TDSMAN Blog

Smart & Easy TDS Software for Preparing TDS Returns

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

Where TDS is applicable and how to avoid it

Salary income: Employer deducts TDS on total income, including income other than salary after taking into account all deductions and exemptions. This saves the individual the hassle of paying tax himself.

TDS rate: As applicable to individual based on his income and deductions.

Interest income: TDS is deducted by banks on FDs and RDs if the interest exceeds Rs 10,000 a year. TDS does not end tax liability. Someone in a higher tax slab will need to pay additional tax. Those in lower income bracket can seek a tax refund.

TDS rate: If PAN has been provided, TDS is 10% of income. Otherwise it is 20% of income.

EPF withdrawals: Withdrawals from Employee Provident Fund are subject to TDS if you withdraw before five years of service. However, no TDS is deducted on withdrawals of less than Rs 30,000.

TDS rate: If PAN has been provided, TDS is 10% of the withdrawal. Otherwise it is 20% of the amount.

Property sale: TDS is applicable if the value of the property exceeds Rs 50 lakh. If instalments are being paid TDS is deducted on each instalment. The buyer must obtain a Tax Deduction Account Number to deduct TDS. TDS has to be de -posited along with Form 26QB within a week from the end of the month in which TDS was deducted. Buyer must give TDS certificate to the seller.

TDS rate: If PAN has been provided, TDS is 1% of sale value. Otherwise it is 20% of the sale value.

On NRIs: NRIs are not permitted to submit Form 15G/H for NRO deposits and TDS is mandatory on all incomes. In case of resident Indians, TDS kicks in only if interest exceeds Rs 10,000 a year. But there are no such threshold for NRO deposits. Easwar committee has recommended easing of TDS rules for NRIs.

TDS rate: 30% on interest income from bank deposits, 20% from corporate deposits, 15% on short-term capital gains if securities transaction tax (STT) has been paid and 10% on longterm capital gains. If no STT is paid on short-term gains, TDS is 30%. Flat rate of 20% on sale of property.

How to avoid it

TDS can be avoided by submitting Form 15G or 15H. Form 15H is for senior citizens. It can be submitted if there is no tax on total income. Form 15G is for everybody else, except NRIs. It can be filed if tax on total income is nil and total interest income is less than the basic exemption limit.

Source: The Economic Times

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TDS and TCS Rates for FY: 2016-17 (Domestic)

TDS Rates for FY: 2016-17

(Domestic)

Nature of Payment Made To Residents

Threshold(Rs.)

Company / Firm / Co-operative Society / Local Authority

Individual / HUF

If No / Invalid PAN

Section – Description IT Rate (%) IT Rate (%)

IT Rate (%)

192 – Salaries

NA Average rates as applicable

30

192A – Payment of accumulated balance due to an employee.(applicable from 01.06.2015)

30000

10% (1-April-2016 to 31-May-2016)

10% (1-Jun-2016 to 31-Mar-2017)

30

193 – Interest on securities

10000

10 10

20

194 – Dividends

2500

10 10

20

194A – Interest other than interest on securities – Others

10 10

20

194A – Banks

10000

10 10

20

194B – Winning from Lotteries

10000

30 30

30

194BB – Winnings from Horse Race

5000 (1-April-2016 to 31-May-2016)

10000 (1-Jun-2016 to 31-Mar-2017)

30 30

30

194 C – Payment to Contractors

Payment to Contractor

75000 (1-April-2016 to 31-May-2016)

100000 (1-Jun-2016 to 31-Mar-2017)

2 1

20

– Contract –

Transporter who has provided valid PAN

20

194D – Insurance Commission

20000 (1-April-2016 to 31-May-2016)

15000 (1-June-2016 to 31-Mar-2017)

10 5

20

194DA Payment in respect of life insurance policy(applicable from 01.10.2014)

100000

2 % (1-April-2016 to 31-May-2016)

1 % (1-June-2016 to 31-Mar-2017)

2 % (1-April-2016 to 31-May-2016)

1 % (1-June-2016 to 31-Mar-2017)

20

194E – Payment to Non-Resident Sportsmen or Sports Association

20 20

20

194EE – Payments out of deposits under NSS

2500

20% (1-April-2016 to 31-May-2016)

10% (1-Jun-2016 to 31-Mar-2017)

20% (1-April-2016 to 31-May-2016)

10% (1-Jun-2016 to 31-Mar-2017)

20

194F – Repurchase Units by MFs

0

20 20

20

194G – Commission – Lottery

1000 (1-April-2016 to 31-May-2016)

15000 (1-Jun-2016 to 31-Mar-2017)

10% (1-April-2016 to 31-May-2016)

5 % (1-Jun-2016 to 31-Mar-2017)

