TDS Rate Chart for F.Y. 2016-17

 

TDS RATES CHART

FOR F.Y 2016-17/A.Y 2017-18

Dear all,

 

As you are aware new finance act has come in force in the month of MAY-2016. Thus, we would like to bring it to your notice TDS/TCS Rates Chart for F.Y 2016-17/ A.Y 2017-18. Some of these amendments takes effect from 01.04.2016 and other have taken effect from 01.06.2016.

 Kindly note important amendment regarding TCS on

1)   Car sale @ 1%

2)   Sale of Goods and services in cash above 2 lacs @ 1%

 

Please see below chart for your all TDS and TCS deductions
rates. In case of any queries, please call 02402333920 or mail us on
incometax@vpshinde.com

 

 

Thanks
& regards.

CA Aditya Shinde

 

 

Tax Deducted at Source
(TDS) and Tax collected at source (TCS) Rate Chart/Slab

for F. Y. 2016-17 / A. Y.
2017-18 – onwards

 

Frequently used sections

 

Section

Nature of Income

When to deduct TDS

Rate of

  TDS/TCS

Notes

 

206C(1)

Sale of Motor Vehicle

 

Where the value of motor vehicle exceeds Rs. 10 Lacs.

    

      TCS @
1%

w.e.f

1st June 2016

 

206(1D)

Every person being a Seller of Bullion Or Jewellery,
Sales any goods
in cash
and renders any services.

 

where consideration exceeds Rs. 2 Lakhs.

     

      TCS @
1%

w.e.f

1st June 2016

 

  Refer

  Note

  No.6

 

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
)

 

194A

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 cooperative

banks to its members.

10%

 

(20% if no Valid

PAN)

 

 

Refer Note No.

1 and 2

194C

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 Lacs

w.e.f.  01.06.2016)

2% – Ind./HUF

 

(20%if
no Valid PAN)

 

1%
Other than Ind. /Huf.

 

 

 

Refer

Note

No.

3 and 4

194H

Payment of commission

Brokerage

At the time of credit or

payment whichever is

earlier when the amount

exceeds Rs. 5000/-

(Rs.15000 W. e. f.

 1-June-2016)

10% from

01.04.2016 to

31.05.2016

5% w.e.f 01.06.2016(20% if no Valid PAN)

194I

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 P&M & Equip.(20% if no Valid
PAN)

 

 

Refer

Note

No. 5

 

194IA

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)

 

194J

Fee
for Professionals

At the time of credit or

payment, whichever is

earlier, when the amount

exceeds Rs. 30,000/-

            10%

 

(20% if no Valid

PAN)

 

 

        Notes :

 

<!1)
In case of interest payment on time deposits by co-operative
banks to its members the TDS Provision is applicable from 1-6-2015
. 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.

 

<!2) Bank wise deduction to be considered for TDS Deduction on Time Deposits instead of
Branch – Section 194A- Amendment in provisions related
to TDS on interest.

 

<!3)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.

 

<!4)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.

 

<!5)No TDS deduction shall be made under section 194-I 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. (w.e.f 01-04-2015) – Read More-
Tax Regime for Real Estate Investment Trusts and
Infrastructure Investment Trusts.

 

<!6)However tax is not
required to be collected at source where tax is deducted at source by the payer under chapter XVII-B.

 

 

 

 

 

Non Frequently used sections

 

 

192A

Payment
of accumulated balance due of Employees’ Provident Fund Scheme, 1952, to
Employees 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

Interest on securities

 

 

 

At the time of credit or

payment, whichever is

earlier, when the amount exceeds Rs.10,000/-.

In case of Debentures Threshold limit is 5000/-

10%

 

(20% if no Valid

PAN)

 

194

Dividend other than the dividend as referred to in Section 115-O

Before making payment

to’ shareholder, other

than dividend declared

U/s. 115-0, when

amount exceeds Rs.

