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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