TDS Rate Chart For AY 2015-16 & AY 2016-17. Tax is deductible at source at the rates given in table (infra). If PAN of the deductee is not intimated to the deductor, tax will be deducted at source by virtue of section 206AA either at the rate given in the table or at the rate of 20 per cent, whichever is higher. Further, under section 94A(5), if payment or credit is made or given to a deductee who is located in a notified jurisdictional area, tax is deductible at the rate given in the table or at the rate of 30 per cent, whichever is higher. TDS rates for the financial year 2015-16 are as follows
| Section | Nature of Income | When to Deduct | Rate of TDS |
| 192 | Salary | Monthly- at the time of payment where estimated yearly net taxable salary exceeds tax free limit | As Per Income Tax Slab |
| 192A | Payment of accumulated balance of PF, 1952 to employees ( wef – 1/6/15) | when the amount of payment or aggregate amount of payment exceeds Rs. 30,000/ | 10% |
| 193* | Interest on securites | At the time of credit or payment, whichever is earlier, when the amount exceeds Rs 5000 | 10% |
| 194 | Dividends | Before making payment to shareholder, other than dividend declared U/s. 115-0, when amount exceeds Rs. 2,500/- | 20% |
| 194A** | Interest other than interest on securites | At the time of credit or payment, whichever is earlier, when the amount exceeds Rs. 5,000/-. However, limit is Rs. 10,000/- in case of interest credited by banks including co‑operative banks to its members. | 10% |
| 194B | Winning from lottery, crossword puzzles, card games, tv game show | At the time of payment when it exceeds Rs. 5,000/- | 30% |
| 194BB | Winning from horse races | At the time of payment when it exceeds Rs. 2,500/- | 30% |
| 194C*** | Payment to contractor / subcontractor | At the time of credit or payment, whichever is earlier, when the amount of a particular contract exceeds Rs. 30,000/- or the total amount of contract during the whole year exceeds Rs. 75,000/- | 1% when payee is individual/ HUF, 2% when payee is other than Individual/ HUF |
| 194D | Insurance Commission | At the time of credit or payment, whichever is earlier when the amount exceeds Rs. 20,000/- | 10% |
| 194DA | Payment under life insurace policy (including bonus) | At the time of payment when the amount or the total amount during the whole year exceeds Rs. 1 ,00,000/- | 2% |
| 194H | Commission/ Brokerage | At the time of credit or payment whichever is earlier when the amount exceeds Rs. 5000/- | 10% |
| 194I | Rent | At the time of credit or payment, whichever is earlier, when the amount exceeds Rs. 1 ,80,000/- | 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.
| At the time of credit or payment, whichever is earlier, when the amount exceeds Rs. 30,000/ | 10% |
| 194IA | Payment of transfer of certain immovable property other than agriculture land | At the time of credit or payment, whichever is earlier, when the land is situated in specified area when amount exceeds Rs. 50 lacs | 1% |
| 194LB | Payment of interest on infrastructure debt fund to non resident or foreign company | Payment of interest on infrastructure debt fund to non resident or foreign company | 5%# |
| 194LBA | Payment of distributed income to resident unit holder by business trust | At the time of credit or payment whichever is earlier | 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) | At the time of credit or payment 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 | At the time of credit or payment 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 | At the time of credit or payment whichever is earlier | 5% |
| 206C | Collection on Sale of bullion and Jewellery | At time of sale, if sale consideration is received in cash in excess of Rs. 2 Lacs | 1% |
Notes
* 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.
** Interest other than interest on securites
- ☻In case of interest payment on time deposits by co-operative banks to its members the TDS Provision is applicable from 1-6-2015
*** Payment to contractor / subcontractor
- ☻A) From 01.06.2015 – If the payment is made to contractor/sub contractor in transport business, no TDS shall be deducted at source in the course of payment for plying, hiring or leasing goods carriages if the contractor provides PAN Number and such contractor owns ten or less goods carriage at any time during the previous year and furnishes a declaration to that effect. (WEF 01.06.2015)
- ☻Up to 31.05.2015– No deduction shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of a contractor during the course of business of plying, hiring or leasing goods carriages on furnishing of his Permanent Account Number, to the person paying or crediting such sum
# 194LB
- ☻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
- ☻20%
Other Important Notes :
1. Under section 192 tax is deductible from salary. The payer shall calculate salary taxable in the hands of recipient. The amount so determined is subject to tax deduction under section 192. Undersection 195, tax is deductible only if income is taxable in the hands of recipient in India. In any other case, gross payment is subject to tax deduction.
2. In Category B, tax is deductible at the above rates or the rates specified in ADT agreements entered into by the Central Government under section 90 (whichever is lower) [section 2(37A)(iii)].
3. Tax is not deductible under section 193, 194, 194A, or 194EE if the recipient makes a declaration in Form No. 15G/15H under the provisions of section 197A.
4. Under section 197 the recipient can apply the Assessing Officer in Form No. 13 to get a certificate of lower/no tax deduction. This benefit is, however, not available if tax is deductible undersection 194B, 194BB, 194E, 194EE, 194F, 194-IA, 194LB, 194LC, 196B, 196C or 196D.
5. Royalty payable by Government or an Indian concern in pursuance of an agreement made by non-resident with the Government or the Indian concern after March 31, 1976, where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to section 115A(1A) to the Indian concern or in respect of computer software referred to in the second proviso to section 115(1A), to a person resident in India.
6. Not being royalty of the nature referred to above, payable by Government or an Indian concern in pursuance of an agreement made by non-resident with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to matter included in the industrial policy, the agreement is in accordance with that policy.
7. Fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by non-resident with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to matter included in the industrial policy, the agreement is in accordance with that policy.
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