TDS RATE CHART FINANCIAL YEAR 2016-17 (ASSESSMENT YEAR 17-18)

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 2016 -2017 Assessment Year 2017-18

Nature of Payment
Basic Cutoff (Rs.)
Individuals and HUF
Company / Firm / LLP / Cop Society / Local Authority
If No Pan or Invalid PAN

192 – Salaries
Slab Rate
Slab Rates
Slab Rates
30

192A-Premature withdrawal from Employee Provident Fund ( New Limit wef 01 June 2016)
50000 (New)
NA
10
20

30000(old)

193 – Interest on securities
–
10
10
20

194 – Dividend other than the dividend as referred to in Section 115-O
2500
10
10
20

194A – Interest other than interest on securities – Others
5000
10
10
20

194A – Banks(Time deposits)
10000
10
10
20

194A – Banks (Recurring deposit)
10000
10
10
20

194A – Deposit in Co-op Banks
10000
10
10
20

194B – Winning from Lotteries
10000
30
30
30

194BB – Winnings from Horse Race ( New Limit wef 01 June 2016)
10000(New)
30
30
30

5000 (old)

194C- Payment to Contractor – Single Transaction
30000
1
2
20

194C-Payment to Contractor – Aggregate During the Financial year ( New Limit wef 01 June 2016)
100000(New)
1
2
20

75000 (old)

194C- Contract – Transporter not covered under 44AE (wef 01 June 2015)
30000 / 75000
1
2
20

194C- Contract – Transporter covered under 44AE & submit declaration on prescribed form with PAN (wef 01 June 2015)
–
–
–
20

194D – Insurance Commission
20000
10
10
20

194DA Payment in respect of life insurance policy (New Percentage w.e.f. 01 June 2016)
100000
1 (New)
1 (New)
20

2 (old)
2 (old)

194E – Payment to Non-Resident Sportsmen or Sports Association
–
20
20
20

194EE – Payments out of deposits under NSS (New Percentage w.e.f. 01 June 2016)
2500
10 (New)
10 (New)
20

20 (Old)
20(Old)

194F – Repurchase Units by MFs
–
20
20
20

194G – Commission – Lottery (New Percentage and Limit w.e.f. 01 June 2016)
15000 (New)
5 (New)
5 (New)
20

5000 (old)
10 (old)
10 (old)

194H – Commission / Brokerage (New Percentage and Limit w.e.f. 01 June 2016)
5000
5 (New)
5 (New)
20

10 (old)
10 (old)

194I – Rent – Land and Building – furniture – fittings
180000
10
10
20

194I – Rent – Plant / Machinery / equipment
180000
2
2
20

194IA -Transfer of certain immovable property other than agriculture land
5000000
1
1
20

194J – Professional Fees
30000
10
10
20

194LA – Immovable Property (New Percentage and Limit w.e.f. 01 June 2016)
250000(New)
10
10
20

200000 (old)

194LB – Income by way of interest from infrastructure debt fund (non-resident)
–
5
5
20

194LBB – Income in respect of investment in Securitisation trust. (New Section)
–
25
30
20

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 India
–
5
5
20

194LD – Interest on certain bonds and govt. Securities
–
5
5
20

196B – Income from units
–
10
10
20

196C-Income from foreign currency bonds or GDR (including long-term capital gains on transfer of such bonds) (not being dividend)
–
10
10
20

196D – Income of FIIs from securities
–
20
20
20

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 Goods
Rates in %

1.
Alcoholic liquor for human Consumption

2.
Tendu leaves

3.
Timber obtained under forest lease

2.5

4.
Timber obtained by any mode other than a forest lease

2.5

5.
Any other forest produce not being timber or tendu leaves

2.5

6.
Scrap

7.
Parking lot

8.
Toll plaza

9.
Mining & Quarrying

10
Minerals, being coal or lignite or iron ore

11
Bullion or jewellery (if the sale consideration is paid in cash exceeding INR 2 lakhs)

12
Motor 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 March
On or before 30 th April

Deductions made other than month of March and tax on perquisites opted to be deposited by employer
On or before seven days from the close of the month

Due dates for TDS quarterly Returns

Quarter
Period
Due Date

Q1
1 Apr – 30 June
15th July

Q2
1 July – 30 Sept
15th Oct

Q3
1 Oct – 31 Dec
15th Jan

Q4
1 Jan – 31 Mar
15th May

Notes and Important points to be kept in Mind

TDS is not applicable on service tax part if service tax is shown separately
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)
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. (Budget 2016 Proposal)
It is also proposed to provide that 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. (Budget 2016 Proposal)
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
It is proposed to amend 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. (Budget 2016 Proposal)
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.
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
Failure to file quarterly TDS Returns in time- late fee @ Rs. 200/- per day (maximum of TDS amount) Section 234E