TDS RATES CHART
FOR F.Y 2016-17/A.Y 2017-18
Dear all,
As you are aware new finance act has come in force in the month of MAY-2016. Thus, we would like to bring it to your notice TDS/TCS Rates Chart for F.Y 2016-17/ A.Y 2017-18. Some of these amendments takes effect from 01.04.2016 and other have taken effect from 01.06.2016.
Kindly note important amendment regarding TCS on
1) Car sale @ 1%
2) Sale of Goods and services in cash above 2 lacs @ 1%
Please see below chart for your all TDS and TCS deductions rates. In case of any queries, please call 02402333920 or mail us on incometax@vpshinde.com
Thanks & regards.
CA Aditya Shinde
Tax Deducted at Source (TDS) and Tax collected at source (TCS) Rate Chart/Slab
for F. Y. 2016-17 / A. Y. 2017-18 - onwards
Frequently used sections
|
Section |
Nature of Income |
When to deduct TDS |
Rate of TDS/TCS |
Notes |
|
206C(1) |
Sale of Motor Vehicle |
Where the value of motor vehicle exceeds Rs. 10 Lacs. |
TCS @ 1% w.e.f 1st June 2016 |
|
|
206(1D) |
Every person being a Seller of Bullion Or Jewellery, Sales any goods in cash and renders any services. |
where consideration exceeds Rs. 2 Lakhs. |
TCS @ 1% w.e.f 1st June 2016 |
Refer Note No.6 |
|
192 |
Salary |
Monthly- at the time of payment where estimated yearly net taxable salary exceeds tax free limit. |
On the average rates on the basis of per rates for individuals. (30% if no Valid PAN) |
- |
|
194A |
Interest other than “Interest on securities” |
At the time of credit or payment, whichever is earlier, when the amount exceeds Rs.5,000/-. However, limit is Rs. 10,000/- in case of interest credited by banks including co‑operative banks to its members. |
10% (20% if no Valid PAN) |
Refer Note No. 1 and 2 |
|
194C |
Payment to contractors/ subcontractors |
At the time of credit or payment, whichever is earlier, when the amount of a particular contract exceeds Rs. 30,000/- or the total amount of contract during the whole year exceeds Rs. 75,000/- (Increased to Rs. 1 Lacs w.e.f. 01.06.2016) |
2% – Ind./HUF (20%if no Valid PAN) 1% Other than Ind. /Huf. |
Refer Note No. 3 and 4 |
|
194H |
Payment of commission Brokerage |
At the time of credit or payment whichever is earlier when the amount exceeds Rs. 5000/- (Rs.15000 W. e. f. 1-June-2016) |
10% from 01.04.2016 to 31.05.2016 5% w.e.f 01.06.2016(20% if no Valid PAN) |
- |
|
194I |
Rent |
At the time of credit or payment, whichever is earlier, when the amount exceeds Rs. 1,80,000/- |
10% – If rent is for land, building or furniture (20% if no Valid PAN) 2% – If the rent is for P&M & Equip.(20% if no Valid PAN) |
Refer Note No. 5 |
|
194IA |
Payment on transfer of certain immovable property other than agriculture land. |
At the time of credit or payment, whichever is earlier, when the land is situated in specified area when amount exceeds Rs. 50 lacs |
1% (20% if no Valid PAN) |
|
|
194J |
Fee for Professionals |
At the time of credit or payment, whichever is earlier, when the amount exceeds Rs. 30,000/- |
10% (20% if no Valid PAN) |
Notes :
<!1)In case of interest payment on time deposits by co-operative banks to its members the TDS Provision is applicable from 1-6-2015. TDS provisions under Section 194A shall not apply to income paid by way of interest on the compensation amount awarded by the Motor Accidents Claims Tribunal where the amount of such income does not exceed Rs. 50000/- and further TDS on interest payment on compensation amount awarded by Motor Accident Claim Tribunal is deductible at the time of payment instead of accrual (WEF 01.06.2015)- Section 194A- Amendment in provisions related to TDS on interest.
<!2) Bank wise deduction to be considered for TDS Deduction on Time Deposits instead of Branch - Section 194A- Amendment in provisions related to TDS on interest.
<!3)From 01.06.2015 – If the payment is made to contractor/sub contractor in transport business, no TDS shall be deducted at source in the course of payment for plying, hiring or leasing goods carriages if the contractor provides PAN Number and such contractor owns ten or less goods carriage at any time during the previous year and furnishes a declaration to that effect. (WEF 01.06.2015)- TDS deductible on Payment to Transporters owing more than 10 goods carriage.
