TDS - Tax Deducted at Source
Introduction:
TDS (Tax Deducted at Source) was
introduced with an intention to collect Tax from the various sources of income,
which controlled by CBDT (Central Board of Direct taxes) it comes under the
Indian Revenue Services (IRS). As per this concept TDS is to be deducted on
specified payment as prescribed by Income Tax Act by persons who are liable to
deduct TDS. So it is the duty of the deductor to deduct TDS as given in Income
Tax Act. Each payment has its own rate of percentage to deduct TDS and remit
the same into the account of the Central Government through
Challan/electronically. Any type of payment covered under these provisions
shall be paid after deducting set percentage. The deductee from whose income
tax has been deducted at source would be entitled to get credit of the amount
so deducted on the basis of Form 26AS or TDS certificate issued by the
deductor.
Page Contents
1.
Why TDS is Deducted
2.
Rate Chart of Tax Deducted at Source F.Y. 2015-16 & A.Y. 2016-2017
3.
Rate Chart of Tax Deducted at Source F.Y. 2016-17 & A.Y. 2017-2018
4.
Income Tax Slab F.Y. 2015-16 & A.Y. 2016-2017 (Salary)
5.
Income Tax Slab F.Y. 2016-17 & A.Y. 2017-2018 (Salary)
6.
Advantages of Tax Deducted at Source
Why TDS is Deducted
TDS is to be deducted based on two
conditions, (a) while booking expenditure or (b) actual payment in cash or
cheque to the payee’s account, whichever happens earlier.
TDS is to be deducted on salaries,
Honorarium to Experts, rent on premises & others, interest on SB/FD
accounts, payment of commission, payments on consultancy fees, payments to
lawyers or freelancers for professional charges.
Employee/Deductee should submit PAN
to the employer/deducter to avoid higher deduction @ 20% if they do not have
your PAN information.
NO income tax/TDS would be deducted
from your income if you submit investment/savings proofs for claiming
deductions to your employer and your total taxable income is below the taxable
limit.
You can also submit a declaration by
Form 15-G (for others ) or Form 15-H (for Senior Citizens) to your bank if your
gross total income is below the taxable limit, based on your declaration they
won’t deduct TDS on your interest income.
If it is found that your
employer/bank have already deducted and deposited Tax on your income due to
lack of information and your gross total income is below the taxable limit then
you can file a Return in the prescribed ITR Form and claim a refund of this TDS
from Income Tax authority thereafter.
Rate Chart of Tax
Deducted at Source F.Y. 2015-16 & A.Y. 2016-2017
|
Section
|
Particulars
|
TDS
Rate
|
Criteria
for Deduction /Threshold Limit
|
|||
|
Individual/HUF
|
Company
/ Firm/ Others
|
No
PAN
|
||||
|
192
|
Salary
|
As
per Slab rates
|
||||
|
192B
|
Withdrawal
from EPF(Employees Provident Fund Organization)-Premature
|
10%
|
NA
|
20%
|
Rs.
30000/-
|
|
|
193
|
Interest
on Securities
i) 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;
ii) any debentures issued by a
company where such debentures are listed on a recognized stock exchange in
accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956)
and any rules made thereunder;
iii) any security of the Central
or State Government;
iv) interest on any other security
|
10%
|
10%
|
20%
|
N.A
|
|
|
194A
|
Interest
on SB/TD/RD Accounts
|
10%
|
10%
|
20%
|
Payment
in excess of Rs. 10000/-
|
|
|
194A
|
Interest
other than interest on securities
|
10%
|
10%
|
20%
|
Payment
in excess of Rs. 5000/-
|
|
|
194B
|
Winning
from Lotteries
|
30%
|
30%
|
30%
|
Payment
in excess of Rs. 10000/-
|
|
|
194BB
|
Winning
from Horse Race, Cross word puzzle
|
30%
|
30%
|
30%
|
Payment
in excess Rs. 5000/-
|
|
|
194C
|
Contractor
(No
TDS for Transport Contractors if quoting PAN and engaged in the business for
plying, hiring or leasing of goods carriages)
|
1%
|
2%
|
20%
|
Payment in excess of Rs. 30000/-
in a single bill and Rs. 75000/- P.A.
