TDS Rates Chart for Financial Year 2017-18 / Assessment Year 2018- 19 vide Finance Act 2017 i.e
Budget 201718.
TDS 192 Salary
Monthly at the time of payment where estimated yearly net taxable salary exceeds tax free limit. On the average rates on the basis of per rates for individuals. (30% if no Valid PAN)
192A Payment of accumulated balance due of Employees’ Provident Fund Scheme, 1952, to Employess which is taxable in their hand (w.e.f 01/06/15)
when the amount of payment or aggregate amount of payment exceeds Rs. 30,000/Threshold Limit Increased to Rs. 50,000/ from 01.06.2016 10% (30% if no Valid PAN)
193 (See note 1 )* Interest on securities*
a) any debentures or securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act;
b) any debentures issued by a company where such debentures are listed on a recognised stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder;
c) any security of the Central or State Government;
d) interest on any other security At the time of credit or payment, whichever is earlier, when the amount exceeds Rs. 10,000/In case of Debentures Threshold limit is Rs. 5000/ 10% (20% if no Valid PAN) 4/16/2017 TDS Rates Chart for FY 2017-18 / AY 2018-19
194 Dividend other than the dividend as referred to in Section 115O
Before making payment to’ shareholder, other than dividend declared U/s. 115O, when amount exceeds Rs. 2,500/ 10% (20% if no Valid PAN)
194A (See note 2 to 5)* 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)
194B /194BB Income by way of winnings from lotteries,
crossword puzzles, card games and other games of any sort and Income by way of winnings from horse races Winning from Lotteries 5000 (1April2016 to 31May2016) 10000 (On or after 1Jun2016) HORSE RACE 5000 (1April2016 to 31May2016) 10000 (On or after 1Jun2016 ) 30% (30% if no Valid PAN)
194C (See note 6)* 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 the whole year exceeds Rs. 75,000/ (Increased to Rs. 1 Lakh wef 01.06.2016) 2% – For payments to contractor/Subcontractor who is not an Individual/HUF(20% if no Valid PAN) 1% – For payment to contractor/Subcontractor who is an Individual/HUF(20% if no Valid PAN) 4/16/2017 TDS Rates Chart for FY 2017-18 / AY 2018-19
194D Insurance Commission
At the time of credit or payment, whichever is earlier when the amount exceeds Rs. 20000 (1 April 2016 to 31May 2016) or Rs. 15000 (On or after 1 June2016 ) 10% from 01.04.2016 to 31.05.2016 5% wef 01.06.2016) (20% if no Valid PAN) (Please refer Note
194DA Payment under life insurance policy
(including Bonus) At the time of payment when the amount or the total amount during the whole year exceeds Rs. 1 ,00,000/ 2% (1% wef 01.06.2016) (20% 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% (1April2016 to 31May2016) 10% (on or after 1 Jun2016) (20% if no Valid PAN)
194F Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India
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 wef. 1 st June2016 10% from 01.04.2016 to 31.05.2016 5% wef 01.06.2016 (20% if no Valid PAN) 4/16/2017 TDS Rates Chart for FY 2017-18 / AY 2018-19
194H Payment of commission brokerage
At the time of credit or payment whichever is earlier when the amount exceeds Rs. 5000/ (Rs. 15000 WEF 1 June2016) 10% from 01.04.2016 to 31.05.2016 5% wef 01.06.2016 (20% if no Valid PAN)
194I (See note7) Rent
At the time of credit or payment, whichever is earlier, when the amount exceeds Rs. 1,80,000/ 10% – If rent is for land, building or furniture(20% if no Valid PAN) 2% – If the rent is for Machinery, Plant or Equipment(20% if no Valid PAN)
194IA ((See note8) 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)
194IB Rent payable by an individual or HUF not covered u/s. 194I (W.E.F. from 01.06.2017)
Tax shall be deducted on such income at the time of credit of rent, for the last month of the previous year or the last month of tenancy if the property is vacated during the year, as the case may be, to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier. Threshold limit Rs. 50,000/ per month. TDS to be deducted @ 5% Read TDS on rent made applicable to Individual / HUF even if no Tax Audit
194IC Payment of Consideration (not being in kind) under Joint Development Agreement or other similar agreement
At the time of credit or payment, whichever is earlier. Threshold limit Rs. Nil TDS to be deducted @ 10% (Applicable from 01.04.2017) Read Budget 2017 Changes in capital gain computation joint development agreement 4/16/2017 TDS Rates Chart for FY 2017-18 / AY 2018-19
194J Any sum paid by way of
a) Fee for professional services,
b) Fee for technical services
c) Royalty,
d) Remuneration/fee/commission to a director or
e) For not carrying out any activity in relation to any business
f) For not sharing any knowhow, patent, copyright etc. At the time of credit or payment, whichever is earlier, when the amount exceeds Rs. 30,000/ 10% 2% in case of payments received or credited to a payee, being a person engaged only in the business of operation of call center wef 01.06.2017. (20% if no Valid PAN) Read S.194J TDS rate proposed at 2% on Call Center business Income
194K Income in respect of Units
Omitted w.e.f 01.06.2016 as Section was non operational.