2,500/-

10%

 

(20% if no Valid

PAN)

 

194D

Insurance Commission

At the time of credit or payment, whichever is

Earlier when the amount

Exceeds Rs. 20000

(1-April-2016 to31-May-2016) or

Rs. 15000 (1-June-2016 to 31-Mar-2017)

10% from

01.04.2016 to

31.05.2016

 

5% W.e.f 01.06.2016)

(20% if no Valid PAN)

 

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/-

Earlier 2%

(1% w.e.f 01.06.2016)

(20% if no Valid PAN)

 

194LA

Payment on transfer of certain immovable

property other than agricultural land on compulsory
acquisition under the law

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)

 

 

    Refer

    Note  

    No. 7

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

Rs. 5000 From

(1/04/16 to 31/05/16)

Rs. 10000 From

(1/06/16 to 31/03/17)

 

HORSE RACE

Rs. 5000 From

(1/04/16 to 31/05/16)

Rs. 10000 From

 (1/06/16 to
31/03/17)

30%

 

(30% 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%

 (1-April-2016

to 31-May-2016)

       

         10%

(1-Jun-2016 to

31-Mar-2017) (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 w.e.f. 1st June-

2016

10% from

01.04.2016 to

31.05.2016

 

5% wef

01.06.2016)

(20% if no Valid PAN)

 

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

 

 

194LB

Payment of interest on infrastructure debt fund to

non-resident or foreign company

At the time of credit or

payment whichever is

earlier

          5%

 

(20% if no Valid

 PAN)

 

194

LBC

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

 

 

194

LBA

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)

 

194

LBA

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)

 

194

LBB

Investment fund paying an income to a unit holder [other than
income which is exempt under Section 10(23FBB)] shall deduct tax there from

(with effect from 01.06.2015).

At the time of credit or

payment whichever is

earlier

    10% For

    residents.

 

(As per rates in force for Non Residents.) 

 

 

 

    Refer

    Note  

    No. 9

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 byway of issue of long-term bonds
(including long term infrastructure bond)

At the time of credit or

payment whichever is

earlier

        

          5%

 

194LD

Payment of interest on rupee denominated bond of an Indian
Company or Govt. securities to Foreign Institutional Investor or a Qualified Foreign
Investor

At the time of credit or

payment whichever is

earlier.

         5%

 

 

 

   Refer

   Note  

   No. 8

195

Other Sums

At the time of credit or

payment whichever is

earlier

Average rates as

Applicable.

   Refer   

  Note No.  

   10, 11

    & 12

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 long-term 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 long-term
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)

 

 

 

        Notes :

 

<!7)In case of section 194LA, the sub-registrar shall register the document only after the challan for payment of TDS is presented before him.

 

<!8)Concessional rate of 5% withholding tax on interest payment under section 194LD will now be available on  interest payable upto 30th June, 2017. – Extension of eligible period of concessional tax rate U/s. 194LD.

<!9)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

 

<!10) Section 195 has been amended to provide furnishing of information in Form 15CA and 15CB for payments to a 6/9 non resident/foreign company irrespective to the fact that whether or not those payments were chargeable
under Income tax Act. (w.e.f 01-06-2015) –
Rationalisation of provisions relating to TDS and TCS

 

<!11)Deduction under Section 195 of Income Tax Act,
1961, In the case of 
person other than a company who is not resident in India-  

 

Sr.No.

Payment of any other sum to Non Resident

TDS Rate

 

 

 

1

Income in respect of investment made by a Non-resident
Indian Citizen

       20%

2

Income by way of long-term
capital gains referred to in Section 115E in case of a Non-resident Indian Citizen

       10%

3

Income by way of long-term capital gains referred to
in sub-clause (iii) of clause (c) of sub-Section (1) of Section 112

       10%

4

Income by way of short-term capital gains referred to
in Section 111A

       15%

5

Any other income by way of long-term capital gains
[not being long-term capital gains referred to in clauses (33), (36) and (38)
of Section 10
]

       20%

6

Income by way of interest payable by Government or an
Indian concern on moneys borrowed or debt incurred by Government or the
Indian concern in foreign currency (not being income by way of interest
referred to in Section 194LB or Section 194LC)

 

 

       20%

7

Income by way of royalty payable by Government or an
Indian concern in pursuance of an agreement made by it with the Government or
the Indian concern where such royalty is in consideration for the transfer of
all or any rights (including the granting of a licence) in respect of
copyright in any book on a subject referred to in the first proviso to
sub-section (1A) of Section 115A of the Income-tax Act, to the Indian
concern, or in respect of any computer software referred to in the second
proviso to sub-section (1A) of Section 115A of the Income-tax Act, to a
person resident in India.

