TDS Rates Chart for FY 2016-17

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 . Now a days it is very difficult to recall rates of TDS due to various sections with different threshold limit and TDS rates . This TDS rates chart will work as ready reference in your day to day work .

Government has made various  changes in TDS threshold limit and rates in Finance Bill,2016 to bring parity in rates of TDS as one of objective.

TDS Rates Chart for FY 2016-17 ( AY 2017-18)

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 w.e.f. 01.06.2016(30.000 up to 31.05.2016) 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 from 01.06.2016 (5,000 up to 31.05.2016) 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 w.e.f. 01.06.2016 (75,000 up to 31.05.2016) 1% in case of Individuals/HUF,
2% in case of others
14 194D Insurance commission 15,000 w.e.f. 01.06.2016(20.000 up to 31.05.2016) 5% w.e.f. 01.06.2016
(10% up to 31.05.2016
15 194DA Payment in respect
of Life Insurance
Policies
1,00,000 1% w.e.f. 01.06.2016
(2% up to 31.05.2016
16 194EE Payments out of deposits under NSS 2,500 10% w.e.f. 01.06.2016
(20% up to 31.05.2016
17 194F Repurchase of units by Mutual Fund/UTI 20%
18 194G Commission on sale of lottery tickets 15,000 w.e.f. 01.06.2016 (1,000 up to 31.05.2016) 5% w.e.f. 01.06.2016
(10% up to 31.05.2016
19 194H Commission or Brokerage 15,000 w.e.f. 01.06.2016 (5,000 up to 31.05.2016) 5% w.e.f. 01.06.2016
(10% up to 31.05.2016
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 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%
24 194J Any remuneration or commission paid to director of the company 10%
25 194LA Compensation on acquisition of immovable property 2,50,000 w.e.f. 01.06.2016( 2,00,000 up to 31.05.2016) 10%
26 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%
27 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:
28 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 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 .

 

Disclaimer: Every effort has been made to provide quality contents to avoid any errors and omissions however it is suggested for removal of any doubts user should take professional advice or should confirm with relevant Government laws, acts,rules and notifications. FinanceFriend.in or its authors or publisher are not responsible for any loss or liability incurred by using this information.

Author

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  • CA. Kalpesh Karia

    CA. Kalpesh Karia is a Fellow Chartered Accountant . He founded and developed this blog ' FinanceFriend.in ' in 2012. He regularly posts articles related to finance and taxation on his blog. As the name suggests, he is trying to be a Finance Friend and wants to give back to society what he has learned over the years. He shares knowledge based on his 18 years of experiences in areas like Finance, Accounts, Taxation, Forex & Treasury , Wealth Management & Financial Planning, Costing, SAP and Digital Transformation .

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