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:
| Section | Description | Threshold Limit (in Rs. ) | Rate (%) | |||
| Existing | Amended | Existing | Amended | If No PAN | ||
| 192 | Salaries | – | – | Avg. Rates | Avg. Rates | 30 |
| 192A | Premature withdrawal from EPF | 30,000.00 | 50,000.00 | 10 | 10 | 30 |
| 193 | Interest on Securities | – | – | 10 | 10 | 20 |
| 194 | Dividends | 2,500.00 | 2,500.00 | 10 | 10 | 20 |
| 194A | Interest by Bank/Co-op Society/Post Office | 10,000.00 | 10,000.00 | 10 | 10 | 20 |
| Interest by others | 5,000.00 | 5,000.00 | 10 | 10 | 20 | |
| 194B | Winning from Lotteries | 10,000.00 | 10,000.00 | 30 | 30 | 30 |
| 194BB | Winning from Horse Race | 5,000.00 | 10,000.00 | 30 | 30 | 30 |
| 194C | Payment to Contractor/ Sub Contractor/ Advertisement/ Transporter** | 30000.00 / 75000.00 | 30000.00 / 100000.00 | 2* | 2* | 20 |
| 194D | Insurance Commission | 20,000.00 | 15,000.00 | 10 | 5 | 20 |
| 194DA | Payment in respect of Life insurance policy | 100,000.00 | 100,000.00 | 2 | 1 | 20 |
| 194E | Payment to Non Resident Sportsmen or Sports Association | – | – | 20 | 20 | 20 |
| 194EE | Payments out of Deposits under NSS | 2,500.00 | 2,500.00 | 20 | 10 | 20 |
| 194F | Repurchase units by MFs | – | – | 20 | 20 | 20 |
| 194G |
Commission- Lottery |
1,000.00 | 15,000.00 | 10 | 5 | 20 |
| 194H | Commission/ Brokerage | 5,000.00 | 15,000.00 | 10 | 5 | 20 |
| 194I | Rent- Land & Building, Furniture & Fixtures | 180,000.00 | 180,000.00 | 10 | 10 | 20 |
| 194I | Rent- Plant & Machinery | 180,000.00 | 180,000.00 | 2 | 2 | 20 |
| 194IA | Transfer of certain immovable property other than agriculture land | 5,000,000.00 | 5,000,000.00 | 1 | 1 | 20 |
| 194J | Professional Fees | 30,000.00 | 30,000.00 | 10 | 10 | 20 |
| 194LA | Compensation on acquisition of immovable property (other than agriculture land) | 200,000.00 | 250,000.00 | 10 | 10 | 20 |
| 194LB | Income by way of interest from infrastructure debt fund (Non- Resident) | – | – | 5 | 5 | 20 |
| 194LC | Income 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 | – | – | 5 | 5 | 20 |
| 194LD | Interest on certain bonds & Govt. securities | – | – | 5 | 5 | 20 |
- 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 | Description | Rate (%) |
| 206C | Scrap, alcoholic liquor for human consumption | 1 |
| 206C | Tendu leaves | 5 |
| 206C | Forest Products incl. Timber but Excl. tendu Leaves | 2.5 |
| 206C | Parking Lot, Toll Plaza, mining & quarrying | 2 |
| 206C | Minerals, being coal or lignite or iron ore | 1 |
| 206C | Jewellery (if amount exceeds Rs. 5Lacs)* | 1 |
| 206C | Bullion (if amount exceeds Rs. 2Lacs)* | 1 |
| 206C | Sale of Motor Vehicles exceeding Rs. 10 lacs. ** | 1 |
| 206C | Sale 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 | Description | Compliance |
| 194K | Income in respect of Units | To be omitted w.e.f. 01.06.2016 |
| 194L | Payment of compensation on Acquisition of Capital Asset | To be omitted w.e.f. 01.06.2016 |
| 194LBB | Units of investment Funds | TDS 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. | ||
| 194LBC | Income in respect of an investment in a securitization Trust | TDS 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 Quarter | Due Date For Filling Statement* |
| 1 | 30th june | 31st July of the Financial Year |
| 2 | 30th September | 31st October of the Financial Year |
| 3 | 31st December | 31st January of the Financial Year |
| 4 | 31st March | 31st 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)
Author Bio
sir
i m trader and recieving the service from transporter i m paying amount in cash 45000 per round. app my business with one teansporter rs 35 lac annaully. he has supply me his pan and declaration form. what is my tds and tcs liabilty.
Dear sir,
Please confirm the TDS rate on Insurance Commission for companies from 01.06.2016 5% or 10%.
i am a trader and selling goods to retailor for resale and consumer to personal use if any purchaser purchases goods from during the year of more than 2 lac. Rs. by variouse bills than what is the TCS liability
one more question as a professional May I take cash rupees below 2 lakh Rupees . Is there any liability or any implication .
If I paid any amount greater than TCS limit thru RTGS , Is there any TCS liability .
i have received compensation of land from delhi govt. rs 800000 and 1300000 interest on it ,last year. i am professional and bearing a loss of rs 400000 should i set off my loss from that compensation.