    

 

       10%

8

Income by way of royalty [not being royalty of the
nature referred to point g) above E] payable by Government or an Indian
concern in pursuance of an agreement made by it with the Government or the Indian
concern and where such agreement is with an Indian concern, the agreement is
approved by the Central Government or where it relates to a matter included
in the industrial policy, for the time being in force, of the Government of
India, the agreement is in accordance with that policy

 

 

 

 


10%

 

 

 

9

Income by way of fees for technical services payable
by Government or an Indian concern in pursuance of an agreement made by it
with the Government or the Indian concern and where such agreement is with an
Indian concern, the agreement is approved by the Central Government or where
it relates to a matter included in the industrial policy, for the time being
in force, of the Government of India, the agreement is in accordance with
that policy

 

 

 

        10%

 

10

Any other income

        30%

 

<!12) Deduction under Section 195 of Income Tax Act, 1961, where the company is not a domestic company-

 

Sr.No.

Payment of any other sum

TDS Rate

 

 

 

1

Income by way of long-term capital gains referred to
in sub-clause (iii) of clause (c) of sub-section (1) of

Section 112

       20%

2

Income by way of short-term capital gains referred to
in Section 111A

       10%

3

Any other income by way of long-term capital gains [not
being long-term capital gains referred to in

clauses (33), (36) and (38) of Section 10]

       10%

4

Income by way of short-term capital gains referred to
in Section 111A

       15%

5

Income by way of interest payable by Government or an
Indian concern on moneys borrowed or debt

incurred by Government or the Indian concern in
foreign currency (not being income by way of interest

referred to in Section 194LB or Section 194LC)

       20%

6

Income by way of royalty payable by Government or an
Indian concern in pursuance of an agreement made by it with the Government or
the Indian concern after the 31st day of March, 1976 where such royalty is in
consideration for the transfer of all or any rights (including the granting
of a licence) in respect of copyright in any book on a subject referred to in
the first proviso to sub-section (1A) of Section 115A of the Income-tax Act,
to the Indian concern, or in respect of any computer software referred to in
the second proviso to sub-section (1A) of Section 115A of the Income-tax Act,
to a person resident in India

 

 

       20%

7

Income by way of royalty [not being royalty of the
nature referred to in point e) above C] payable by Government or an Indian
concern in pursuance of an agreement made by it with the Government or the Indian
concern and where such agreement is with an Indian concern, the agreement is
approved by the Central Government or where it relates to a matter included
in the industrial policy, for the time being in force, of the Government of
India, the agreement is in accordance with that policy—

 

a)
where the agreement is made after the 31st day of March, 1961 but before the 1st
day of April, 1976

 

b)where the agreement is made after the 31st day of March, 1976

 

 

 

 

 

 

 

 

 

 

 

        50%

 

 

        10%

8

 

Income by way of fees for
technical services payable by Government or an Indian concern in pursuance of
an agreement made by it with the Government or the Indian concern and where
such agreement is with an Indian concern, the agreement is approved by the
Central Government or where it relates to a matter included in the industrial
policy, for the time being in force, of the Government of India, the
agreement is in accordance with that policy—

 

a)where the agreement is made after the 29th day of February, 1964 but before the 1st day of April, 1976

 

b) where the agreement is made after the 31st day of March, 1976

 

c) Any other income

 

 

 

 

 

 

 

 

 

 

 

 

        50%

 

 

        10%

 

 

         4%

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