Finance Adda

TDS Rate charts for the A.Y 2017-18

Basic Introduction

TDS is the tax which is deducted at the source. The person making certain payments as governed by the sections of the Indian Income Tax Act, 1961 to another person deducts tax and same is then remitted to the government account. The Govt. has imposed the duty on the person making payment to the another person to deduct tax in order to minimize the tax evasion and to confirm that the person receiving the payment does not escape from the tax bracket.

After an overview of TDS, it is important to know as to who is liable to deduct  TDS? Every person other than Individual and HUF who are responsible to make payments of the nature covered by various sections relating to TDS shall deduct TDS. The person who deducts the tax is known as Deductor and the person whose tax is deducted is known as Deductee. Apart from this Individual and HUF who are liable to get their accounts audited u/s 44AB are also liable to deduct TDS.  Tax must be deducted at the time of making of payment or at the time of crediting the payee’s account whichever is earlier.

     TDS Rate chart for A.Y 2017-18 

S.No	Section	Nature of income	Rate of TDS
1	192	Salary	On the average rates on the basis of per rates for individuals. (30% if no Valid PAN)
2	192A	Payment of accumulated balance due of Employees’ Provident Fund Scheme, 1952, to Employess which is taxable in their hand (w.e.f 01-06-15)	10% (30% if no Valid PAN)
3.	193	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	10% (20% if no Valid PAN)
4.	194	Dividend other than the dividend as referred to in Section 115O	10% (20% if no Valid PAN)
5.	194A	nterest other than “Interest on securities”	10% (20% if no Valid PAN)
6.	194B /194BB	Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort and Income by way of winnings from horse races	30% (30% if no Valid PAN)
7.	194C	Payment to contractors/ sub- contractors	2% – For payments to contractor/Sub-contractor who is not an Individual/HUF(20% if no Valid PAN) 1% – For payment to contractor/Sub-contractor who is an Individual/HUF(20% if no Valid PAN)
8.	194D	Insurance Commission	10% from 01.04.2016 to 31.05.2016 5% wef 01.06.2016) (20% if no Valid PAN)
9.	194DA	Payment under life insurance policy (including Bonus)	2% (1% wef 01.06.2016) (20% if no Valid PAN)
10.	194E	Payment to Non-Resident Sportsmen or Sports Association	20% (20% if no Valid PAN)
11.	194EE	Payment in respect of deposit under National Savings scheme (NSS)	20% (1-April-2016 to 31-May-2016) 10% (on or after 1-Jun-2016) (20% if no Valid PAN)
12.	194F	Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India	20% (20% if no Valid PAN)
13.	194G	Commission on sale of lottery tickets	10% from 01.04.2016 to 31.05.2016 5% wef 01.06.2016 (20% if no Valid PAN)
14.	194H	Payment of commission brokerage	10% from 01.04.2016 to 31.05.2016 5% wef 01.06.2016 (20% if no Valid PAN)
15.	194I	Rent	10% – If rent is for land, building or furniture(20% if no Valid PAN) 2% – If the rent is for Machinery, Plant or Equipment(20% if no Valid PAN)
16.	194IA	Payment on transfer of certain immovable property other than agriculture land.	1% (20% if no Valid PAN)
17	194IB	Rent payable by an individual or HUF not covered u/s. 194I (W.E.F. from 01.06.2017)	Threshold limit Rs. 50,000/- per month. TDS to be deducted @ 5%
	194IC	Payment of Consideration (not being in kind) under Joint Development Agreement or other similar agreement	Threshold limit Rs. Nil TDS to be deducted @ 10% (Applicable from 01.04.2017)
18	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.	10% 2% in case of payments received or credited to a payee, being a person engaged only in the business of operation of call center wef 01.06.2017. (20% if no Valid PAN)
19.	194L	Payment of Compensation on acquisition of Capital Asset	Omitted w.e.f 01.06.2016 as Section was non-operational
20.	194LA	Payment on transfer of certain immovable property other than agricultural land (Read Note-8)	10% (20% if no Valid PAN)
21.	194LB	Payment of interest on infrastructure debt fund to non-resident or foreign company	5%# (20% if no Valid PAN)

Procedure to be followed for Depositing of Tax for Section 194IA  : TDS Rate for FY 2017-18 AY 2018-19

There was a confusion regarding the depositing the tax and claim of such tax deposited. Whether the deductor would have to apply for a TAN and how and when the tax is to be deposited.

As per section 194-IA, every person (even individuals) making a payment for consideration of an immovable property, not including agricultural land, will withhold tax @ 1% of the transaction amount.

As per notification no. 39/2013 dated 31 May 2013 the following things were made clear:

1. Depositing of withholding tax
2. Issuance of certificates for such tax
3. Filing a return of withholding tax

The following procedure is followed:

The amount deducted under section 194-IA shall be deposited with the Central Government within 7 days from the end of the month in which the amount was deducted.

-          Pankaj Kr

-          Pankaj.jsa@gmail.com