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    Aug 8, 2016

    TDS Rate Chart for FY 2016-17 AY 2017-18

    The Income tax department made many changes in TDS rates as well as in cut off limits for FY 2016-17 which are applicable from 1 June 2016. So we need both before 1 June 2016 and after 1 june 2016 chart for calculating TDS for the finanbcial year 2016-17 pertaining to Analysis year 2017-18.

    Some Points also should note about TDS Chart below.
    1. No TDS on service Tax: As per circular 01/2014 dated 13.01.2014 TDS is not applicable on service tax part if service tax is shown separately. 

    2. TDS at higher rate i.e., 20% has to be deducted if the deductee does not provide PAN to the deductor.(read detail u/s 206AA) 

    3. TDS on Good Transport w.e.f 01.06.2015 : TDS shall be applicable on payment to transporter wef 01.06.2015 .However Tds exemption will be available only to those transporters who own ten or less goods carriages at any time during the previous year. Such a transporter would also need to furnish a declaration to that effect to the payer along with the PAN.

    4. Surcharge on TDS on salary is applicable if taxable salary is more than one crore @ 15 % 

    5. Surcharge on tax other than salary is not deductible/collectible at source in case of resident individual/ HUF /Firm/ AOP / BOI/Domestic Company in respect of payment of income other than salary. 

    6. Surcharge on TDS is applicable on payment made to non resident other than company ,if payment is in excess of one crores.(15 %) (See chart below for details )

    7. TDS is deductible on full amount if threshold limit is crossed during the year including the amount paid earlier during the year along with interest ,if applicable.

    8. No Cess on payment made to resident: Education Cess is not deductible/collectible at source in case of resident Individual/HUF/Firm/ AOP/ BOI/ Domestic Company in respect of payment of income other than salary.Education Cess @ 2% plus secondary & Higher Education Cess @ 1% is deductible at source in case of non-residents and foreign company. 

    9. Section 206AA in the Act makes furnishing of PAN by the employee compulsory in case of receipt of any sum or income or amount, on which tax is deductible. If employee (deductee) fails to furnish his/her PAN to the deductor , the deductor has been made responsible to make TDS at higher of the following rates: 
    i) at the rate specified in the relevant provision of this Act; or 
    ii) at the rate or rates in force; or 
    iii) at the rate of twenty per cent. The deductor has to determine the tax amount in all the three conditions and apply the higher rate of TDS. 

    However, where the income of the employee computed for TDS u/s 192 is below taxable limit, no tax will be deducted. But where the income of the employee computed for TDS u/s 192 is above taxable limit, the deductor will calculate the average rate of income-tax based on rates in force as provided in sec 192. If the tax so calculated is below 20%, deduction of tax will be made at the rate of 20% and in case the average rate exceeds 20%, tax is to deducted at the average rate. Education cess @ 2% and Secondary and Higher Education Cess @ 1% is not to be deducted, in case the tax is deducted at 20% u/s 206AA of the Act.
    TDS RATE CHART FOR FY 21016-17 AY 2017-18 (1-4-2016 to 31-05-2016)
    Sec
    Nature
    Cut-off
    Indiviual/HUF
    Others
    192
    Salaries
    -
    Avg Rates
    NA
    192A
    Premature withdrawl from EPF
    30000
    10
    NA
    193
    Interest on Securities
    10000
    10

    194
    Dividends
    2500
    10

    194A
    Interest Banks
    10000
    10

    194A
    Interest Others
    5000
    10

    194B
    Winning from Lotteries
    10000
    30

    194BB
    Winning from Horse Race
    5000
    30

    194C
    Contractor-Single/Yearly
    30000/75000
    1
    2

    Transporter 44AE Declaration with PAN
    do
       -
      -
    194D
    Insurance Commission
    20000
    10

    194DA
    Life Insurance Policy
    100000
    2%

    194EE
    NSS
    2500
    20%
    NA
    194G
    Commission/Lottery
    1000
    10%

    194H
    Commission/Brokerage
    5000
    10%

    194I
    Rent Land & Building
    180000
    10%


    Rent Plant/Machinery./Equipments

    2%

    194IA
    Immovable Property
    50 Lakh
    1

    194J
    Professional Fees
    30000
    10%

    194LA
    Immovable Property (Sale)
    2 Lakh
    10%





    TDS RATE CHART FOR FY 21016-17 AY 2017-18 (1-06-2016 to 31-03-2017)
    Sec
    Nature
    Cut-off
    Indiviual/HUF
    Others
    192
    Salaries
    -
    Avg Rates
    NA
    192A
    Premature withdrawl from EPF
    50000
    10
    NA
    193
    Interest on Securities
    10000
    10

    194
    Dividends
    2500
    10

    194A
    Interest Banks
    10000
    10

    194A
    Interest Others
    5000
    10

    194B
    Winning from Lotteries
    10000
    30

    194BB
    Winning from Horse Race
    10000
    30

    194C
    Contractor-Single/Yearly
    30000/1 Lakh
    1
    2

    Transporter 44AE Declaration with PAN
    do
       -
      -
    194D
    Insurance Commission
    15000
    5%

    194DA
    Life Insurance Policy
    100000
    1%

    194EE
    NSS
    2500
    10%
    NA
    194G
    Commission/Lottery
    15000
    5%

    194H
    Commission/Brokerage
    15000
    5%

    194I
    Rent Land & Building
    180000
    10%


    Rent Plant/Machinery./Equipments

    2%

    194IA
    Immovable Property
    50 Lakh
    1

    194J
    Professional Fees
    30000
    10%

    194LA
    Immovable Property (Sale)
    2.5 Lakh
    10%

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