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
FOR TDS & TCS DEDUCTION RATE CHART FINANCIAL YEAR 2017-18 (ASSESSMENT YEAR 2018-2019) -CLICK HERE
TDS RATES FOR THE FY 2016-17
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 |
Due dates for TCS quarterly Returns
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
- TDS is not applicable on service tax part if service tax 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.
- 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. (Equalisation Levy or Google Tax)
- 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.
- 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
- 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)
- 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