CA Sandeep Kanoi

CA Sandeep KanoiTDS Rates Chart for Financial Year 2017-18/ Assessment Year 2018-19 vide Finance Act 2017 i.e Budget 2017-18. We have updated the TDS rate chart considering the amendments made by Finance Act, 2017.

Tax Deducted at Source (TDS) Rate Chart/Slab for Financial Year (FY) 2017-18 / Assessment Year (AY) 2018-19

Section Nature of income When to deduct Rate of TDS
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)
192A Payment of accumulated balance due of Employees’ Provident Fund Scheme, 1952, to Employess 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 (See
note- 1 )*
Interest on securities*

a) 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;

b) 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 thereunder;

c) any security of the Central or State Government;

d) interest on any other security

At the time of credit or payment, whichever is
earlier, when the
amount exceeds Rs.
10,000/-In case of Debentures Threshold limit is Rs. 5000/-
10%

(20% if no Valid PAN)

194 Dividend other than the dividend as referred to in Section 115O Before making payment
to’ shareholder, other
than dividend declared
U/s. 115O, when
amount exceeds Rs.
2,500/-
10%

(20% if no Valid PAN)

194A
(See
note- 2 to 5)*
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 co‑operative banks to its members.
10%

(20% if no Valid PAN)

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

5000 (1-April-2016 to 31-May-2016)

10000 (On or after 1-Jun-2016)

HORSE RACE

5000 (1-April-2016 to 31-May-2016)

10000 (On or after 1-Jun-2016 )

30%

(30% if no Valid PAN)

194C (See
note- 6)*
Payment to
contractors/ sub-
contractors
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 Lakh wef 01.06.2016)
2% – For payments to
contractor/Sub-contractor
who is not an
Individual/HUF(20% if no Valid PAN)
1% – For payment to
contractor/Sub-contractor
who is an Individual/HUF(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 to 31-May-2016) or

Rs. 15000 (On or after 1-June-2016 )

10% from 01.04.2016 to 31.05.2016

5% wef 01.06.2016)

(20% if no Valid PAN)

(Please refer Note

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/- 2%

(1% wef 01.06.2016)

(20% 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% (on or after 1-Jun-2016)

(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 wef. 1st June-2016

10% from 01.04.2016 to 31.05.2016

5% wef 01.06.2016

(20% if no Valid PAN)

194H Payment of commission
brokerage
At the time of credit or payment whichever is earlier when the amount exceeds Rs. 5000/- (Rs. 15000 WEF 1-June-2016) 10% from 01.04.2016 to 31.05.2016

5% wef 01.06.2016

(20% if no Valid PAN)

194I (See note-7) 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
Machinery, Plant or
Equipment(20% if no Valid PAN)
194IA ((See note-8) 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)

194IB Rent payable by an individual or HUF not covered u/s. 194I (W.E.F. from 01.06.2017)

 

Tax shall be deducted on such income at the time of credit of rent, for the last month of the previous year or the last month of tenancy if the property is vacated during the year, as the case may be, to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier.
Threshold limit Rs. 50,000/- per month. TDS to be deducted @ 5%

Read-

194IC  Payment of Consideration (not being in kind) under Joint Development Agreement or other similar agreement
At the time of credit or payment, whichever is earlier.
Threshold limit Rs. Nil TDS to be deducted @ 10% (Applicable from 01.04.2017)

Read-  Budget 2017-Changes in capital gain computation- joint development agreement

194J Any sum paid by way of

a) Fee for professional services,

b) Fee for technical services

c) Royalty,

d) Remuneration/fee/commission to a director or

e) For not carrying out any activity in relation to any business

f) For not sharing any know-how, patent, copyright etc.

At the time of credit or payment, whichever is earlier, when the amount exceeds Rs. 30,000/- 10%

2% in case of payments received or credited to a payee, being a person engaged only in the business of operation of call center wef 01.06.2017.

