TDS Rates FY 2017-18 (Rate Chart of TDS AY 2018-19 PDF)

Tax TDS Rate Chart for FY 2017-18 and AY 2018-19 based on recent Budget 2017 has been provided below (also in PDF). TDS refers to Tax deducted while making a payment to an Assessee Person. For Example, if a person has won Rs.1 Crore on a Game Show, a TDS of 30 lakhs will be deducted and only Rs.70 lakhs net will be paid. TDS is deducted and TDS Rates for AY 2018-19 and FY 2017-18 are provided in the Income Tax Act 1961.

The Rules and Provisions of TDS are laid down by the Central Board of Direct Taxes, also called as CBDT. One of the widely known situations where TDS is deducted is Interest Payments, Salary Payments etc. The TDS Rate Chart for FY 2017-18 will come into effect from 1st April, 2017.

Salary : TDS Rate for FY 2017-18 AY 2018-19

The TDS Rate on Salary payments has remained the same. The current rate of TDS on Salary is 10%, which is the same for the past many years.

Lottery Winnings : TDS Rate for FY 2017-18 AY 2018-19

The current threshold for TDS on Winnings from Lotteries is Rs.10,000. The TDS Rate on Lotteries for FY 2017-18 will be 30% (which happens to be the existing TDS Rate).

Interest Payments : TDS Rate for FY 2017-18 AY 2018-19

Any person not being an individual or a H.U.F. who is responsible for paying to a resident any income by way of interest other than income by way of interest on securities amounting to more than rupees Rs.5,000 or Rs.10,000 as the case may be, shall, at the time of crediting to the payee or at the time of payment or the interest, deduct tax at the prescribed rates.

The Rate of TDS is 10%, No surcharge, education cess or SHEC shall be added.

Contract Payments : TDS Rate for FY 2017-18 AY 2018-19

The annual Threshold limit of Rs. 75,000 has been extended to Rs. 1,00,000 vide Finance Act, 2016 w.e.f. 1st June, 2016.

Insurance Commission : TDS Rate for FY 2017-18 AY 2018-19

The earlier threshold limit of Rs. 20,000 has been reduced to Rs. 15,000 vide Finance Act, 2016 w.e.f. 1st June, 2016.

LIC Payments : TDS Rate for FY 2017-18 AY 2018-19

The prescribed rate of tax to be deducted at source is 2%. [The rate of 2% has been reduced to 1% vide Finance Act, 2016 w.e.f. 1st June, 2016]

Commission from Sale of Lottery Tickets : TDS Rate for FY 2017-18 AY 2018-19

Persons earning any income by way of commission, remuneration or prize etc on lottery tickets on amounts exceeding Rs.1,000 shall deduct income-tax at the rate of 10%. The rate of 10% has been reduced to 5% vide Finance Act, 2016 w.e.f. 1st June, 2016.

TDS Rate Chart for 2017-18

Section Nature of income Rate of TDS
192 Salary On the average rates on the basis of per rates for individuals. (30% if no Valid PAN)
192A Payment of accumulated balance due of Employees’ Provident Fund Scheme, 1952, to Employess which is taxable in their hand
(w.e.f 01-06-15)
10%

(30% if no Valid PAN)

193 Interest on securities*

a) any debentures or securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act;

b) any debentures issued by a company where such debentures are listed on a recognised stock exchange in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder;

c) any security of the Central or State Government;

d) interest on any other security

10%

(20% if no Valid PAN)

194 Dividend other than the dividend as referred to in Section 115O 10%

(20% if no Valid PAN)

194A Interest other than
“Interest on securities”
10%

(20% if no Valid PAN)

194B /194BB Income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort and Income by way of winnings from horse races 30%

(30% if no Valid PAN)

194C Payment to
contractors/ sub-
contractors
2% – For payments to
contractor/Sub-contractor
who is not an
Individual/HUF(20% if no Valid PAN)
1% – For payment to
contractor/Sub-contractor
who is an Individual/HUF(20% if no Valid PAN)
194D Insurance Commission 10% from 01.04.2016 to 31.05.2016

5% wef 01.06.2016)

(20% if no Valid PAN)

(Please refer Note

194DA Payment under life
insurance policy
(including Bonus)
2%

(1% wef 01.06.2016)

(20% if no Valid PAN)

194E Payment to Non-Resident Sportsmen or Sports Association 20%

(20% if no Valid PAN)

194EE Payment in respect of deposit under National Savings scheme (NSS) 20% (1-April-2016 to 31-May-2016)

10% (on or after 1-Jun-2016)

(20% if no Valid PAN)

