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 @ w.e.f 1st June 2016 | |
| 206(1D) | Every person being a Seller of Bullion Or Jewellery,
| where consideration exceeds Rs. 2 Lakhs. | TCS @ w.e.f 1st June 2016 | Refer Note No.6 |
| 192 | Salary | Monthly- at the time of payment where estimated yearly net | On the average rates on the basis of per rates for individuals. (30% if no | – |
| 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 (Increased to Rs. 1 Lacs w.e.f. 01.06.2016) | 2% – Ind./HUF (20%if 1% | 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. | 10% – If rent is for land, (20% if no Valid PAN) 2% – If the rent is for P&M & Equip.(20% if no Valid | 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 | 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 | when the amount of payment or aggregate amount of payment exceeds Rs. 30,000/ Threshold Limit Increased to Rs. 50,000/- | 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 | 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 | 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, 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 | 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 | 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 | ||
| 194L | Payment of Compensation on acquisition of Capital Asset | Omitted w.e.f 01.06.2016 | ||
| 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 [other than (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 | At the time of credit or payment whichever is earlier | 5% | |
| 194LD | Payment of interest on rupee denominated bond of an Indian | 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 | 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 | 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 | 20% |
| 2 | Income by way of long-term | 10% |
| 3 | Income by way of long-term capital gains referred to | 10% |
| 4 | Income by way of short-term capital gains referred to | 15% |
| 5 | Any other income by way of long-term capital gains | 20% |
| 6 | Income by way of interest payable by Government or an | 20% |
| 7 | Income by way of royalty payable by Government or an | 10% |
| 8 | Income by way of royalty [not being royalty of the |
|
| 9 | Income by way of fees for technical services payable | 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 Section 112 | 20% |
| 2 | Income by way of short-term capital gains referred to | 10% |
| 3 | Any other income by way of long-term capital gains [not clauses (33), (36) and (38) of Section 10] | 10% |
| 4 | Income by way of short-term capital gains referred to | 15% |
| 5 | Income by way of interest payable by Government or an incurred by Government or the Indian concern in referred to in Section 194LB or Section 194LC) | 20% |
| 6 | Income by way of royalty payable by Government or an | 20% |
| 7 | Income by way of royalty [not being royalty of the a) b)where the agreement is made after the 31st day of March, 1976 | 50% 10% |
| 8
| Income by way of fees for 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% |
