TDSMAN Blog

Smart & Easy TDS Software for Preparing TDS Returns

TDSMAN Blog - Smart & Easy TDS Software for Preparing TDS Returns

TDS & TCS RATE CHART (FY: 2017-18 / AY: 2018-19)

  TDS RATE CHART FY: 2017-18 (AY: 2018-19)
Section Nature of Payment  Threshold Indv/ HUF Others
    Rs. TDS Rate (%)
192 Salaries   Avg 
192A Premature withdrawal from EPF  50000 10
193 Interest on Securities  10000 10 10
194 Dividends  2500 10 10
194A Interest (Banks)  10000 10 10
194A Interest (Others) 5000 10 10
194B Winning from Lotteries  10000 30 30
194BB Winnings from Horse Race 10000 30 30
194C Contractor – Single Transaction  30000 1 2
194C Contractor-During the F.Y.  1 Lakh 1 2
194C Transporter (44AE) declaration with PAN
194D Insurance Commission(15G-15H allowed)  15000 5 5
194DA Life insurance Policy  1 Lakh 1 1
194E Non-Resident Sportsmen or Sports Association 20 20
194EE  NSS  2500 10 10
194F Repurchase Units by MFs  –  20 20
194G Commission – Lottery  15000 5 5
194H Commission / Brokerage  15000 5 5
194I  Rent of Land and Building – F&F 1.80 Lakh 10 10
194I Rent of Plant/Machinery/Equipment  1.80 Lakh 2 2
194IB Rent by Individual/HUF(wef 01.06.2017) 50000/PM  5
194IA  Transfer of certain immovable property other than agriculture land 50 Lakh 1 1
194J  Professional Fees/ Technical Fees/ etc. 30000 10 10
194J  Payment to Call Centre Operator (wef 01.06.2017) 30000 2 2
194LA Compensation on transfer of certain immovable property other than agricultural land 2.50 Lakh  10 10
194LA  Immovable Property(TDS exempted under RFCTLARR Act (wef 01.04.2017)
194LB Income by way of interest from infrastructure debt fund (non- resident) 5 5
Sec 194 LC  Income by way of interest by an Indian specified company to a non-resident / foreign company on foreign currency approved loan / long-term infrastructure bonds from outside India (applicable from July 1, 2012) 5 5
194LD  Interest on certain bonds and Govt. Securities(from 01-06-2013) 5 5
Note : TDS Rates without PAN – 20% flat (if TDS rate is lower than 20%)

Note: The above list covers most of the sections applicable for domestic transactions

TCS RATES FOR FY: 2017-18 (AY: 2018-19)
Section Nature of Payment TCS Rate %
 206C Scrap 1
 206C Tendu Leaves 5
 206C Timber  obtained  under  a forest lease or other mode 2.5
 206C Any other forest produce not being a timber or tendu leave 2.5
 206C Alcoholic Liquor for human consumption 1
 206C Parking   Lot,   toll   plaza, mining and Quarrying 2
 206C Minerals, being coal or lignite or iron ore (applicable   from   July   1,2012) 1
 206C Sale of motor vehicle of the value exceeding Rs. 10 Lacs; (wef 01.06.2016)

Motor vehicle clause Not applicable on Central Government, a State Government, an embassy, a High Commission, legation, commission, consulate and the trade representation of a foreign State; local authority ; a public sector company which is engaged in the business of carrying passengers (wef 01.04.2017)

1
Note : TCS Rates without PAN – Double of TCS rate as above or 5%, whichever is higher

Note: The above list covers most of the sections applicable for domestic transactions

Note :
1. Surcharge is not deductible on payments made to residents, other than salary.
2. In case of non-resident, surcharge would be applicable on TDS.

Disclaimer : Efforts have been made to provide correct information. However, we do not take liability of any kind in case of any error or miscommunication in the article.

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TDSMAN (FY: 2017-18) – New Additional Features

TDSMAN (FY: 2017-18) Software is now packed with more additional features which will help you to prepare error free TDS Returns.

Pay Tax Online (Challan 281) – Auto Fill: This feature allows the company details to be auto filled while making TDS payment. To use this feature, go to utilities menu > Pay Tax Online (Challan 281) – Auto Fill

Auto Backup: Users can now set auto backup of their data through the software at a specified date and time. To use this feature, go to utilities menu > Backup / Restore > Set Auto Backup

PAN Verification: PAN verification is now re-enabled to let users verify their PAN and avoid default notices. To use this feature, go to utilities menu > PAN Verification

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Budget 2017 – Changes in TCS Provisions

1.Restriction on cash transactions

It is also proposed to consequentially amend the provisions of section 206C to omit the provision relating to tax collection at source at the rate of one per cent. of sale consideration on cash sale of jewellery exceeding five lakh rupees.

This amendment will take effect from 1st April, 2017.

2.Exemption from tax collection at source under sub-section (1F) of section 206C in case of certain specified buyers.

The existing provision of sub-section (1F) of section 206C of the Act, inter-alia provides that the seller who receives consideration for sale of a motor vehicle exceeding ten lakh rupees, shall collect one per cent of the sale consideration as tax from the buyer.

In order to reduce compliance burden in certain cases, it is proposed to amend section 206C, to exempt the following class of buyers such as the Central Government, a State Government, an embassy, a High Commission, legation, commission, consulate and the trade representation of a foreign State; local authority as defined in explanation to clause (20) of Section 10; a public sector company which is engaged in the business of carrying passengers, from the applicability of the provision of subsection (1F) of section 206C of the Act.

This amendment will take effect from 1st April, 2017.

3.Strengthening of PAN quoting mechanism in the TCS regime

Statuary provisions for deduction of tax at source (TDS) at higher rate of 20% or the applicable rate whichever is higher) in case of non-quoting of Permanent Account Number (PAN) is provided under section 206AA of the Act and it exist since April, 2010.

PAN acts as a common thread for linking the information in the departmental data base. It may also be noted that the process of allotment of PAN is made simple and robust. PAN application can be made online and PAN gets allotted in less than a week.

In order to strengthen the PAN mechanism, it is proposed to insert new section 206CC to provide the following:

i. any person paying any sum or amount, on which tax is collectable at source under Chapter XVII BB (hereafter referred to as collectee) shall furnish his Permanent Account Number to the person responsible for collecting such tax (hereafter referred to as collector), failing which tax shall be collected at the twice the rate mentioned in the relevant section under Chapter XVII BB or at the rate of five per cent. whichever is higher.

ii. that the declaration filed under sub section (1A) of section 206C shall not be valid unless the person filing the declaration furnishes his Permanent Account Number in such declaration.

iii. that in case any declaration becomes invalid under sub-section (2), the collector shall collect the tax at source in accordance with the provisions of sub-section (1).

iv. no certificate under sub section (9) of section 206C shall be granted unless it contains the Permanent Account Number of the applicant.

v. the collector knows about the correct PAN of the collectee it is also proposed to provide for mandatory quoting of PAN of the collectee by both the collector and the collectee in all correspondence, bills and vouchers exchanged between them.

vi. that the collectee shall furnish his Permanent Account Number to the collector who shall indicate the same in all its correspondence, bills, vouchers and other documents which are sent to collectee.

vii. where the Permanent Account Number provided by the collectee is invalid or it does not belong to the collectee, then it shall be deemed that Permanent Account Number has not been furnished to the collector.

viii. to exempt the non-resident who does not have permanent establishment in India from the provisions of this proposed section 206CC of the Act.

This amendment will take effect from 1st April, 2017.

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