Hunny Kuchhal

Hunny Kuchhal

Revised Compliance Regarding TDS w.e.f. 01.06.2016- Comprehensive & Comparative Analysis

Under the scheme of deduction of Tax at Source as provided in the Act, every person responsible for payment of any specified sum to any person is required to deduct tax at source at the prescribed rate and deposit it with the Central Government within the specified time. However, no deduction is required to be made if the payments do not exceed prescribed threshold limit.

The TDS rates Chart for the Financial Year 2016-17:

SectionDescription Threshold Limit (in Rs. ) Rate (%)
 Existing   Amended Existing AmendedIf No PAN
192Salaries – –Avg. RatesAvg. Rates30
192APremature withdrawal from EPF         30,000.00          50,000.00 101030
193Interest on Securities – –101020
194Dividends           2,500.00           2,500.00101020
194AInterest by Bank/Co-op Society/Post Office         10,000.00         10,000.00101020
Interest by others           5,000.00           5,000.00101020
194BWinning from Lotteries         10,000.00         10,000.00303030
194BBWinning from Horse Race           5,000.00          10,000.00 303030
194CPayment to Contractor/ Sub Contractor/ Advertisement/ Transporter** 30000.00 / 75000.00 30000.00 / 100000.002*2*20
194DInsurance Commission         20,000.00          15,000.00 10520
194DAPayment in respect of Life insurance policy       100,000.00       100,000.002120
194EPayment to Non Resident Sportsmen or Sports Association – –202020
194EEPayments out of Deposits under NSS           2,500.00           2,500.00201020
194FRepurchase units by MFs – –202020
194G 

Commission- Lottery

1,000.0015,000.0010520
194HCommission/ Brokerage           5,000.00          15,000.00 10520
194IRent- Land & Building, Furniture & Fixtures       180,000.00       180,000.00101020
194IRent- Plant & Machinery       180,000.00       180,000.002220
194IATransfer of certain immovable property other than agriculture land   5,000,000.00   5,000,000.001120
194JProfessional Fees30,000.0030,000.00101020
194LACompensation on acquisition of immovable property (other than agriculture land)       200,000.00        250,000.00 101020
194LBIncome by way of interest from infrastructure debt fund (Non- Resident) – –5520
194LCIncome by way of interest – by an indian specified company to a non-resident/ foreign co. on foreign currency approved loan/ long term infrastructure bonds from outside India – –5520
194LDInterest on certain bonds & Govt. securities – –5520
  • Rate 1% in case of Deductee is Individual or HUF.

**   If Transporter submits prescribed declaration, then no TDS shall be deducted.

The TCS rates Chart for the Financial Year 2016-17:

Section DescriptionRate (%)
206CScrap, alcoholic liquor for human consumption1
206CTendu leaves5
206CForest Products incl. Timber but Excl. tendu Leaves2.5
206CParking Lot, Toll Plaza, mining & quarrying2
206CMinerals, being coal or lignite or iron ore1
206CJewellery (if amount exceeds Rs. 5Lacs)*1
206CBullion (if amount exceeds Rs. 2Lacs)*1
206CSale of Motor Vehicles exceeding Rs. 10 lacs. **1
206CSale in goods/ Services in cash exceeding Rs. 2 Lacs (Other than Bullion & Jewellery) (other than paymets on which TDS is applicable)1
  • If total or part of the amount is received in cash.

**   Tax should be collected at the time of receipt of Consideration.

Some other Amendments in TDS Provisions:

Section DescriptionCompliance
194KIncome in respect of UnitsTo be omitted w.e.f. 01.06.2016
194LPayment of compensation on Acquisition of Capital AssetTo be omitted w.e.f. 01.06.2016
194LBBUnits of investment FundsTDS to be deducted:-
a) @ 10%, where the payee is a resident
b) where payee is a non- resident – no tax shall be deducted in respect of any income which is not chargeable to tax.
194LBCIncome in respect of an investment in a securitization TrustTDS to be deducted:-
a) @ 25% if the payee is an individual or HUF
b) 30% if the payee is any other person.

 Some other points worth consideration :-

1. Section 197 is amended to include Section 194LBB, 194LBC in the list of sections for which a certificate for deduction of tax at lower rate or no rate can be obtained w.e.f 01.06.2016.

2. The provisions of section 197A are amended for making the recipients of payments referred to in section 194-I (Rent) also eligible for filing self-declaration in Form 15G/15H for non- deduction of Tax At source in accordance with the provisions of section 197A w.e.f 01.06.2016.

3. Section 206AA is amended so as to provide that the said section shall not apply to a resident, not being a company, or to a foreign company, in respect of –

a) Payment of interest on Long Term Bond refered in section 194LC

b) Any other payment subject to conditions as may be prescribed on w.e.f. 01.06.2016.

Revised due dates for Filling of TDS Statement w.e.f. 01.06.2016:

S. No.Date of Ending of QuarterDue Date For Filling Statement*
130th june31st July of the Financial Year
230th September31st October of the Financial Year
331st December31st January of the Financial Year
431st March31st May of the Financial Year immediately following the FY in which the deduction is made

The due dates are now uniform for Government Deductors as well as Non- Government Deductors.

(The author can be reached at hunnykuchhal2015@gmail.com)

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