CA Sandeep Kanoi

CA Sandeep KanoiTDS/TCS Rates Chart for Financial Year 2015-16 / Assessment Year 2016-17 vide Finance Act 2015 i.e Budget 2015-16-  We have updated the TDS rate chart considering the amendments made by Finance Act, 2015. Some of these amendments takes effect from 01.04.2015 and other have  taken effect from 01.06.2015.

The term ‘TDS’ refers to ‘Tax Deduction at source’. It is a mechanism wherein a person responsible to pay a sum of specified nature shall deduct an amount towards TDS and pay it to the credit of Central Government. Various TDS rates on various incomes have been prescribed under the Income-tax Act. This write up covers all such rates.

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.
192A

Payment of accumulated balance
due of Employees’ Provident Fund Scheme, 1952, to Employess

(w.e.f 01-06-15)

when the amount of
payment or aggregate amount of payment exceeds Rs. 30,000/-

10%
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.
5,000/-
10%
194 Dividends Before making payment
to’ shareholder, other
than dividend declared
U/s. 115-0, when
amount exceeds Rs.
2,500/-
20%
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%
194B /194BB Winnings from lottery, cross word puzzles card games, horse race, games of any sort including T.V. Game Shows At the time of  payment when it exceeds Rs. 5,000/- in other games and Rs. 2,500/- in the case of horse race. 30%
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/-

2% – For payments to
contractor/Sub-contractor
who is not an
Individual/HUF
1% – For payment to
contractor/Sub-contractor
who is an Individual/HUF
194D Insurance Commission

At the time of credit or payment, whichever is earlier when the amount exceeds Rs. 20,000/-

10%
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%
194H Payment of commission
brokerage

At the time of credit or payment whichever is earlier when the amount exceeds Rs. 5000/-

10%
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

2% – If the rent is for
Machinery, Plant or
Equipment

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%
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%
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%#
194LBA

Payment of distributed income to resident unit holder by a business
trust and Payment of distributed income to non resident unit holder by a business trust

At the time of credit or payment whichever is earlier

10%5%#
194LBB (See note-10)

Payment of distributed income to unit holder in respect of units of an
investment fund (w.e.f 01-06-15)

At the time of credit or payment whichever is earlier

10%
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%#
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%#
206C

Collection on Sale of bullion and Jewellery

At time of sale, if sale
consideration is received in cash in excess of Rs. 2 Lacs

.

1%

# 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.

9. Concessional rate of 5% withholding tax on interest payment under  section 194LD  will now be available on interest payable upto 30th June, 2017. – 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) non-resident person (other than a company)– The amount of tax so deducted shall be increased by a surcharge at the rate of twelve per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees .

b) company other than a domestic company– The amount of tax so deducted shall be increased by a surcharge,-

  • at the rate of two per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees but does not exceed ten crore rupees;
  • at the rate of five per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds ten crore rupees.

c)  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

TCS Rates for F. Y. 2008-09 to 2015-16

Section Nature of Payment Cut-off Amount TCS Rates (%)
F. Y. 2008-09 to 2011-12 F. Y. 2012-13 to 2015-16
Individual / HUF Other Individual / HUF Other
206C Scrap 1 1 1 1
206C Tendu Leaves 5 5 5 5
206C Timber obtained under a forest lease or other mode 2.5 2.5 2.5 2.5
206C Any other forest produce not being a timber or tendu leave 2.5 2.5 2.5 2.5
206C Alcoholic Liquor for human consumption 1 1 1 1
206C Parking Lot, toll plaza, mining and quarrying 2 2 2 2
206C Minerals, being coal or lignite or iron ore (applicable from July 1, 2012) 1 1
206C Bullion if consideration (excluding any coin / article weighting 10 grams or less) exceeds Rs. 2 Lakhs or jewellery if consideration exceeds Rs. 5 Lakhs (and any amount is received in cash) (applicable from July 1, 2012) 1 1

(Republished with Amendments)

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61 responses to “TDS/TCS Rates Chart for FY 2015-16 / AY 2016-17”

  1. Prashant Raut says:

    This is to inform you that from 01/04/2016 your total labour charges amount Rs.56,620/- & now coming invoices total amount Rs.46,740/-. As per the TDS u/s 194C total bill amount above 1Lakh so that we must deduct your TDS.

    What does it means ??

    How much amount do i get ???

  2. pawanmishra1266 says:

    If We are having a bill of more than 2 Lac Suppose 2.25 Lac and on which 26000 will be given as discount. Should it be required to charge the TCS on actual amount or not

  3. tejas says:

    dear sir
    we are paid rent monthly 20000 for 2 different properties but owner is one
    so i have to paid tds?

