TDS/TCS Rates Chart for FY 2015-16 / AY 2016-17

Published On - March 5, 2015

admin Income Tax, TCS, TDS

Proposed TDS/TCS Rates Chart for Financial Year 2015-16 / Assessment Year 2016-17 vide Finance Bill 2015 i. e. Budget 2015-16.

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.

Sl. No. Section Nature of Payment in brief Cut Off Amount Rate %
HUF/IND Others
1 192 Salaries Average Rate
2 193 Interest on debentures 5000 10 10
3 194 Deemed dividend – 10 10
4 194A Interest other than Int on securities (by Bank) 10000 10 10
4A 194A Interest other than Int. on securities (By others) 5000 10 10
5 194B Lottery / Cross Word Puzzle 10000 30 30
6 194BB Winnings from Horse Race 5000 30 30
7 194C(1) Contracts * 30000 1 2
8 194C(2) Sub-contracts/ Advertisements * 30000 1 2
9 194D Insurance Commission 20000 10 10
10 194EE Paymentsout of deposits under NSS 2500 20 –
11 194F Repurchase of units by MF/UTI 1000 20 20
12 194G Commission on sale of lottery tickets 1000 10 10
13 194H Commission or Brokerage 5000 10 10
14 194I Rent (Land & building) 180000 10 10
Rent (P & M , Equipment, furniture & fittings) 180000 2 2
15 194J Professional/Technical charges/Royalty & Non-compete fees 30000 10 10
16 194J(1)(ba) Any remuneration or commission paid to director of the company(Effective from 1 July 2012) NIL 10 10
17 194LA Compensation on acquisition of immovable property 200000 10 10
18 194IA Payment on transfer of certain immovable property other than agricultural land (applicable only if amount exceeds : (a) Value exceeds INR 50) (Effective from 1 June 2013) 1 1
19 194LBA on income distributed by business trust to its holders ( Sec 194LBA –wef 1.6.15) 10 10


# 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 by co-operative banks to its members the TDS Provision is applicable from 1-6-2015.
  3. 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.
  4. In case of section 194LA, the sub-registrar shall register the document only after the challan for payment of TDS is presented before him.
  5. 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%