194L Payment of Compensation on acquisition of Capital Asset
Omitted w.e.f 01.06.2016 as Section was non operational
194LA Payment on transfer of certain immovable property other than agricultural land
(Read Note8) 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)
194LB Payment of interest on infrastructure debt fund to nonresident or foreign company
At the time of credit or payment whichever is earlier 5%# (20% if no Valid PAN) Sec
194LBC 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
194LBA 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)
194LBA 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)
194LBB (See note 10) Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)] shall deduct tax therefrom (with effect from 01.06.2015).
At the time of credit or payment whichever is earlier 10% from 1 April 2016 to 31 May 2016 40% For Non Residents (1 Jun 2016 to 31 Mar 2017) 30 % For Non Residents (on or after 1Jun2016 ) (20% or Rate Applicable whichever is higher if no Valid PAN)
194LC Payment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of longterm bonds (including longterm infrastructure bond)
At the time of credit or payment whichever is earlier 5%# Concessional rate of five per cent TDS on interest payment under this section will now be available in respect of borrowings made before the 1st July, 2020. Read Extension of period of concessional tax rate on interest on ECB
194LD (See note9) Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor
At the time of credit or payment whichever is earlier 5%#
195 Other Sums
At the time of credit or payment whichever is earlier Average rates as applicable (See Note 17 & 18)
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 longterm capital gain on transfer of such units) to an offshore fund
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 longterm capital gains on transfer of such bonds) (not being dividend)
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)
# Surcharge, education cess and secondary and higher education cess will be added to the above tax rate, as applicable.
Notes:
1. Securities includes listed as well as unlisted debentures issued by companies in which public are substantially interested.
2. In case of interest payment on time deposits by cooperative banks to its members the TDS Provision is applicable from 162015.
3. 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
4. As per amended definition of ‘time deposits’ under section 194(3) it now includes include recurring deposits also. This implies that now, interest on recurring deposits is also subject to TDS.
5. Bankwise Income to be considered for TDS deduction on time deposits instead of Branch Section 194AAmendment in provisions related to TDS on interest
6. a) 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
b) 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.
7. No TDS deduction shall be made under section 194I 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. (wef 01042015) – Read MoreTax Regime for Real Estate Investment Trusts and Infrastructure Investment Trusts
8. In case of section 194LA, the subregistrar shall register the document only after the challan for payment of TDS is presented before him. It is proposed to amend the section 194LA to provide that no deduction shall be made under this section where such payment is made in respect of any award or agreement which has been exempted from levy of incometax under section 96 (except those made under section 46) of RFCTLARR Act. This amendment will take effect from 1st April, 2017. No tax deduction on compensation under RFCTLAAR Act, 2013
9. Concessional rate of 5% withholding tax on interest payment under section 194LD will now be available on interest payable before the 1st July, 2020. Extension of eligible period of concessional tax rate U/s. 194LD
10. 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
11. Section 195 has been amended to provide furnishing of information in Form 15CA and 15CB for payments to a non resident/foreign company irrespective to the fact that whether or not those payments were chargeable under Income tax Act. (wef 01062015) – Rationalisation of provisions relating to TDS and TCS
12. If the payment is made to a person (including non resident) whose receipts are subject to TDS shall mandatory furnish his PAN to the deductor (even though the deductee file a declaration in form no. 15G or 15H) otherwise the deductor shall deduct the TDS at higher of the following rates
– The applicable rate prescribed in the Act or
– The rate mentioned in the Finance Act or
– 20%
13. Surcharge on TDS on payments made to nonresident person and company other than a domestic company
a) Surcharge Rate (%) Non Residents other than company (if income exceeds Rs. 50 Lakh but not exceeds Rs. 1 Crore) 10%
Non Residents other than company (if income exceeds Rs. 1 Crore) 15%
Non Resident companies if income is between Rs. 1 Crore and 10 Crore 2%
Non Resident companies if income is greater than Rs. 10 Crore 5%
Surcharge on Coperative Society & Firms in case of NonResidents (if income exceeds Rs. 1 crore) 12%
b) Surcharge on tax is not deductible/collectible at source in case of resident individual/ HUF /Firm/LLP/ AOP / BOI/Domestic Company in respect of payment of income other than salary.
14. Education Cess on payments made to nonresident person and company other than a domestic company
a) Non Resident & Foreign Companies– “Education Cess on incometax” and “Secondary and Higher Education Cess on incometax” shall continue to be levied at the rate of two per cent. and one per cent. respectively, of income tax including surcharge wherever applicable.
b) Other Resident Assessees Education Cess is not deductible/collectible at source in case of resident Individual/HUF/Firm/ AOP/ BOI/ Domestic Company in respect of payment of income other than salary.Education Cess @ 2% plus secondary & Higher Education Cess @ 1% is deductible at source in case of nonresidents and foreign company.
15. NO TDS on service tax component comprised in the payments made to residents – Circular No. 1/2014 , Dated 1312014
16. Amendment in TDS Rates & Threshold limit wef 01.06.2016
17. Deduction under Section 195 of Income Tax Act, 1961, In the case of a person other than a company who is not resident in IndiaSection
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