|
|
|
194D
|
Insurance
Commission
|
10%
|
10%
|
20%
|
Payment in excess Rs. 20000/-
|
|
|
194DA
|
Payment
inrespect of LIC Policy
|
2%
|
2%
|
20%
|
Payment in excess Rs. 100000/-
|
|
|
194H
|
Commission or Brokerage
|
10%
|
10%
|
20%
|
Payment in excess Rs. 5000/-
|
|
|
194I
|
Rent of Land & Building,
Furniture & Fittings
|
10%
|
10%
|
20%
|
Payment in excess Rs. 180000/-
|
|
|
194I
|
Rent of Plant & Machinery
and Other Equipments
|
1%
|
2%
|
20%
|
Payment in excess Rs. 180000/-
|
|
|
194IA
|
Transfer of Certain Immovable property
other than Agriculture Land
|
1%
|
1%
|
20%
|
Payment in excess Rs. 5000000/-
|
|
|
194J
|
Professional Services and
Technical Services & Royalty
|
10%
|
10%
|
20%
|
Payment in excess Rs. 30000/-
|
|
Rate Chart of Tax
Deducted at Source F.Y. 2015-16 & A.Y. 2016-2017
|
Section
|
Particulars
|
TDS
Rate
|
Criteria
for Deduction /Threshold Limit
|
|||
|
Individual/HUF
|
Company
/ Firm/ Others
|
No
PAN
|
||||
|
192
|
Salary
|
As
per Slab rates
|
||||
|
192B
|
Withdrawal
from EPF(Employees Provident Fund Organization)-Premature
|
10%
|
NA
|
20%
|
Rs.
50000/-
|
|
|
193
|
Interest
on Securities
i) 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;
ii) any debentures issued by a
company where such debentures are listed on a recognized stock exchange in
accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956)
and any rules made thereunder;
iii) any security of the Central
or State Government;
iv) interest on any other security
|
10%
|
10%
|
20%
|
N.A
|
|
|
194A
|
Interest
on SB/TD/RD Accounts
|
10%
|
10%
|
20%
|
Payment
in excess of Rs. 10000/-
|
|
|
194A
|
Interest
other than interest on securities
|
10%
|
10%
|
20%
|
Payment
in excess of Rs. 5000/-
|
|
|
194B
|
Winning
from Lotteries
|
30%
|
30%
|
30%
|
Payment
in excess of Rs. 10000/-
|
|
|
194BB
|
Winning
from Horse Race, Cross word puzzle
|
30%
|
30%
|
30%
|
Payment
in excess Rs. 10000/-
|
|
|
194C
|
Contractor
(No
TDS for Transport Contractors if quoting PAN and engaged in the business for
plying, hiring or leasing of goods carriages)
|
1%
|
2%
|
20%
|
Payment in excess of Rs. 30000/-
in a single bill and Rs. 100000/- P.A.
|
|
|
194D
|
Insurance
Commission
|
10%
|
10%
|
20%
|
Payment in excess Rs. 20000/-
|
|
|
194DA
|
Payment
inrespect of LIC Policy
|
1%
|
1%
|
20%
|
Payment in excess Rs. 100000/-
|
|
|
194H
|
Commission or Brokerage
|
5%
|
5%
|
20%
|
Payment in excess Rs. 5000/-
|
|
|
194I
|
Rent of Land & Building,
Furniture & Fittings
|
10%
|
10%
|
20%
|
Payment in excess Rs. 180000/-
|
|
|
194I
|
Rent of Plant & Machinery
and Other Equipments
|
1%
|
2%
|
20%
|
Payment in excess Rs. 180000/-
|
|
|
194IA
|
Transfer of Certain Immovable property
other than Agriculture Land
|
1%
|
1%
|
20%
|
Payment in excess Rs. 5000000/-
|
|
|
194J
|
Professional Services and
Technical Services & Royalty
|
10%
|
10%
|
20%
|
Payment in excess Rs. 30000/-
|
|
Income Tax Slab F.Y. 2015-2016 & A.Y. 2016-2017
(Salary). Individual, HUF, BOI, AOP, AJP below the age of 60 years,
being a resident of India.
|
Sl. No.
|
Net Income Level
|
Rate of Income Tax
|
|
i.
|
Income Less than Rs. 2.5 Lakh
|
NIL
|
|
ii.
|
Income greater than Rs. 2.5 Lakh
but Less than Rs. 5 Lakh
|
10% of balance amount which
exceeds Rs. 2.5 Lakh
|
|
iii.
|
Income greater than Rs. 5 Lakh but
Less than Rs. 10 Lakh
|
Rs. 25000/- Plus 20% of balance
amount which exceeds Rs. 5 Lakh
|
|
iv.
|
Income greater than Rs. 10 Lakh
|
Rs. 125000/- Plus 30% of balance
amount which exceeds Rs. 10 Lakh
|
Note: E. Cess@2% and S&HE
Cess@1% applicable for all cases
Income Tax Slab F.Y. 2015-16 & A.Y. 2016-2017 (Salary).
