Rates of TDS for FY 2017-18

Income tax Rates

Rates for Tax Deducted at Source (TDS) (FY 2017-18 & AY 2018-19)

Following given are the rates at which tax is to be deducted at source during financial year 2017-18 (AY 2018-19).

Section Payment Type Basic Rate of TDS (excluding Surcharge, EC & SHEC) Condition(if any)
 192  Salary  At normal slab rate applicable  If estimated total income exceeds tax free limit.
 192A Payment of accumulated balance of Employees provident Fund (w.e.f 01-06-2015)  10%  If payment exceeds Rs. 50000/-
 193  Interest on Securities (like debentures whether listed or not  10%  If amount exceeds Rs. 10000/- (Rs.5000 in case of debentures)
 194  Deemed Dividend u/s 2(22)(e)  10%  If amount exceeds Rs. 2500/-
 194A  Interest other than interest on securities.  10%  If amount exceeds Rs. 5000/-(Rs. 10000/- in case of interest paid by banks)
 194B  Winning from lotteries, crossword puzzles or card games etc.  30%   If winning amount exceeds Rs. 10000/-
194BB Winning from Race horses 30% If winning amount exceeds Rs. 10000/-
194C Payment to Contractor/sub-contractor If payee is individual or HUD: 1%

other: 2%

if one payment amount exceeds Rs. 30,000/- or the total during the whole year exceeds Rs. 1,00,000/-
194D Insurance Commission If payee is resident other than company: 5%

Domestic Company: 10%

If amount exceeds Rs. 15000/-
194DA Payment in respect of Life Insurance Policy  1%  If amount exceeds Rs. 100000/-
 194E  Payment to Non-Resident Sportsmen or Sports Association  20%
 194EE  Payment in respect of deposit under National Savings scheme (NSS)  10%  If amount exceeds Rs. 2500/-
 194F  Payment on account of repurchase of units of MF or UTI  20%
 194G  Commission on sale of lottery tickets  5%  If amount exceeds Rs. 15000/-
 194H  Commission or Brokerage  5%  If amount exceeds Rs. 15000/-
 194I  Rent  Machinery-2%

land or building or furniture -10%

 If amount exceeds Rs. 180000/-
 194IA  Payment of consideration to a resident transferor for transfer of any immovable property (other than rural agricultural land)  1%  If amount exceeds Rs. 50 Lakhs.
 194IB  Payment of Rent by Individual or HUF not convered in 194I. (not subject to tax audit u/s 44AB in preceding FY)

(W.e.f. 01-06-2017)

 5%  If exceeds Threshold limit of Rs. 50,000/- per month.
194IC Payment under joint development agreement to resident individual or HUF 10% Does not cover payment in kind.
194J Payment for professional fee, technical fee, royalty, remuneration to director, not carrying any activity in relation to a business or for not sharing any know-how, copyright etc. If payee is in only business of call centre – 2%

Others- 10%

If exceeds Threshold limit of Rs. 30,000/-.
194K Income in respect of Units Omitted w.e.f 01-06-2016
194L Payment of Compensation on acquisition of Capital Asset Omitted w.e.f 01-06-2016
 194LA Payment of compensation on acquisition of certain Immovable property.  10%  If exceeds threshold limit of Rs. 250,000/-.
 194LB  Payment of interest on infrastructure debt fund to non-resident or foreign company  5%
 194LBA(1)  Payment of nature referred in 10(23FC)/(23FCA) by business trust to resident unit holders.  10%
 194LBA(2)  Payment of nature referred in 10(23FC) by business trust to non-resident or foreign company.  5%
 194LBA(3)  Payment of nature referred in 10(23FCA) by business trust to non-resident or foreign company.  30%
 194LBB  Payment in respect of units of investment fund specified in section 115UB.  10%
 194LBC Payment in respect of an investment in securitisation trust as specified in clause (d) of Explanation after section 115TCA.  Resident individual or HUF- 25%

