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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Qualification: CA in Practice
Company: Taxguru / Sandeep Kanoi & Associates
Location: Mumbai, Maharashtra, IN
Member Since: 27 Feb 2017 | Total Posts: 646
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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

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