TDS is to be deducted on payment made as prescribed by Income Tax Act by persons who are liable to deduct TDS. It is the duty of the deductor to deduct TDS as given in Income Tax Act Following are the revised rate of TDS applicable for Financial Year 2016 -2017 Assessment Year 2017-18

Tax Deducted at Source TDS Rate for FY 2015-16 AY 16-17

Nature of Payment

Basic Cutoff (Rs.)

Individuals and HUF

Company / Firm / LLP / Cop Society / Local Authority

If No Pan or Invalid PAN

192 – Salaries

Slab Rate

Slab Rates

Slab Rates

30

192A-Premature withdrawal from Employee Provident Fund ( New Limit wef 01 June 2016)

50000 (New)

30000(old)

NA

10

20

193 - Interest on securities

-

10

10

20

194 - Dividend other than the dividend as referred to in Section 115-O

2500

10

10

20

194A - Interest other than interest on securities - Others

5000

10

10

20

194A - Banks(Time deposits)

10000

10

10

20

194A - Banks (Recurring deposit)

10000

10

10

20

194A - Deposit in Co-op Banks

10000

10

10

20

194B - Winning from Lotteries

10000

30

30

30

194BB - Winnings from Horse Race ( New Limit wef 01 June 2016)

10000(New)

5000 (old)

30

30

30

194C- Payment to Contractor - Single Transaction

30000

1

2

20

194C-Payment to Contractor - Aggregate During the Financial year ( New Limit wef 01 June 2016)

100000(New)

75000 (old)

1

2

20

194C- Contract - Transporter not covered under 44AE (wef 01 June 2015)

30000 / 75000

1

2

20

194C- Contract - Transporter covered under 44AE & submit declaration on prescribed form with PAN (wef 01 June 2015)

-

-

-

20

194D - Insurance Commission

20000

10

10

20

194DA Payment in respect of life insurance policy (New Percentage w.e.f. 01 June 2016)

100000

1 (New)

2 (old)

1 (New)

2 (old)

20

194E - Payment to Non-Resident Sportsmen or Sports Association

-

20

20

20

194EE - Payments out of deposits under NSS (New Percentage w.e.f. 01 June 2016)

2500

10 (New)

20 (Old)

10 (New)

20(Old)

20

194F - Repurchase Units by MFs

-

20

20

20

194G - Commission – Lottery (New Percentage  and Limit w.e.f. 01 June 2016)

15000 (New)

5000 (old)

5 (New)

10 (old)

5 (New)

10 (old)

20

194H - Commission / Brokerage (New Percentage  and Limit w.e.f. 01 June 2016)

5000

5 (New)

10 (old)

5 (New)

10 (old)

20

194I - Rent - Land and Building - furniture - fittings

180000

10

10

20

194I - Rent - Plant / Machinery / equipment

180000

2

2

20

194IA -Transfer of certain immovable property other than agriculture land

5000000

1

1

20

194J - Professional Fees

30000

10

10

20

194LA - Immovable Property (New Percentage  and Limit w.e.f. 01 June 2016)

250000(New)

200000 (old)

10

10

20

194LB - Income by way of interest from infrastructure debt fund (non-resident)

-

5

5

20

194LBB - Income in respect of investment in Securitisation trust. (New Section)

-

25

30

20

Sec 194 LC - Income by way of interest by an Indian specified company to a non-resident / foreign company on foreign currency approved loan / long-term infrastructure bonds from outside India

-

5

5

20

194LD - Interest on certain bonds and govt. Securities

-

5

5

20

196B - Income from units

-

10

10

20

196C-Income from foreign currency bonds or GDR (including long-term capital gains on transfer of such bonds) (not being dividend)

-

10

10

20

196D - Income of FIIs from securities

-

20

20

20

 

 

Due dates for deposit of TDS are as under

Deductions made in the month of March

On or before 30 th April

Deductions made other than month of March and tax on perquisites opted to be deposited by employer

On or before seven days from the close of the month

 

Due dates for TDS quarterly Returns

Quarter

Period

Due Date

Q1

1 Apr - 30 June

15th July

Q2

1 July - 30 Sept

15th Oct

Q3

1 Oct - 31 Dec

15th Jan

Q4

1 Jan - 31 Mar

15th May

 

Notes and Important points to be kept in Mind

  1. TDS is not applicable on service tax part if service tax is shown separately
  2. TCS (Tax Collection at Source)  : Tax to be collected at source at the rate of 1 % on purchase of luxury cars exceeding value of Rs. 10 lakh and purchase of goods and services in cash exceeding Rs. 2 lakh. (Budget 2016 Proposal)
  3. TDS (Tax Deduction at Source):6% withholding tax to be deducted from the payment to a foreign company with no permanent establishment, for online advertisement. Ceiling limit for this purpose will be Rs. 1 Lakh. Levy will only apply to Business to Business Transactions. (Budget 2016 Proposal)
  4. It is also proposed to provide that upon self-certification, no tax will be deducted on rental payments if the income of the payee does not exceed the maximum amount not chargeable to tax. (Budget 2016 Proposal)
  5. An Individual or a Hindu Undivided Family whose total sales ,gross receipts or  turnover from business or profession carried on by him exceeds the monetary limits under Sec.44AB during the preceding financial year shall also be liable to deduct tax
  6. It is proposed to amend section 206AA of the Income-tax Act so as to provide that TDS shall not be deducted at a higher rate in case of non-residents not having PAN, subject to prescribed condition. (Budget 2016 Proposal)
  7. Deduction at lower or nil rate requires certificate u/s.197,which will take effect from the day it is issued. It cannot be used retrospectively.
  8. Interest and penalty will be applicable as per section 201 and section 271c. Imprisonment can be in cases of continuous failure ranging from 3 months to 7 years
  9. Failure to file quarterly TDS Returns in time- late fee @ Rs. 200/- per day (maximum of TDS amount) Section 234E

 

 

For any query you can write to Chirag@cachauhan.in . Before making any decisions do consult your Professional / tax advisor.  Author does not take any responsibility for misrepresentation or interpretation of act or rules. Neither the author nor the firm accepts any liability neither for the loss or damage of any kind arising out of information in this document nor for any action taken in reliance there on.

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Tax Expert
Chartered Accountant, CA Chauhan



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