Other resident- 30%

Non Residents other than Company- 30%

Foreign Companies- 40%

 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%
 194LD  Interest on rupee denominated bond of an Indian company or Government security payable to FII or QFI  5%
 195 various payment to non-residents. See note 5
196A  Income in respect of units of mutual funds to non-residents.  Company-10%

other than company- 20%

 No deduction is to be made under this section w.e.f. 01-04-2003.
 196B  Payment of Income from units  to an offshore fund (including LTCG on transfer of such units)  10%
 196C  Income from foreign currency bonds or GDR (including LTCG on transfer of such bonds but excluding divident)  10%
196D  Income of FIIs from securities (not being dividend, STCG or LTCG)  20%

Note:

(1) Surcharge on TDS:-

  • Surcharge not deductible at source in case of resident individual/ HUF /Firm/LLP/ AOP / BOI/Domestic Company in respect of payment of income other than salary.
  • Surcharge @ 10% (if total income exceeds Rs. 50 Lakhs but does not exceed Rs. 1 crore) or @15% (if total income exceeds Rs. 1 crore) is deductible along with TDS on Salary income.
  • In case of Non-resident & Foreign company, Surcharge is deductible along with TDS at the following rates.
    Non Residents other than company (if income exceeds Rs. 50 Lakh but not exceeds Rs. 1 Crore) 10%
    Non Residents other than company (if income exceeds Rs. 1 Crore) 15%
    Non Resident companies if income is between Rs. 1 Crore and 10 Crore 2%
    Non Resident companies if income is greater than Rs. 10 Crore 5%
    Surcharge on Co-operative Society & Firms in case of Non-Residents (if income exceeds Rs. 1 crore) 12%

(2) Education Cess & SHEC on TDS:-

  • EC & SHEC is not deductible 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% & SHEC @ 1% is deductible along with TDS on Salary income.
  • Education Cess @ 2% & SHEC @ 1% is deductible at source in case of non-residents and foreign company.

(3) As per circular no. 1/2014 dated 13-01-2014, No TDS is to be deducted on service tax component included in the payments made to residents.

(4) If PAN of deductee is not intimated to the deductor, TDS will be deducted either at the rate given in above table or 20%, whichever is higher (Sec. 206AA) But in case of section 192A (TDS on Employees Provident fund balance) TDS @ 30% is deducted if valid PAN is not available.

(5) Rate of TDS u/s 195 for various other payment to non-resident:

(a)Income in respect of investment made by a Non-resident Indian Citizen. (20%)

(b) Income by way of long-term capital gains referred to in Section 115E in case of a Non-resident Indian Citizen.(10%)

(c)Income by way of long-term capital gains referred to in section 112(1)(c)(iii).(10%)

(d) Income by way of short-term capital gains referred to in Section 111A(15%)

(e) Any other income by way of long-term capital gains [not being long-term capital gains referred to in clauses (33), (36) and (38) of Section 10](20%)

(f) Income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in Section 194LB or Section 194LC) (20%)

(g) Income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern 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 sub-section (1A) of Section 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of Section 115A of the Income-tax Act, to a person resident in India.(10%)

(h) Income by way of royalty [not being royalty of the nature referred to point g) above E] payable by Government or an Indian concern in pursuance of an agreement made by it 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 a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy.

  • agreement between 01-04-1961 to 31-03-1976 (50% for non-domestic company & 10% for other non-residents)
  • agreement after 31-03-1976(10%)

(i) Income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it 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 a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy.

  • agreement between 01-03-1964 to 31-03-1976(50% for non-domestic company & 10% for other non-residents)
  • agreement after 31-03-1976(10%)

 

(j) Any other income (40% for non-domestic company & 30% for other non-residents)

(6) Interest on late payment of TDS:

If TDS is not deducted then interst @ 1% per month or part thereof, for the period from the date on which TDS is deductible/collectible to the date on which TDS/TCS is actually deducted/collected. But if TDS is deducted but not paid then Interest @ 1.5% per month or part thereof, for the period from the date on which TDS is actually deducted/collected to the date on which such TDS/TCS is actually paid.

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