Individual age of 60 years or above
but less than 80 years, being a resident of India.
|
Sl.
No.
|
Net
Income Level
|
Rate
of Income Tax
|
|
i.
|
Income Less than Rs. 3 Lakh
|
NIL
|
|
ii.
|
Income greater than Rs. 3 Lakh but Less than Rs. 5
Lakh
|
10% of balance amount which exceeds Rs. 3 Lakh
|
|
iii.
|
Income greater than Rs. 5 Lakh but Less than Rs.
10 Lakh
|
Rs. 20000/- Plus 20% of balance amount which
exceeds Rs. 5 Lakh
|
|
iv.
|
Income greater than Rs. 10 Lakh
|
Rs. 120000/- Plus 30% of balance amount which
exceeds Rs. 10 Lakh
|
Note: E. Cess@2% and S&HE Cess@1% applicable for
all cases
Income Tax Slab F.Y.
2015-16 & A.Y. 2016-2017 (Salary). Individual age of 80 years or above, being a resident of
India.
|
Sl.
No.
|
Net
Income Level
|
Rate
of Income Tax
|
|
i.
|
Income Less than Rs. 5 Lakh
|
NIL
|
|
ii.
|
Income greater than Rs. 5 Lakh but Less than Rs.
10 Lakh
|
20% of balance amount which exceeds Rs. 5 Lakh
|
|
iii.
|
Income greater than Rs. 10 Lakh
|
Rs. 100000/- Plus 30% of balance amount which
exceeds Rs. 10 Lakh
|
Note: E. Cess@2% and S&HE Cess@1% applicable for
all cases
Income Tax Slab F.Y.
2016-17 & A.Y. 2017-2018 (Salary). Individual, HUF, BOI, AOP, AJP below the age of 60 years,
being a resident of India.
|
Sl.
No.
|
Net
Income Level
|
Rate
of Income Tax
|
|
i.
|
Income Less than Rs. 2.5 Lakh
|
NIL
|
|
ii.
|
Income greater than Rs. 2.5 Lakh but Less than Rs.
5 Lakh
|
10% of balance amount which exceeds Rs. 2.5 Lakh
|
|
iii.
|
Income greater than Rs. 5 Lakh but Less than Rs.
10 Lakh
|
Rs. 25000/- Plus 20% of balance amount which
exceeds Rs. 5 Lakh
|
|
iv.
|
Income greater than Rs. 10 Lakh
|
Rs. 125000/- Plus 30% of balance amount which
exceeds Rs. 10 Lakh
|
Note: E. Cess@2% and S&HE Cess@1% applicable for
all cases
Income Tax Slab F.Y.
2016-17 & A.Y. 2017-2018 (Salary). Individual age of 60 years or above but less than 80 years,
being a resident of India.
|
Sl.
No.
|
Net
Income Level
|
Rate
of Income Tax
|
|
i.
|
Income Less than Rs. 3 Lakh
|
NIL
|
|
ii.
|
Income greater than Rs. 3 Lakh but Less than Rs. 5
Lakh
|
10% of balance amount which exceeds Rs. 3 Lakh
|
|
iii.
|
Income greater than Rs. 5 Lakh but Less than Rs. 10
Lakh
|
Rs. 20000/- Plus 20% of balance amount which
exceeds Rs. 5 Lakh
|
|
iv.
|
Income greater than Rs. 10 Lakh
|
Rs. 120000/- Plus 30% of balance amount which
exceeds Rs. 10 Lakh
|
Note: E. Cess@2% and S&HE Cess@1% applicable for
all cases
Income Tax Slab F.Y.
2016-17 & A.Y. 2017-2018 (Salary). Individual age of 80 years or above, being a resident of
India.
|
Sl.
No.
|
Net
Income Level
|
Rate
of Income Tax
|
|
i.
|
Income Less than Rs. 5 Lakh
|
NIL
|
|
ii.
|
Income greater than Rs. 5 Lakh but Less than Rs.
10 Lakh
|
20% of balance amount which exceeds Rs. 5 Lakh
|
|
iii.
|
Income greater than Rs. 10 Lakh
|
Rs. 100000/- Plus 30% of balance amount which
exceeds Rs. 10 Lakh
|
Note: E. Cess@2% and S&HE Cess@1% applicable for
all cases
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