TDS RATE CHART FY 2016-15 AY 2016-16 TDS DUE DATES
on Monday, August 4, 2016
Deduction of Tax at correct rate is very important for deductor and minor mistake in deduction leads to penalty in shape of Interest on late deposit and dis allowance of Expenses. We have provided the Tax deduction rates chart (TDS rate chart) for Financial year 2016-15. Minor changes has been made in TDS rates for FY 2016-15 by Finance Minister in Budget .
1. A new section 194DA has been inserted wef 01.10.2016 relating to payment in respect of life insurance policy
2. TDS u/s section194A ,the interest income payable by special purpose vehicle to a business trust has been withdrawn wef 01.10.2016.
3. TDS u/s 194LBA for income distributed u/s 115UA TDS is required to be deducted on 10% in case of resident and 5 % in case of payment to non resident.
4. Disallowance of expenses under section 40(a)(ia) has been extended to all sections of TDS .However Disallowance % has been reduced to 30% from earlier 100%. Means if tds has not been deducted and deposited on 100 Rs then only 30 Rs will be disallowed in that year. Further disallowed amount will be allowed as exp.in year in which tds has will be deducted & Paid.
Complete details Of TDS rate changes for financial year 2016-15, Tcs rate changes, Due date to deposit TDS , Due date for Form 16, Due date for Form 16A , Due date for ETDS return Form 24Q,Penalty and interest provision for late deposit of TDS ,consequences for default in filing of Etds Return , TDS rate applicable in case of Non submission of PAN ,TDS rate applicable on service tax or not , on job work or not , which rate is applicable to individual , HUF , who should deduct TDS , who should not deduct tds ,whether tds should be deducted on service tax on rent or professional services all such topics has been covered here under.
If there are any mistakes ,errors then please point out this in comment section.(Last updated 05.08.2016)
TDS Rate Chart Financial Year 2016-15
Nature of Payment Made To Residents
Threshold(Rs.)
Company / Firm / Co-operative Society / Local Authority
Individual / HUF
If No / Invalid PAN
Section - Description
Rate (%)
Rate (%)
Rate (%)
192 - Salaries
-
NA
Average rates
30
193 - Interest on securities
-
10
10
20
194 - Dividends
-
10
10
20
194A - Interest other than interest on securities - Others
5000
10
10
20
194A - Banks
10000
10
10
20
194B - Winning from Lotteries
10000
30
30
30
194BB - Winnings from Horse Race
5000
30
30
30
194 C - Payment to Contractors
- Payment to Contractor - Single Transaction
30000
2
1
20
- Payment to Contractor - Aggregate During the F.Y.
75000
2
1
20
- Contract - Transporter who has provided valid PAN
-
-
-
20
194D - Insurance Commission
20000
10
10
20
194DA-Pament of Taxable Life Insurance Policy wef 01.10.2016
100000
2
2
20
194E - Payment to Non-Resident Sportsmen or Sports Association
- Applicable up to June 30, 2016
-
10
10
20
- Applicable from July 1, 2016
-
20
20
20
194EE - Payments out of deposits under NSS
2500
20
-
20
194F - Repurchase Units by MFs
1000
20
20
20
194G - Commission - Lottery
1000
10
10
20
194H - Commission / Brokerage
5000
10
10
20
194I - Rent - Land and Building
180000
10
10
20
194I - Rent - Plant / Machinery
180000
2
2
20
194J - Professional Fees
30000
10
10
20
194LA - Immovable Property
100000
10
10
20
194LB - Income by way of interest from infrastructure debt fund (non-resident)
-
5
5
20
194LBA Income paid Under section 115UA we f 01.10.2016
Resident
-
10
10
20
Non resident
-
5
5
20
Sec 194 LC - Income by way of interest by an Indian specified company to a non-resident / foreign company on foreign currency approved loan / long-term infrastructure bonds from outside India (applicable from July 1, 2016)
-
5
5
20
195 - Other Sums
-
Average rates
-
20
196B - Income from units
10
10
20
196C-Income from foreign currency bonds or GDR (including long-term capital gains on transfer of such bonds) (not being dividend)
-
10
10
20
196D - Income of FIIs from securities
20
20
20
20
Note:
No TDS on service Tax :As per circular 01/2016 dated 13.01.2016 TDS is not applicable on service tax part if service tax is shown separately.
TDS at higher rate ie., 20% has to be deducted if the deductee does not provide PAN to the deductor.(read detail u/s 206AA)
No TDS on Goods Transport :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.(read details here No TDS on Goods Transport )
Surcharge on tax 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.
Surcharge on TDS is applicable on payment made to non resident other than company ,if payment is in excess of one crore.(10 %)
Surcharge on TDS on salary is applicable if taxable salary is more than one crore @ 10 %
In the case of Company other than Domestic Company,
(i) at the rate of two per cent. of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds one crore rupees but does not exceed ten crore rupees;
(ii) at the rate of five per cent. of such tax, where the amount or the aggregate of such amounts collected and subject to the collection exceeds ten crore rupees.
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.
