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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

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