(20% if no Valid PAN)

Read- S.194J TDS rate proposed at 2% on Call Center business Income

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
194LA Payment on transfer of certain immovable property other than agricultural land

(Read Note-8)

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)

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)

Sec 194LBC 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

194LBA 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)

194LBA 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)

194LBB (See note-10) Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)] shall deduct tax therefrom (with effect from 01.06.2015). At the time of credit or payment whichever is earlier 10% from 1-April-2016 to 31-May-2016

40% For Non Residents (1-Jun-2016 to 31-Mar-2017)

30 % For Non Residents (on or after 1-Jun-2016 )

(20% or Rate Applicable whichever is higher if no Valid PAN)

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 by way of issue of long-term bonds (including long-term infrastructure bond) At the time of credit or payment whichever is earlier 5%#

Concessional rate of five per cent TDS on interest
payment under this section will now be available in respect of borrowings made before the 1st July, 2020.

Read- Extension of period of concessional tax rate on interest on ECB

194LD (See note-9) Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor At the time of credit or payment whichever is earlier 5%#
195 Other Sums At the time of credit or payment whichever is earlier

 

Average rates as applicable

(See Note 17 & 18)

 

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)

# Surcharge, education cess and secondary and higher education cess will be added to the above tax rate, as applicable.

Notes:

1. Securities includes listed as well as unlisted debentures issued by companies in which public are substantially interested.

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

3. 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

4. As per amended definition of ‘time deposits’ under section 194(3) it now includes include recurring deposits also. This implies that now, interest on recurring deposits is also subject to TDS.

5. Bankwise Income to be considered for TDS deduction on time deposits instead of Branch- Section 194A- Amendment in provisions related to TDS on interest

6. a) 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

b) 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.

7. 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. (wef 01-04-2015) – Read More-Tax Regime for Real Estate Investment Trusts and Infrastructure Investment Trusts

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

It is proposed to amend the section 194LA to provide that no deduction shall be made under this section where such payment is made in respect of any award or agreement which has been exempted from levy of income-tax under section 96 (except those made under section 46) of RFCTLARR Act. This amendment will take effect from 1st April, 2017. No tax deduction on compensation under RFCTLAAR Act, 2013

9. Concessional rate of 5% withholding tax on interest payment under section 194LD will now be available on interest payable  before the 1st July, 2020.- Extension of eligible period of concessional tax rate U/s. 194LD

10. 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

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

12. If the payment is made to a person (including non resident) whose receipts are subject to TDS shall mandatory furnish his PAN to the deductor (even though the deductee file a declaration in form no. 15G or 15H) otherwise the deductor shall deduct the TDS at higher of the following rates-

– The applicable rate prescribed in the Act or

– The rate mentioned in the Finance Act or

– 20%

13. Surcharge on TDS on payments made to non-resident person and company other than a domestic company

a) Surcharge Rate (%)

Non Residents other than company (if income exceeds Rs. 50 Lakh but not exceeds Rs. 1 Crore) 10%
Non Residents other than company (if income exceeds Rs. 1 Crore) 15%
Non Resident companies if income is between Rs. 1 Crore and 10 Crore 2%
Non Resident companies if income is greater than Rs. 10 Crore 5%
Surcharge on Coperative Society & Firms in case of Non-Residents (if income exceeds Rs. 1 crore) 12%

b) Surcharge on tax is not deductible/collectible at source in case of resident individual/ HUF /Firm/LLP/ AOP / BOI/Domestic Company in respect of payment of income other than salary.

14. Education Cess on payments made to non-resident person and company other than a domestic company

a) Non Resident & Foreign Companies– “Education Cess on income-tax” and “Secondary and Higher Education Cess on income-tax” shall continue to be levied at the rate of two per cent. and one per cent. respectively, of income tax including surcharge wherever applicable.

b) Other Resident Assessees- Education Cess is not deductible/collectible at source in case of resident Individual/HUF/Firm/ AOP/ BOI/ Domestic Company in respect of payment of income other than salary.Education Cess @ 2% plus secondary & Higher Education Cess @ 1% is deductible at source in case of non-residents and foreign company.