10% (1-April-2016 to 31-May-2016)

5 % (1-Jun-2016 to 31-Mar-2017)

20

194H – Commission / Brokerage

5000 (1-April-2016 to 31-May-2016)

15000 (1-Jun-2016 to 31-Mar-2017)

10% (1-April-2016 to 31-May-2016)

5 % (1-Jun-2016 to 31-Mar-2017)

10% (1-April-2016 to 31-May-2016)

5 % (1-Jun-2016 to 31-Mar-2017)

20

194I – Rent – Land and Building / furniture / fittings

180000

10 10

20

194I – Rent – Plant / Machinery / equipment

180000

2 2

20

194IA -Transfer of certain immovable property other than agriculture land(w.e.f 1-6-2013)

5000000

1 1

20

194J – Professional Fees

30000

10 10

20

194LA – Immovable Property

200000 (1-April-2016 to 31-May-2016)

250000 (1-June-2016 to 31-Mar-2017)

10 10

20

194LB – Income by way of interest from infrastructure debt fund (non-resident)

5 5

20

194LBA – Certain income from units of a business trust(applicable from 01.10.2014)

10 10

20

194LBA – Certain income from units of a business trust to non resident (applicable from 01.10.2014)

5 5

20

194LBB – Income in respect of units of investment fund. (applicable from 01.06.2015)

10% For Residents

10% For Non Residents (1-April-2016 to 31-May-2016)

40% For Non Residents (1-Jun-2016 to 31-Mar-2017)

10% For Residents

10% For Non Residents ( 1-April-2016 to 31-May-2016)

30 % For NonResidents (1-Jun-2016 to 31-Mar-2017)

20/30/40

Sec 194LBC – Income in respect of investment in securitisation trust.

30% For Residents

40% For Non Residents

25% For Residents

30% For Non Residents

25/30/40

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

20

194LD – Interest on certain bonds and govt. Securities(from 01-06-2013)

5 5

20

Click here to view complete list of TDS Rates for FY: 2016-17.

TCS Rates for FY: 2016-17

Section Nature of Payment Cut-off Amount TCS Rates (%)
FY:2012-13 to 2015-16 FY:2016-17
      Individual / HUF Other Individual / HUF Other
206C Scrap 1 1 1 1
206C Tendu Leaves 5 5 5 5
206C Timber obtained under a forest lease or other mode 2.5 2.5 2.5 2.5
206C Any other forest produce not being a timber or tendu leave 2.5 2.5 2.5 2.5
206C Alcoholic Liquor for human consumption 1 1 1 1
206C Parking Lot, toll plaza, mining and quarrying 2 2 2 2
206C Minerals, being coal or lignite or iron ore (applicable from July 1, 2012) 1 1 1 1
206C Bullion if consideration (excluding any coin / article weighting 10 grams or less) exceeds Rs. 2 Lakhs or jewellery if consideration exceeds Rs. 5 Lakhs (and any amount is received in cash) (applicable from July 1, 2012) 1 1 1 1
206C TCS on sale in cash of any goods (other than bullion/jewellary) 200000 1 1
206C TCS on providing of any services (other than Ch-XVII-B) 200000 1 1
206C TCS on Motor Vehicle 1000000 1 1

Source: TRACES

Prepare error free TDS returns with TDSMAN

For more information, visit www.tdsman.com

To view the TDS rates of FY: 2012-13, Click here
To view the TDS rates of FY: 2013-14, Click here
To view the TDS rates of FY: 2015-16, Click here
To view the TDS rates of FY: 2016-17, Click here

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TDS and TCS Rates for FY: 2016-17 (Domestic)

TDS Rates for FY: 2016-17

(Domestic)

Nature of Payment Made To Residents

Threshold(Rs.)

Company / Firm / Co-operative Society / Local Authority

Individual / HUF

If No / Invalid PAN

Section – Description IT Rate (%) IT Rate (%)

IT Rate (%)

192 – Salaries

NA Average rates as applicable

30

192A – Payment of accumulated balance due to an employee.(applicable from 01.06.2015)

30000

10% (1-April-2016 to 31-May-2016)

10% (1-Jun-2016 to 31-Mar-2017)

30

193 – Interest on securities

10000

10 10

20

194 – Dividends

2500

10 10

20

194A – Interest other than interest on securities – Others

10 10

20

194A – Banks

10000

10 10

20

194B – Winning from Lotteries

10000

30 30

30

194BB – Winnings from Horse Race

5000 (1-April-2016 to 31-May-2016)

10000 (1-Jun-2016 to 31-Mar-2017)

30 30

30

194 C – Payment to Contractors

Payment to Contractor

75000 (1-April-2016 to 31-May-2016)

100000 (1-Jun-2016 to 31-Mar-2017)

