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 2017-2018 Assessment Year 2018-19

 

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	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	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	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	1)	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	10	20
194F – Repurchase Units by MFs	–	20	20	20
194G – Commission – Lottery (New Percentage  and Limit w.e.f. 01 June 2016)	15000	5	5	20
194H – Commission / Brokerage (New Percentage  and Limit w.e.f. 01 June 2016)	5000	5	5	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
194IB – Rent payable by an individual or HUF not covered u/s. 194I	50000 PM	5	5	20
194IC – Payment of Consideration (not being in kind) under Joint Development Agreement or other similar agreement	NIL	10	10	20
194J – Professional Fees	30000	10	10	20
Payment to CALL CENTER	30000	2	2	20
194LA – Immovable Property (New Percentage  and Limit w.e.f. 01 June 2016). No TDS in case of right of fair compensation act.	250000	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

 

Introduced in 2017 budget.

Sl. No.	Section	Nature	Pre-amendment	Post amendment
1.	194IB	Rent payable by an individual or HUF not covered u/s. 194I	New provision	Threshold limit Rs.50,000/- per month.TDS to be deducted @ 5%
2.	194IC	Payment of Consideration (not being in kind) under Joint Development Agreement or other similar agreement	New Provision	Threshold limit Rs. NilTDS to be deducted @ 10%
3.	194J	Payment to Professionals	TDS Rate 10%	TDS rate will be 2% if the payee is engaged in the business of operation of call centre

 

TCS RATES FOR THE FY 2016-17

The Tax Collection at Source Rates for the Financial Year 2016-17 is tabulated below:

Sl.No.	Nature of Goods	Rates in %
1.	Alcoholic liquor for human Consumption		1
2.	Tendu leaves		5
3.	Timber obtained under forest lease		2.5
4.	Timber obtained by any mode other than a forest lease		2.5
5.	Any other forest produce not being timber or tendu leaves		2.5
6.	Scrap		1
7.	Parking lot		2
8.	Toll plaza		2
9.	Mining & Quarrying		2
10	Minerals, being coal or lignite or iron ore		1
11	Bullion or jewellery (if the sale consideration is paid in cash exceeding INR 2 lakhs)		1
12	Motor Car (if the sale consideration is paid in cash exceeding INR 10 lakhs)		1

 

 

 

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

Due dates for TDS quarterly Returns
Quarter	Period	Due Date
Q1	1 Apr – 30 June	31st July
Q2	1 July – 30 Sept	31st Oct
Q3	1 Oct – 31 Dec	31st Jan
Q4	1 Jan – 31 Mar	31st 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.
4. 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.
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. 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.
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