  4. amleshjha says:

    Rent amt does not exceed Rs, 180,000, but you will not deducted tds

  5. amleshjha says:

    Rent amt does not exceed Rs, 180,000, but you will not deducted tds,

  6. amleshjha says:

    Rent amt is 36000, , but service tax is not includge , than you deduct tds @10% Exp( 36000-10%)3600=36000-3600=32400, you will be pay & tds not to be deducted of service tax

  7. Amlesh jha says:

    Rent amt is 36000, , but service tax is not includge , than you deduct tds @10% Exp( 36000-10%)3600=36000-3600=32400, you will be pay & tds not to be deducted of service tax,

  8. Rajesh Khare says:

    Sir / Madam i am paying monthly rent 36000/- i should pay TDS Please Explain me

    • ARUN PATHANIA says:

      Yes u have to deduct TDS and pay it. As your Total Amount 36000*12= 432000/- which above the exempted limit of 1,80,000/- .

      So u have to pay 10 % of 36000/- i.e 3600 each month

  9. Rajesh kumar says:

    sir/mam please tell me the actual rate % of tds to firm for f.Y 2016-17. is it 2% or 1 % like hr consultancy

  10. syed says:

    yes we have to deduct tds for them

  11. Aravind Darpan says:

    If I am paying monthly rent of Rs.15000 should I go for TDS as the annual rent payment does not exceed Rs.180,000. Please suggest and help me

  12. S. Manohar says:

    Our Tax Consultant confirms that the TDS for contractors is 2 %, for all, weather individuals or Firms, from December 2015 onwards.Please reply.

    Manohar

  13. deepak yadav says:

    tds

  14. Hari hara sundaram kk says:

    Sir,

    I wish to know whether payment to regular printing vendor , TDS to be deducted

  15. dinesh patidar says:

    how calculate interest on let payment of TDS u/s 194c (job work) and which rate for financial year 2015-16.

  16. BALASUBRAMANIAN SWAMINATHAN says:

    what is the self declaration rent limit per month for AY 2015_16?

  17. PROSENJIT GHOSH says:

    I HAVE DEPOSITED RS.110000.00 IN A BANK AS,ONE YEAR DEPOSIT TERM.PLZ TELL ME THAT BANK IN LIABLE TO DEDUCT TDS….

  18. Dharmendra says:

    its good

  19. Eknath Dharmadhikari says:

    Sir,
    I have agriculture land in the rural area worth Rs.1.3 cr & I am selling that land. Please guide me about the Tax on sale of such land & specify the criteria when tax will arise.
    Thank you.

  20. TAVS says:

    IS THERE ANY SWACH BHARAT CESS ALONG WITH EDN CESS AND HR EDN CESS ON INCOME TAX?

  21. PRADEEP KUMAR says:

    I make a marine policy from Future Generali Insurance co..
    What TDS amount / rate to be deduct from policy amount

  22. PRADEEP KUMAR says:

    I make a marine policy from Future Generali Insurance. What Tds amount / rate to be deduct from policy amount.

  23. shriniwas says:

    please provide list of slabs

  24. tpidaman says:

    i need to know what is the threshold limt on contractors who supply workers, section and percent

    • kARTHIKEYA says:

      Under sec194C if the payment made in a single transaction it must not exceed 30,000rs & 75,000rs in case aggregate during the financial year.

  25. Kunal Kumar says:

    I have a compuyer firm. I was supply compuyer and its parts in school. All billing amounts want to deduct TDS amount 2%.Jabki mai sale tax paid karta hoon. Mai yeh janana chahta hoon ki wo mere supply pe tax katne ka adhikar hai ki nahi. Agar hai to kis rule ke tahat. Pl guide me.

    • syed suhel says:

      NO TDS should be deducted on bills of computer supply since it is sales/purchase transaction and VAT ( sales tax) is mentioned on the bill.

      TDS will be applicable if the bills pertain to repairs/service charges along with the applicability of limit of Rs 30000/-( one bill) and Rs 75000/- ( total in 1 year)

    • anish sharma says:

      yes your tds should be deduct u/s 94I rent on plant and machinery. it will calculate 2 % on your gross total sale.

  26. bharadwaja says:

    sir if a person has both salary income and business income how tds on salary is deducted,i.e,either as a % of total tax payable/salary income or tax on salary income/salary income

  27. ajay kumar jha says:

    tds rate charte fy2015-16

  28. Chanchal Pathak says:

    Dear Mr Jayant Patil,

    As per 194C, you do not able to deduct TDS from the same bill because this amount not exceeds Rs 30000/- at a single bill. we dont deducted the tax on tax amount.

  29. AFROZ says:

    I AM A INSTRUCTOR IN GOVT. ITI COLLEGE ON CONTRACT BASIS WITH 18000/- PM SALARY.I AM IN LABOUR RESOURCES DEPARTMENT IN BIHAR. BUT THE DEPARTMENT/DDO IS DEDUCTING TDS IN IT @ 10%. Are they correct?

  30. PRAKASH says:

    sir,
    Please provide the slab & calculation of Tds on F A 2015-16

  31. RAJA says:

    Can u please provide details of Saral TDS filing
    Is there any website with video showing TDS filing concepts

  32. Dushyanth kumar N says:

    Respected sir,
    i am technical person working in govt office on open source contract basis. the salary will be paid to me from the contract holder and he will get the amount (net salary+service charge +service tax) from the govt office .So that what is the TDS Rate to be deducted .

