TDS RATES

Here are your rates of TDS for FY 2016-17!

Whenever you forget what rate of TDS to use, just remember Moneyम्जी has TDS rate chart for you.

Rates of TDS for Financial Year 2016-17
(with effect from 01-06-2016)
S. No Nature of Payment Section Threshold Limit for deducting TDS Payment made to Individual/HUF Payment made to other than individual/HUF
1 Interest** 194A 5,000 10% 10%
2 Winnings from lottery, cross word puzzles card games, horse race, games of any sort including T.V. Game Shows 194B 10,000 30% 30%
3 Payments to contractors/sub contractors*/** 194C 1,00,000 1% 2%
4 Insurance Commission 194D 15,000 5% 5%
5 Commission/Brokerage** 194H 15,000 5% 5%
6 Rent for land, building, etc** 194I 180,000 10% 10%
7 Rent for machinery plant/equipment** 194I 180,000 2% 2%
8 Payment on transfer of immovable 194IA 50,00,000 1% 1%
9 Fees for professional or technical services** 194J 30,000 10% 10%

* Individuals/HUF liable for tax audit in the last financial year have to deduct TDS, while making payment to contractors. If contract is for personal purposes of individual/HUF, then no TDS to be deducted.

** TDS not applicable for individuals/HUF not liable to tax audit.

  1. If tax is not deducted / deducted but not paid to Govt. within the due date for filing return of income, 30% of the relevant expenditure will not be allowed as deduction.
  2. The TDS made should be paid to the government within first week of the subsequent month of deduction. In case of provisions made as on 31st March, TDS has to be paid within one month.
  3. In case of Banks, Co-Operative Banks, Post Office, the Annual Limit for interest to attract TDS is Rs. 10,000/-.
  4. In case of 194B Rs. 10,000/- is the limit for other games and Rs. 2,500/- is the limit for horse race.
  5. In case of 194C, TDS has to be made if the Single payment/credit exceeds Rs.30,000/- and also if the annual payment/credit exceeds Rs.1,00,000/-.
  6. In case of Transport Contracts, no TDS has to be made if the receiver provides with the PAN (applicable only if the transporter does not own more than 10 transport vehicles). If the transporter owns more than 10 transport vehilces, TDS provisions are applicable.
  7. The return for the first three quarters of the year has to be filed within 1 month from end of the quarter.
  8. The return for the last quarter (January to March) has to be filed before 31st May.
  9. Where the tax is deducted and paid to a Non-Resident/ Foreign Company, further additional E.Cess .2% & S.H.E Cess.1% of income tax.
  10. TDS has to be made at the time of payment or crediting the account which ever is earlier.
  11. TDS certificates to be issued within 1.5 months from end of the quarter for the first three quarters of the year. TDS certificates for the last quarter to be issued within 2.5 months from end of the last quarter of the year
  12. The above rules are applicable for Tax collected at source (TCS) from sales of scrap etc. also.
  13. In case of payment to Non-Residents & Non-Domestic Companies, please contact us to know the rate of TDS.
  14. The TDS not made within due dates will attract interest @ 1% for every month or part thereof from the due date of deduction till the actual date of deduction.
  15. The TDS not paid within due dates will attract interest @ 1.5% for every month or part thereof from the date of deduction till the date of payment.
  16. The Tax Collected at Source (TCS) from sale of Scrap is to be made at 1.5%

If the receiver (Deductee) has not provided the Permanent Account Number (PAN), the rate of TDS is 20% irrespective of the category & section.