2 1

20

– Contract –

Transporter who has provided valid PAN

20

194D – Insurance Commission

20000 (1-April-2016 to 31-May-2016)

15000 (1-June-2016 to 31-Mar-2017)

10 5

20

194DA Payment in respect of life insurance policy(applicable from 01.10.2014)

100000

2 % (1-April-2016 to 31-May-2016)

1 % (1-June-2016 to 31-Mar-2017)

2 % (1-April-2016 to 31-May-2016)

1 % (1-June-2016 to 31-Mar-2017)

20

194E – Payment to Non-Resident Sportsmen or Sports Association

20 20

20

194EE – Payments out of deposits under NSS

2500

20% (1-April-2016 to 31-May-2016)

10% (1-Jun-2016 to 31-Mar-2017)

20% (1-April-2016 to 31-May-2016)

10% (1-Jun-2016 to 31-Mar-2017)

20

194F – Repurchase Units by MFs

0

20 20

20

194G – Commission – Lottery

1000 (1-April-2016 to 31-May-2016)

15000 (1-Jun-2016 to 31-Mar-2017)

10% (1-April-2016 to 31-May-2016)

5 % (1-Jun-2016 to 31-Mar-2017)

10% (1-April-2016 to 31-May-2016)

5 % (1-Jun-2016 to 31-Mar-2017)

20

194H – Commission / Brokerage

5000 (1-April-2016 to 31-May-2016)

15000 (1-Jun-2016 to 31-Mar-2017)

10% (1-April-2016 to 31-May-2016)

5 % (1-Jun-2016 to 31-Mar-2017)

10% (1-April-2016 to 31-May-2016)

5 % (1-Jun-2016 to 31-Mar-2017)

20

194I – Rent – Land and Building / furniture / fittings

180000

10 10

20

194I – Rent – Plant / Machinery / equipment

180000

2 2

20

194IA -Transfer of certain immovable property other than agriculture land(w.e.f 1-6-2013)

5000000

1 1

20

194J – Professional Fees

30000

10 10

20

194LA – Immovable Property

200000 (1-April-2016 to 31-May-2016)

250000 (1-June-2016 to 31-Mar-2017)

10 10

20

194LB – Income by way of interest from infrastructure debt fund (non-resident)

5 5

20

194LBA – Certain income from units of a business trust(applicable from 01.10.2014)

10 10

20

194LBA – Certain income from units of a business trust to non resident (applicable from 01.10.2014)

5 5

20

194LBB – Income in respect of units of investment fund. (applicable from 01.06.2015)

10% For Residents

10% For Non Residents (1-April-2016 to 31-May-2016)

40% For Non Residents (1-Jun-2016 to 31-Mar-2017)

10% For Residents

10% For Non Residents ( 1-April-2016 to 31-May-2016)

30 % For NonResidents (1-Jun-2016 to 31-Mar-2017)

20/30/40

Sec 194LBC – Income in respect of investment in securitisation trust.

30% For Residents

40% For Non Residents

25% For Residents

30% For Non Residents

25/30/40

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

20

194LD – Interest on certain bonds and govt. Securities(from 01-06-2013)

5 5

20

Click here to view complete list of TDS Rates for FY: 2016-17.

TCS Rates for FY: 2016-17

Section Nature of Payment Cut-off Amount TCS Rates (%)
FY:2012-13 to 2015-16 FY:2016-17
      Individual / HUF Other Individual / HUF Other
206C Scrap 1 1 1 1
206C Tendu Leaves 5 5 5 5
206C Timber obtained under a forest lease or other mode 2.5 2.5 2.5 2.5
206C Any other forest produce not being a timber or tendu leave 2.5 2.5 2.5 2.5
206C Alcoholic Liquor for human consumption 1 1 1 1
206C Parking Lot, toll plaza, mining and quarrying 2 2 2 2
206C Minerals, being coal or lignite or iron ore (applicable from July 1, 2012) 1 1 1 1
206C Bullion if consideration (excluding any coin / article weighting 10 grams or less) exceeds Rs. 2 Lakhs or jewellery if consideration exceeds Rs. 5 Lakhs (and any amount is received in cash) (applicable from July 1, 2012) 1 1 1 1
206C TCS on sale in cash of any goods (other than bullion/jewellary) 200000 1 1
206C TCS on providing of any services (other than Ch-XVII-B) 200000 1 1
206C TCS on Motor Vehicle 1000000 1 1

Source: TRACES

Prepare error free TDS returns with TDSMAN

For more information, visit www.tdsman.com

To view the TDS rates of FY: 2012-13, Click here
To view the TDS rates of FY: 2013-14, Click here
To view the TDS rates of FY: 2015-16, Click here
To view the TDS rates of FY: 2016-17, Click here

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