TDS compliance is necessary for deductor to avoid high penalties and interest. I have presented here latest TDS rate chart for FY 2015-16 (AY 2016-17) covering amedment in budget 2015. Deduct the TDS as per chart and deposit within due date.

 

 

 

TDS rate chart for fy 2015-16 ( ay 2015-16):

 

SectionNature of paymentWhen to deduct - minimum payment
(Threshold limt)
Threshold limit
(minimum amount exceeds to deduct TDS)
TDS rate
192SalaryWhen net estimated salary exceeds the basic tax free limit as per income tax slabAs per income tax slab
192APayment of accumulated balance of PF, 1952 to employees ( wef - 1/6/15)At the time of payment30,00010%
193Interest on securites*Credit or payment whichever is earlier5,00010%
194DividendBefore making payment to shareholders ( other than dividend u/s 115-0)20%
194Ainterest other than interest on securites#Deduction is required when amount credited or payment whichever is earlier.

5,000,
For banks- 10,000
10%
194BWinning from lottery, crossword puzzles, card games, tv game show at the time of payment5,00030%
194BBWinning from horse racesAt the time of payment2,50030%
194C**payment to contractor / subcontractorAt the time of credit or payment whichever is earlier,
30,000 - single payment,
75,000- total annual payment
1% when payee is individual/ HUF,
2% when payee is other than Individual/ HUF
194Dinsurance commissionPayment or credit whichever is earlier
20,00010%
194DAPayment under life insurace policy (including bonus)At the time of payment1,00,0002%
194HCommission/ brokeragePayment or credit whichever is earlier
5,00010%
194Irent payment or credit whichever is earlier1,80,000 annually10% - when rent is for land, building , furniture
2%- when rent is for plan, machinery, equipment
194JFees for technical services,
Fees for professional services,
Fees for non carrying out any activity related to business
For not sharing any know how, patent, copyright etc.
payment or credit whichever is earlierRs. 30,00010%
194IAPayment of transfer of certain immovable property other than agriculture landPayment or credit whichever is earlierRs. 50 lakh1%
194LBPayment of interest on infrastructure debt fund to non resident or foreign companyPayment or credit whichever is earlier-5%***
194LBAPayment of distributed income to resident unit holder by business trustPayment or Credit-10%
194LBAPayment of distributed income to non resident unit holder by business trustPayment or Credit-5%***
194LBBPayments of distribution income to unit holders of investment fund ( wef 1/6/15)Payment or Credit whichever is earlier10%
194LCPayment of interest by indian company/ business trust for money borrowed in foreign currency under loan agreement or issuance of bondsPayment or Credit whichever is earlier5%***
194LDPayment of interest on rupee denominated bond of indian company/ government securities to foreign institutional investor or qualified foreign investorPayment or Credit whichever is earlier5%
206Csale of bullion or jewelleryAt the time of sale2 Lakh1%

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Note:

*Interest on securities covers interest on the following:

  1. Any debentures of securities issued by local authority, central, state or provincial act.
  2. Debentures issued by companies-listed , unlisted debentures issued by company in which public are substantially interested.
  3. Securities of central or state government.
  4. Any other securities.

For cooperative banks, tds provision will be applicable from 1/6/15.

**For section 194C, no tds deducted shall be deducted when contractor/ subcontractor is in transport business having less than 10 goods carriage and present the PAN number and declaration to that effect.

***Surcharge, education cess and higher education cess shall be added to the TDS rate while paying to non resident.

IMPORTANT:

When payment is made to person who does not furnish his PAN, TDS shall be deducted at the rate of higher of the following:

  1. The rate prescribed in the act
  2. The rate prescribed in the Finance act
  3. 20%.

TDS rate chart for fy 2015-16 is similar to TDS rate chart for fy 2014-15 except some changes in budget 2015.

Get detailed knowledge of budget from this link.

You can read my post

TDS rate chart 2014-15

to compare the rate of tds with regards to fy 2015-16 and fy 2014-15.

 

Tax deduction at source is compiling us to remember various rate while paying or crediting the amount. You can get print out of tds rate  chart for fy 2015-16 by using print button below. Please share this post with friends to encourage me to write more.