15. NO TDS on service tax component comprised in the payments made to residentsCircular No. 1/2014 , Dated 13-1-2014

16. Amendment in TDS Rates & Threshold limit wef 01.06.2016

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

Section 195: Payment of any other sum to a Non-resident TDS Rate
a) Income in respect of investment made by a Non-resident Indian Citizen 20
b) Income by way of long-term capital gains referred to in Section 115E in case of a Non-resident Indian Citizen 10
c) 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
d) Income by way of short-term capital gains referred to in Section 111A 15
e) 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
f) 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) 5
g) 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
h) 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
i) 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
j) Any other income 30

18. Deduction under Section 195 of Income Tax Act, 1961, where the company is not a domestic company-

Section 195: Payment of any other sum TDS Rate
a) 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
b) Income by way of short-term capital gains referred to in Section 111A 15
c) 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
d) 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
e) 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 10
f) 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 50
B. where the agreement is made after the 31st day of March, 1976 10
g) 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 50
B. where the agreement is made after the 31st day of March, 1976 10
h) Any other income 4

19. In order to reduce compliance burden in the case of Individuals and HUFs, it is proposed to amend section 197A so as to make them eligible for filing self-declaration in Form.No.15G/15H for non-deduction of tax at source in respect insurance commission referred to in section 194D. This amendment will take effect from 1st June, 2017. Read- Budget 2017: No TDS deduction on Insurance Commission on Filing of Form 15G/15H  

20. 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 subject to provisions of section 194IB.

21. 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

22. 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.

23. Deduction at lower or nil rate requires certificate u/s.197,which will take effect from the day it is issued. It cannot 24. 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

25. Failure to file quarterly TDS Returns in time- late fee @ Rs. 200/- per day (maximum of TDS amount) Section 234E.

26. Due dates for deposit of TDS are as under

Deductions made in the month of March On or before  30th 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

27. Due dates for TDS quarterly Returns

Due dates for TDS quarterly Returns
Quarter Period Due Date
Q1 1 Apr – 30 June 31st July
Q2 1 July – 30 Sept 31st Oct
Q3 1 Oct – 31 Dec 31st Jan
Q4 1 Jan – 31 Mar 31st May

(Disclaimer- We have taken all the effort to make the information 100% accurate but readers are requested to verify at their end with Relevant Acts and Rules before replying on above. In case of any discrepancy the same can be informed to us through comment at the end of article or by sending an email at info @taxguru.in )

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15 responses to “TDS Rates Chart for FY 2017-18 / AY 2018-19”

  1. AVINASH says:

    Thanks a lot
    Really helpful

  2. CA B L Choraria says:

    Thanks. Great work

  3. kanoj says:

    grat information ,thanks alot

  4. umeshkumarverma says:

    Dear Sir, if any one’s Total monthly salary is Rs 30065 per month and no other benefits.
    How much TDS should be deduct per month from 01.04.2017 to 31.03.2018
    He has to pay tution fees, LIC premium, House Rent. Also these deductions should be deducted from
    total salary when we are paying.

    Thanks

  5. madhusudan jena says:

    sir how can i file tds return iam a new user plz tell me sir

  6. Amit says:

    Limit of 30 k is for full year.

  7. SUSHIL Kumar Pathak says:

    We purchased street light bulb through quotation the supplier given invoice in that tds deductible or not

  8. manoj says:

    87A allowable has been changed ,just check the website

  9. manoj says:

    Thanks for information

  10. DEEPAK DANG says:

    Very informative. Can you upload a chart comparing changes of last 10-15 years for our information that where the successive govts. are lagging behind. Who are the best gainers?

  11. bhupendra lalbhai prajapati says:

    Dedcution u/s.192A has not been completely narrated in above article so it is misleading. TDS u/s. 192 A is deductible only if employee fall out side an ambit of rule 8 of Part A of Fourth Schedule .i.e. if employee has not completed 5 year of service or employment has been terminated on account of ill health of employee or discontinuation of business by the employer or employee has obtained another employment but has not transferred the PF balance with new employer

  12. JAINAM SHETH says:

    Hello Sir,

    Firstly thanks for making this Information available for us.

    I have one doubt on TDS taxability in Section 194J.

    For example, If A company pays Professional Fees of Rs.25000 for twice (For Two Invoices) to a Consultant, Whether the company is required to deduct the TDS because the amount is not exceeding Rs.30000 per Invoice.

    Another doubt is that – Whether Limit of Rs.30000 is for Single Invoice / Credit / Payment or Aggregate amount of whole year?

  13. GHANSHYAM THAKUR says:

    R/Sir, My gross income is Rs.5,95,450/- only & after allowable deductions Taxable Income Rs. 4,38,970/- only. IT Rebate amounting to Rs. 5,000/- only under 87 A is allowable to me or not.

  14. pravin sheth says:

    thanks- very informative અંદ helpful

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