & building)

 

180000

10

10

Rent (P & M , Equipment, furniture & fittings)

 

180000

2

2

   

15

194J

Professional/Technical charges/Royalty & Non-compete fees

 

30000

10

10

16

194J(1)(ba)

Any remuneration or commission paid to director of the company(Effective from 1 July 2012)

 

NIL

10

10

17

194LA

Compensation on acquisition of immovable property

 

200000

10

10

18

194IA

Payment on transfer of certain immovable property other than agricultural land(applicable only if amount exceeds : (a) Value exceeds INR 50) (Effective from 1 June 2013)

   

1

1

19

194LBA

on income distributed by business trust to its holders ( Sec 194LBA – wef 1.6.15)

 

 

10

10

 

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