- 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 2018-2019 Assessment Year 2019-20
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 | 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 |
100000 |
1 | 2 | 20 |
194C- Contract – Transporter not covered under 44AE | 30000 / 100000 | 1 | 2 | 20 |
194C- Contract – Transporter covered under 44AE & submit declaration on prescribed form with PAN | – | – | – | 20 |
194D – Insurance Commission | 15000 | 5 | 10 | 20 |
194DA Payment in respect of life insurance policy | 100000 |
1 |
1 |
20 |
194E – Payment to Non-Resident Sportsmen or Sports Association | – | 20 | 20 | 20 |
194EE – Payments out of deposits under NSS | 2500 |
10 |
10 |
20 |
194F – Repurchase Units by MFs | – | 20 | 20 | 20 |
194G – Commission – Lottery |
15000 |
5 |
5 |
20 |
194H – Commission / Brokerage | 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 . 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 |
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
- TDS is not applicable on GST part if taxes is shown separately
- 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)
- 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.
- 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.
- 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
- 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.
- 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.
- 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
- Failure to file quarterly TDS Returns in time- late fee @ Rs. 200/- per day (maximum of TDS amount) Section 234E
**we do not take liability of any kind in case of any error or miscommunication in the article.