TDS Rates Chart for FY 2017-18 ( AY 2018-19)

Over the years there is definite increase in scope of TDS provisions. TDS provision has really become key instrument for Government to get compliance with requirement of Income Tax Law. Assesses has to claim TDS in their Return of Income by mentioning their related taxable income .

Government has made some changes in TDS Provision in  Finance Bill,2017 to bring parity in rates of TDS as one of objective.

 

TDS Rates Chart for FY 2017-18 ( AY 2018-19)

Sr.No. Sections Nature of payments Threshold limit in Rs. Rates %
1 192 Income from Salary Salary income exceed exemption limit of IT (Taxable Income) Monthly -Deduct income-tax on the amount payable at the average rate of income-tax  in force  on the estimated income of the assessee for that financial year
2 192A Payment of accumulated balance of provident fund 50,000 10% (In case of NO PAN, TDS at maximum marginal rate i.e. 30%
3 193 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 5,000 10%
4 193 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 there under 5,000 10%
5 193 any security of the State or Central Government 10,000 10%
6 193 Interest on any other security 10,000 10%
7 194 Dividend other than the dividend as referred to in Section 115-O of Income Tax Act,1961 2,500 10%
8 194A Interest other than Interest on securities payable by bank, Co-operative Society engaged in business of banking or post office 10,000 10%
9 194A Interest other than Interest on securities payable by Others 5,000 10%
10 194B Wining from Lottery /Crossword Puzzles , card games and other games of any sort 10,000 30%
11 194BB Wining from Horse Races 10,000 30%
12 194C Payments to contractors/Sub Contractors  for single transaction 30,000 1% in case of Individuals/HUF,
2% in case of others
13 194C Payments to contractors for aggregate transactions during FY 1,00,000 1% in case of Individuals/HUF,
2% in case of others
14 194D Insurance commission 15,000 5%
15 194DA Payment in respect
of Life Insurance
Policies
1,00,000 1%
16 194EE Payments out of deposits under NSS 2,500 10%
17 194F Repurchase of units by Mutual Fund/UTI 20%
18 194G Commission on sale of lottery tickets 15,000 5%
19 194H Commission or Brokerage 15,000 5%
20 194I Rent on machinery or plant or equipment  1,80,000 2%
21 194-I Rent on any land or building (including factory building) or land appurtenant to a building (including factory building) or furniture or fittings:  1,80,000 10%
22 194IA Payment to resident on transfer of Immovable property (other than agriculture land)  50,00,000 1%
23 194IB Payment of rent by individual or HUF not liable to tax audit 50,000 p.a. or part of Month(w.e.f. 01.06.2017) 5%
24 194IC Payment of monetary consideration as per Section 45(5A) 10%
25 194J Any sum paid for  i)Professional fees
ii) Technical fees,
iii) Royalty
iv)For not carrying out any activity in relation to any business
v)For not sharing any know-how, patent, copyright etc.
30,000 10% (2% w.e.f. 01.06.2017 in case  payee engaged  in the business of operation of call centre )
26 194J Any remuneration or commission paid to director of the company 10%
27 194LA Compensation on acquisition of immovable property 2,50,000 10% ( no deduction if payment cover U/S 96  of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 (30 of 2013)
28 194LBA(1) Business Trust to deduct TDS while distributing income  in case of receipt of interest from SPA or income  leasing or letting of any real asset owned directly to its unit holders being a resident 10%
29 194LBB Income in respect of units of investment fund other than exempted income U/S 10(23FBB) 10% in case of resident  and
at the rates in force, in case of non-resident or a foreign company:
30 194LBC Income in respect of investment made in a securitisation trust (specified in clause (d) of the Explanation occurring after section 115TCA) 25% in case of Individual/HUF,
30% in case of other person

Import Notes :

  1. Requirement to furnish Permanent Account Number as per Section 206AA: Payee has to furnish PAN to payer otherwise TDS will be deducted with higher of following rates:

    i) at the rate specified in the relevant provision of this Act; or

    (ii) at the rate or rates in force; or

    (iii) at the rate of twenty per cent.

2. Surcharge ,Education Cess and Secondary and Higher Education Cess will be added whenever it is applicable .

3. Above given TDS Rates Chart for FY 2017-18 will work as ready reference when you are clear regarding TDS section which will be applied in your case . IF you are not clear about TDS section , it is suggested to take professional advice or refer Income Tax Act and Rules. To put this matter in right perspective , e.g. in real life scenario you may face difficulty regarding applicability of Section 194-C payment to contractor or 194-J Sum paid for professional services in your case . You may have to evaluate whether particular service fall under list of professional or technical services therefore it is suggested to have better understanding of TDS provisions to avoid any default in deduction of Tax at Source .

 

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