  33. Amar Padhya says:

    Hi Jayant Patil if service tax amount is disclosed separately in invoice than there is no need to deduct TDS but if it is not shown separately TDS has to be deducted.

  34. ROHIT PANDYA says:

    amne tds nu rate list avu apo k je amne samjava ma saral pade ane read karva ma maja ave

  35. Jayant Patil says:

    In Case we have received contract bill of Rs,32,832/- which is Net Contract amount Rs.28800+ST 14% Rs.4032/-
    So,
    TDs should be deducted on Rs.28832 Or not (single payment above 30000/- as per 194C) ????

    Please clarify the same.

  36. Jayant Patil says:

    In Case we have received contract bill of Rs,32,832/- which is Net Contract amount Rs.28800+ST 14% Rs.4032/-
    So,
    TDs should be deducted on Rs.32832 Or not (single payment above 30000/- as per 194C) ????

    Please clarify the same.

  37. Pyari Mohan Muduli says:

    Is the payment of EPF is taxable ! What is the rate ! If the amount is more than Rs. 30,000/-

  38. KIRAN VASANTRAO BANGAR says:

    We have payment to Showroom Rent May-2015 payment to this June 2015 of Re.16500/- per month(MAHARASHTRA) SO Please GUIDLINE OF TDS RATE OF SHOWROOM RENT(MAHARASHTRA)

    • kARTHIKEYA says:

      Since amount of payment exceeds the exemption(1,80,000) limit so you need to cut Tds@10% while paying to owner and same has to be deposited.

  39. DEDEEPYA REDDY says:

    As per Section 192 of the IT Act, any person responsible for paying any amount under the head salaries is required to deduct tax at source at the time of payment. This section unlike some other provisions, does not distinguish between payment of salary, to a resident, non resident or expatriate. expatriates.

  40. Shailesh Choudhary says:

    Sir,
    I am buying a Residential property from a NRI worth rupees say 1cr and he is holding the passport of Australia and OCI.

    For past 1 year he is residing in India and He is having a PAN CARD also but does not fill ITR as he is not earning in INDIA.

    As per income tax rule whether he is a resident or NRI ?

    Please confirm at what rate I shall deduct TDS for my deal(i.e TDS on property sell) .

  41. BHARAT V says:

    Please list out who has to deduct TDS for AY2016-17 IF proprietary concern having T.O. less than 1 cr have to deduct tax from Transport and commission and have to take TDS number.

  42. Adwin Anil Saldanha says:

    Dear Sir,
    This is with regard to maturity proceeds from Setubandhan, traditional policy by SBI Life Insurance Company. I had invested Rs. 3 Lac on 26th May 2015. It got matured on 26th May 2015. I had funded this investment from my NRE account. I am residing in Kuwait. Total amount at maturity turns out to be 4.5 lacs. Now they are saying that in case i fail to provide them with Tax Residency certificate from kuwait, they will deduct 30.9% of 4.5 lacs. I am surprised to hear that. If i do not present TRC they can take 30.9% of 1.5 lacs which they are giving and not on my money. They are reluctant to understand the concept. How can I stop them by doing this. Can i get some circular related to this and please help me get out of this trouble. please, thank you

  43. S V S MOUNICA says:

    will TDS be deducted on telephone bills paid? As per Finance Act 2012, it says TDS should be deducted on telephone bills then what about TDS on telephone bills. kindly clarify please.

  44. Yogesh says:

    Plz share sometime about TDS returns filing.

  45. Sathish says:

    The amount exempted from deduction of TDS in case of rent under Section 194I is Rs.1,80,000/=. If rent is paid separately to 2 or 3 joint owners f the property, is the exempt amount applicable per person or together ?

  46. jayanth says:

    In case of TDS on transpot, deduction is allowed only in cases when more than 10 vehicles are owned.

  47. Deepak Kumar says:

    Sir,
    Can your please clear my concept about the Work Contract Accounting and Sales Tax Return.

    Regards
    Deepak

  48. SALIL Das says:

    Please provide me the T.D.S.Return form 26Q

  49. k subramanian says:

    In a company a “going concern” if salary is not paid for three or four months and if these salaries remain unpaid even before end March ’15 can we exclude these unpaid salaries from Income Tax workings of the employees for arriving at taxable income for the financial year ending 31.03.15? Whether TDS need to be paid for these unpaid salaries?Please clarify.

  50. JOBINS N J says:

    What would be the rate of TDS if the salary paid to non residents

  51. CA Seshadri says:

    In case of TDS on transport it will be better to state non deduction is allowed only for cases where NOT MORE than 10 vehicles are owned .for better clarity

  52. Gurdeep Arora says:

    Please provide list of requirements to be checked by auditors when listed companies purchase shares & make a subsidiary co

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