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TDS & TCS DEDUCTION RATE CHART FINANCIAL YEAR 2017-18 (ASSESSMENT YEAR 2018-2019)

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 PaymentBasic Cutoff (Rs.)Individuals and HUFCompany / Firm / LLP / Cop Society / Local AuthorityIf No Pan or Invalid PAN
192 – SalariesSlab RateSlab RatesSlab Rates30
192A-Premature withdrawal from Employee Provident Fund ( New Limit wef 01 June 2016)50000NA1020
193 – Interest on securities101020
194 – Dividend other than the dividend as referred to in Section 115-O2500101020
194A – Interest other than interest on securities – Others5000101020
194A – Banks(Time deposits)10000101020
194A – Banks (Recurring deposit)10000101020
194A – Deposit in Co-op Banks10000101020
194B – Winning from Lotteries10000303030
194BB – Winnings from Horse Race ( New Limit wef 01 June 2016)10000303030
194C- Payment to Contractor – Single Transaction300001220
194C-Payment to Contractor – Aggregate During the Financial year ( New Limit wef 01 June 2016)1000001220
194C- Contract – Transporter not covered under 44AE (wef 01 June 2015)30000 / 750001220
194C- Contract – Transporter covered under 44AE & submit declaration on prescribed form with PAN (wef 01 June 2015)20
194D – Insurance Commission20000101020
194DA Payment in respect of life insurance policy (New Percentage w.e.f. 01 June 2016)10000011)20
194E – Payment to Non-Resident Sportsmen or Sports Association202020
194EE – Payments out of deposits under NSS (New Percentage w.e.f. 01 June 2016)2500101020
194F – Repurchase Units by MFs202020
194G – Commission – Lottery (New Percentage  and Limit w.e.f. 01 June 2016)150005520
194H – Commission / Brokerage (New Percentage  and Limit w.e.f. 01 June 2016)50005520
194I – Rent – Land and Building – furniture – fittings180000101020
194I – Rent – Plant / Machinery / equipment1800002220
194IA -Transfer of certain immovable property other than agriculture land50000001120
194IB – Rent payable by an individual or HUF not covered u/s. 194I50000 PM5520
194IC – Payment of Consideration (not being in kind) under Joint Development Agreement or other similar agreementNIL101020
194J – Professional Fees30000101020
         Payment to CALL CENTER300002220
194LA – Immovable Property (New Percentage  and Limit w.e.f. 01 June 2016). No TDS in case of right of fair compensation act.250000101020
194LB – Income by way of interest from infrastructure debt fund (non-resident)5520
194LBB – Income in respect of investment in Securitisation trust. (New Section)253020
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 India5520
194LD – Interest on certain bonds and govt. Securities5520
196B – Income from units101020
196C-Income from foreign currency bonds or GDR (including long-term capital gains on transfer of such bonds) (not being dividend)101020
196D – Income of FIIs from securities202020

 

Introduced in 2017 budget.

Sl. No.SectionNaturePre-amendmentPost amendment
1.194IBRent payable by an individual or HUF not covered u/s. 194INew provisionThreshold limit Rs.50,000/- per month.TDS to be deducted @ 5%
2.194ICPayment of Consideration (not being in kind) under Joint Development Agreement or other similar agreementNew ProvisionThreshold limit Rs. NilTDS to be deducted @ 10%
3.194JPayment to ProfessionalsTDS 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 GoodsRates in %
1.Alcoholic liquor for human Consumption1
2.Tendu leaves5
3.Timber obtained under forest lease2.5
4.Timber obtained by any mode other than a forest lease2.5
5.Any other forest produce not being timber or tendu leaves2.5
6.Scrap1
7.Parking lot2
8.Toll plaza2
9.Mining & Quarrying2
10Minerals, being coal or lignite or iron ore1
11Bullion or jewellery (if the sale consideration is paid in cash exceeding INR 2 lakhs)1
12Motor 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 MarchOn or before 30 th April
Deductions made other than month of March and tax on perquisites opted to be deposited by employerOn or before seven days from the close of the month

 

Due dates for TDS quarterly Returns

Due dates for TDS quarterly Returns
QuarterPeriodDue Date
Q11 Apr – 30 June31st July
Q21 July – 30 Sept31st Oct
Q31 Oct – 31 Dec31st Jan
Q41 Jan – 31 Mar31st 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
Abhishek Sharma

Abhishek Sharma

Is a Practicing CA from Delhi .
Abhishek Sharma

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