194F Payment on account of repurchase of unit by Mutual Fund or Unit Trust of India 20%

(20% if no Valid PAN)

194G

 

Commission on sale of lottery tickets

 

10% from 01.04.2016 to 31.05.2016

5% wef 01.06.2016

(20% if no Valid PAN)

194H Payment of commission
brokerage
10% from 01.04.2016 to 31.05.2016

5% wef 01.06.2016

(20% if no Valid PAN)

194I Rent 10% – If rent is for land,
building or furniture(20% if no Valid PAN)
2% – If the rent is for
Machinery, Plant or
Equipment(20% if no Valid PAN)
194IA ((See note-8) Payment on transfer of certain immovable property other than agriculture land. 1%

(20% if no Valid PAN)

194IB Rent payable by an individual or HUF not covered u/s. 194I (W.E.F. from 01.06.2017)

 

Threshold limit Rs. 50,000/- per month. TDS to be deducted @ 5%
194IC Payment of Consideration (not being in kind) under Joint Development Agreement or other similar agreement Threshold limit Rs. Nil TDS to be deducted @ 10% (Applicable from 01.04.2017)
194J Any sum paid by way of

a) Fee for professional services,

b) Fee for technical services

c) Royalty,

d) Remuneration/fee/commission to a director or

e) For not carrying out any activity in relation to any business

f) For not sharing any know-how, patent, copyright etc.

10%

2% in case of payments received or credited to a payee, being a person engaged only in the business of operation of call center wef 01.06.2017.

(20% if no Valid PAN)

194K Income in respect of Units Omitted w.e.f 01.06.2016 as Section was non-operational.
194L Payment of Compensation on acquisition of Capital Asset Omitted w.e.f 01.06.2016 as Section was non-operational
194LA Payment on transfer of certain immovable property other than agricultural land

(Read Note-8)

10%

(20% if no Valid PAN)

194LB Payment of interest on infrastructure debt fund to non-resident or foreign company 5%#

(20% if no Valid PAN)

194LBA Certain income from units of a business trust(applicable from 01.10.2014 10% #

(20% if no Valid PAN)

194LBA 194LBA – Certain income from units of a business trust to non-resident (applicable from 01.10.2014) 5%#

(20% if no Valid PAN)

194LBB Investment fund paying an income to a unit holder [other than income which is exempt under Section 10(23FBB)] shall deduct tax therefrom (with effect from 01.06.2015). 10% from 1-April-2016 to 31-May-2016

40% For Non Residents (1-Jun-2016 to 31-Mar-2017)

30 % For Non Residents (on or after 1-Jun-2016 )

(20% or Rate Applicable whichever is higher if no Valid PAN)

194LC Payment of interest by an Indian Company or a business trust in respect of money borrowed in foreign currency under a loan agreement or by way of issue of long-term bonds (including long-term infrastructure bond) 5%#

Concessional rate of five per cent TDS on interest payment under this section will now be available in respect of borrowings made before the 1st July, 2020.

194LD Payment of interest on rupee denominated bond of an Indian Company or Government securities to a Foreign Institutional Investor or a Qualified Foreign Investor 5%
196A Foreign comp unit holder of MF 10 % In case of a Company

20% In the case of a person other than a company

196B Income from units (including long-term capital gain on transfer of such units) to an offshore fund 10%

(20% if no Valid PAN)

196C Income from foreign currency bonds or GDR (including long-term capital gains on transfer of such bonds) (not being dividend) 10%

(20% if no Valid PAN)

196D Income of FIIs from securities 20%

(20% if no Valid PAN)

Procedure to be followed for Depositing of Tax for Section 194IA  : TDS Rate for FY 2017-18 AY 2018-19

There was a confusion regarding the depositing the tax and claim of such tax deposited. Whether the deductor would have to apply for a TAN and how and when the tax is to be deposited.

As per section 194-IA, every person (even individuals) making a payment for consideration of an immovable property, not including agricultural land, will withhold tax @ 1% of the transaction amount.

As per notification no. 39/2013 dated 31 May 2013 the following things were made clear:

  1. Depositing of withholding tax
  2. Issuance of certificates for such tax
  3. Filing a return of withholding tax

The following procedure is followed:

The amount deducted under section 194-IA shall be deposited with the Central Government within 7 days from the end of the month in which the amount was deducted. For example, if amount is deducted on 15th June, then amount shall be paid to the credit of Central Government by 7th July.

TDS payment made u/s 194-IA is to be necessarily accompanied by a challan-cum-statement in Form No.26QB.

Updated: May 12, 2018 — 5:40 am

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