<!4)Up to 31.05.2015– No deduction shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of a contractor during the course of business of plying, hiring or leasing goods carriages on furnishing of his Permanent Account Number, to the person paying or crediting such sum.
<!5)No TDS deduction shall be made under section 194-I of the Act where the income by way of rent is credited or paid to a business trust, being a real estate investment trust (REIT), in respect of any real estate asset held directly by such REIT. (w.e.f 01-04-2015) – Read More- Tax Regime for Real Estate Investment Trusts and Infrastructure Investment Trusts.
<!6)However tax is not required to be collected at source where tax is deducted at source by the payer under chapter XVII-B.
Non Frequently used sections
|
192A |
Payment of accumulated balance due of Employees’ Provident Fund Scheme, 1952, to Employees which is taxable in their hand (w.e.f 01-06-15) |
when the amount of payment or aggregate amount of payment exceeds Rs. 30,000/ Threshold Limit Increased to Rs. 50,000/- from 01.06.2016 |
10% (30% if no Valid PAN) |
|
|
193 |
Interest on securities |
At the time of credit or payment, whichever is earlier, when the amount exceeds Rs.10,000/-. In case of Debentures Threshold limit is 5000/- |
10% (20% if no Valid PAN) |
|
|
194 |
Dividend other than the dividend as referred to in Section 115-O |
Before making payment to’ shareholder, other than dividend declared U/s. 115-0, when amount exceeds Rs. 2,500/- |
10% (20% if no Valid PAN) |
|
|
194D |
Insurance Commission |
At the time of credit or payment, whichever is Earlier when the amount Exceeds Rs. 20000 (1-April-2016 to31-May-2016) or Rs. 15000 (1-June-2016 to 31-Mar-2017) |
10% from 01.04.2016 to 31.05.2016 5% W.e.f 01.06.2016) (20% if no Valid PAN) |
|
|
194DA |
Payment under life insurance policy (including Bonus) |
At the time of payment when the amount or the total amount during the whole year exceeds Rs.1,00,000/- |
Earlier 2% (1% w.e.f 01.06.2016) (20% if no Valid PAN) |
|
|
194LA |
Payment on transfer of certain immovable property other than agricultural land on compulsory acquisition under the law |
At the time of credit or payment whichever is earlier if amount exceeds Rs. 200000 between 1- April-2016 to 31-May-2016 or Rs. 250000 after 1-June-2016 |
10% (20% if no Valid PAN) |
Refer Note No. 7 |
|
194B/ 194BB |
Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort and Income by way of winnings from horse races. |
Winning from Lotteries Rs. 5000 From (1/04/16 to 31/05/16) Rs. 10000 From (1/06/16 to 31/03/17) HORSE RACE Rs. 5000 From (1/04/16 to 31/05/16) Rs. 10000 From (1/06/16 to 31/03/17) |
30% (30% if no Valid PAN) |
|
|
194E |
Payment to Non-Resident Sportsmen or Sports Association |
At the time of credit or payment, whichever is earlier. |
20% (20% if no Valid PAN) |
|
|
194EE |
Payment in respect of deposit under National Savings scheme (NSS) |
At the time of credit or payment, whichever is earlier when the amount exceeds Rs. 2500/- |
20% (1-April-2016 to 31-May-2016) 10% (1-Jun-2016 to 31-Mar-2017) (20% if no Valid PAN) |
|
|
194F |
Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India |
At the time of credit or payment, whichever is earlier |
20% (20% if no Valid PAN) |
|
|
194G |
Commission on sale of lottery tickets |
At the time of credit or payment, whichever is earlier when the amount exceeds Rs. 1,000/- (1-April-2016 to 31-May-2016) or Rs. 15000 w.e.f. 1st June- 2016 |
10% from 01.04.2016 to 31.05.2016 5% wef 01.06.2016) (20% if no Valid PAN) |
|
|
194K |
Income in respect of Units |
Omitted w.e.f 01.06.2016 as Section was non operational. |
||
|
194L |
Payment of Compensation on acquisition of Capital Asset |
Omitted w.e.f 01.06.2016 as Section was non operational |
||
|
194LB |
Payment of interest on infrastructure debt fund to non-resident or foreign company |
At the time of credit or payment whichever is earlier |
5% (20% if no Valid PAN) |
|
|
194 LBC |
Income in respect of investment in securitisation trust. (From 01.06.2016) |
25% For Residents individual or HUFs and 30%For other Residents 40% For Non Residents Companies and 30% For Non Residents other than Company |
||
|
194 LBA |
Certain income from units of a business trust (applicable from 01.10.2014) |
At the time of credit or payment whichever is earlier |
10% (20% if no Valid PAN) |
|
|
194 LBA |
194LBA – Certain income from units of a business trust to non-resident (applicable from 01.10.2014) |
At the time of credit or payment whichever is earlier |
5% (20% if no Valid PAN) |
|
|
194 LBB |
