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):
|Section||Nature of payment||When to deduct - minimum payment|
(minimum amount exceeds to deduct TDS)
|192||Salary||When net estimated salary exceeds the basic tax free limit as per income tax slab||As per income tax slab|
|192A||Payment of accumulated balance of PF, 1952 to employees ( wef - 1/6/15)||At the time of payment||30,000||10%|
|193||Interest on securites*||Credit or payment whichever is earlier||5,000||10%|
|194||Dividend||Before making payment to shareholders ( other than dividend u/s 115-0)||20%|
|194A||interest other than interest on securites#||Deduction is required when amount credited or payment whichever is earlier.||5,000,|
For banks- 10,000
|194B||Winning from lottery, crossword puzzles, card games, tv game show||at the time of payment||5,000||30%|
|194BB||Winning from horse races||At the time of payment||2,500||30%|
|194C**||payment to contractor / subcontractor||At 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
|194D||insurance commission||Payment or credit whichever is earlier||20,000||10%|
|194DA||Payment under life insurace policy (including bonus)||At the time of payment||1,00,000||2%|
|194H||Commission/ brokerage||Payment or credit whichever is earlier||5,000||10%|
|194I||rent||payment or credit whichever is earlier||1,80,000 annually||10% - when rent is for land, building , furniture
2%- when rent is for plan, machinery, equipment
|194J||Fees 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 earlier||Rs. 30,000||10%|
|194IA||Payment of transfer of certain immovable property other than agriculture land||Payment or credit whichever is earlier||Rs. 50 lakh||1%|
|194LB||Payment of interest on infrastructure debt fund to non resident or foreign company||Payment or credit whichever is earlier||-||5%***|
|194LBA||Payment of distributed income to resident unit holder by business trust||Payment or Credit||-||10%|
|194LBA||Payment of distributed income to non resident unit holder by business trust||Payment or Credit||-||5%***|
|194LBB||Payments of distribution income to unit holders of investment fund ( wef 1/6/15)||Payment or Credit whichever is earlier||10%|
|194LC||Payment of interest by indian company/ business trust for money borrowed in foreign currency under loan agreement or issuance of bonds||Payment or Credit whichever is earlier||5%***|
|194LD||Payment of interest on rupee denominated bond of indian company/ government securities to foreign institutional investor or qualified foreign investor||Payment or Credit whichever is earlier||5%|
|206C||sale of bullion or jewellery||At the time of sale||2 Lakh||1%|
*Interest on securities covers interest on the following:
- Any debentures of securities issued by local authority, central, state or provincial act.
- Debentures issued by companies-listed , unlisted debentures issued by company in which public are substantially interested.
- Securities of central or state government.
- 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.
When payment is made to person who does not furnish his PAN, TDS shall be deducted at the rate of higher of the following:
- The rate prescribed in the act
- The rate prescribed in the Finance act
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
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.