Investment fund paying an income to a unit holder shall deduct tax there from (with effect from 01.06.2015). |
At the time of credit or payment whichever is earlier |
10% For residents. (As per rates in force for Non Residents.) |
Refer Note No. 9 |
|
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 byway of issue of long-term bonds (including long term infrastructure bond) |
At the time of credit or payment whichever is earlier |
5% |
|
|
194LD |
Payment of interest on rupee denominated bond of an Indian Company or Govt. securities to Foreign Institutional Investor or a Qualified Foreign Investor |
At the time of credit or payment whichever is earlier. |
5% |
Refer Note No. 8 |
|
195 |
Other Sums |
At the time of credit or payment whichever is earlier |
Average rates as Applicable. |
Refer Note No. 10, 11 & 12 |
|
196A |
Foreign comp unit holder of MF |
At the time of credit or payment whichever is earlier |
10 % In case of a Company 20% In the case of a person other than a company |
|
|
196B |
Income from units (including long-term capital gain on transfer of such units) to an offshore fund |
At the time of credit or payment whichever is earlier |
10% (20% if no Valid PAN) |
|
|
196C |
Income from foreign currency bonds or GDR (including long-term capital gains on transfer of such bonds) (not being dividend) |
At the time of credit or payment whichever is earlier |
10% (20% if no Valid PAN) |
|
|
196D |
Income of FIIs from securities |
At the time of credit or payment whichever is earlier |
20% (20% if no Valid PAN) |
Notes :
<!7)In case of section 194LA, the sub-registrar shall register the document only after the challan for payment of TDS is presented before him.
<!8)Concessional rate of 5% withholding tax on interest payment under section 194LD will now be available on interest payable upto 30th June, 2017. – Extension of eligible period of concessional tax rate U/s. 194LD.
<!9)TDS on Income in respect of units of investment fund- New section 194LBB to provide for TDS @ 10% on payments to a unit holder in respect of units of Investment Fund u/s 115UB – Pass through status to Category –I and II Alternative Investment Funds
<!10) Section 195 has been amended to provide furnishing of information in Form 15CA and 15CB for payments to a 6/9 non resident/foreign company irrespective to the fact that whether or not those payments were chargeable under Income tax Act. (w.e.f 01-06-2015) – Rationalisation of provisions relating to TDS and TCS
<!11)Deduction under Section 195 of Income Tax Act, 1961, In the case of person other than a company who is not resident in India-
|
Sr.No. |
Payment of any other sum to Non Resident |
TDS Rate |
|
1 |
Income in respect of investment made by a Non-resident Indian Citizen |
20% |
|
2 |
Income by way of long-term capital gains referred to in Section 115E in case of a Non-resident Indian Citizen |
10% |
|
3 |
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 |
Income by way of short-term capital gains referred to in Section 111A |
15% |
|
5 |
Any other income by way of long-term capital gains |
20% |
|
6 |
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% |
|
7 |
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% |
|
8 |
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 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% |
|
9 |
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% |
|
10 |
Any other income |
30% |
<!12) Deduction under Section 195 of Income Tax Act, 1961, where the company is not a domestic company-
|
Sr.No. |
Payment of any other sum |
TDS Rate |
|
1 |
Income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-section (1) of Section 112 |
20% |
|
2 |
Income by way of short-term capital gains referred to in Section 111A |
10% |
|
3 |
Any other income by way of long-term capital gains |
10% |
|
4 |
Income by way of short-term capital gains referred to in Section 111A |
15% |
|
5 |
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% |
|
6 |
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 after the 31st day of March, 1976 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 |
20% |
|
7 |
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 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— a)where the agreement is made after the 31st day of March, 1961 but before the 1st day of April, 1976 b)where the agreement is made after the 31st day of March, 1976 |
50% 10% |
|
8 |
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— a)where the agreement is made after the 29th day of February, 1964 but before the 1st day of April, 1976 b) where the agreement is made after the 31st day of March, 1976 c) Any other income |
50% 10% 4% |