Download TDS -TCS rates financial year 2016-15andabove details in PDF format
Various situations and Surcharge /Cess applicable on TDS/TCS
Payment to
payment
Surcharge
Cess
Resident
Non-corporate
salary(up to 1 crore)
No
yes(3%)
Non-corporate
salary(> I crore)
yes (10%)
yes (3%)
Non-corporate
other than salary
No
No
Corporate
other than salary
No
No
Non-Resident
Non-corporate
salary(up to 1 crore)
No
yes (3%)
Non-corporate
salary(> I crore)
Yes (10 %)
yes (3%)
Non-corporate
other than salary up to 1 Crore
No
yes (3%)
Corporate
other than salary (> 1 Crore to 10 crore)
yes(2%)
yes (3%)
Corporate
other than salary > 10 Crore
yes(5%)
yes (3%)
TDS by Individual and HUF (Non Audit) case not deductible
An Individual or a Hindu Undivided Family whose total sales, gross receipts or turnover from business or profession carried on by him does not exceeds the monetary limits(Rs.100,00,000 in case of business & Rs.25,00,000 in case of profession) under Clause (a) or (b) of Sec.44AB during the immediately preceding financial year shall not be liable to deduct tax u/s.194A,194C, 194H, 194I & 194J.So no tax is deductible by HUF/Individual in first year of operations of business even sales/Fees is more than 100/25 Lakh.
TCS (tax collection at source rates Fy 2016015)(read more details by Tax collection at source)
TCS Rates for F. Y. 2016-15
Section
Nature of Payment
F. Y. 2016-15
Individual / HUF
Other
206C
Scrap
1
1
206C
Tendu Leaves
5
5
206C
Timber obtained under a forest lease or other mode
2.5
2.5
206C
Any other forest produce not being a timber or tendu leave
2.5
2.5
206C
Alcoholic Liquor for human consumption
1
1
206C
Parking Lot, toll plaza, mining and quarrying
2
2
206C
Minerals, being coal or lignite or iron ore (applicable from July 1, 2016)
1
1
206C
Bullion if consideration (excluding any coin / article weighting 10 grams or less) exceeds Rs. 2 Lakhs or jewellery if consideration exceeds Rs. 5 Lakhs (and any amount is received in cash) (applicable from July 1, 2016)
1
1
Download TDS -TCS rates financial year 2016-15andabove details in PDF format
Due date to Deposit TDS and TCS
“Time and mode of payment to Government account of tax deducted at source or tax paid under sub section (1A) of section 192.
Rule :30.
(1) All sums deducted in accordance with the provisions of Chapter XVII‐B by an office of the Government shall be paid to the credit of the Central Government ‐
(a) on the same day where the tax is paid without production of an income‐tax challan; and
(b) on or before seven days from the end of the month in which the deduction is made or income‐tax is due under sub‐section (1A) of section 192, where tax is paid accompanied by an income‐tax challan.
Tax to be deducted/collected by Govt Office
1
Tax deposited without challan
Same day
2
Tax deposited with challan
7th of next month
3
Tax on perquisites opt to be deposited by the employer
7th of next month
(2) All sums deducted in accordance with the provisions of Chapter XVII‐B by deductors other than an office of the Government shall be paid to the credit of the Central Government ‐
(a) on or before 30th day of April where the income or amount is credited or paid in the month of March; and
(b) in any other case, on or before seven days from the end of the month in which‐ the deduction is made; or income‐tax is due under sub‐section (1A) of section 192.
Tax deducted/collected by other
1
tax deductible in March
30th April of next year
In case of TCS 7th April
2
other months & tax on perquisites opted to be deposited by employer
7th of next month
(3) Notwithstanding anything contained in sub‐rule (2), in special cases, the Assessing Officer may, with the prior approval of the Joint Commissioner, permit quarterly payment of the tax deducted under section 192 or section 194A or section 194D or section 194H for the quarters of the financial year specified to in column
(2) of the Table below by the date referred to in column (3) of the said Table:‐
SrNo
Quarter ended On
Date of payment
1
30th June
7th July
2
30the September
7th October
3
31st December
7th January
4
31st March
30Th April
Person required to file ETDS Return Filing due Dates
NOTIFICATION No. 238/2007, dated 30-8-2007.Now following person are liable to file etds/etcs return.
1. All Government department/office or
2. All companies. or
3. All person required to get his accounts audited under section 44AB in the immediately preceding financial year; or
4 The number of deductees’ records in a quarterly statement for any quarter of the immediately preceding financial year is equal to or more than fifty,
Update:Deductor can adjust excess tds deposited in one section /an assessment year with another section /assessment year
DUTIES OF TAX DEDUCTOR/COLLECTOR
To apply for Tax Deduction Account Number (TAN) in form 49B, in duplicate at the designated TIN facilitation centers of NSDL(please see www.incometaxindia.gov.in), within one month from the end of the month in which tax was deducted.
To quote TAN (10 digit reformatted TAN) in all TDS/TCS challans, certificates, statements and other correspondence.
To deduct/collect tax at the prescribed rates at the time of every credit or payment, whichever is earlier, in respect of all liable transactions.
To remit the tax deducted/collected within the prescribed due dates by using challan no. ITNS 281 by quoting the TAN and relevant section of the Income-tax Act.
To issue TDS/TCS certificate, complete in all respects, within the prescribed time in Form No.16(TDS on salaries), 16A(other TDS) 27D( TCS).
To file TDS/TCS quarterly statements within the due date.
To mention PAN of all deductees in the TDS/TCS quarterly statements.
CONSEQUENCES OF DEFAULT
Failure to deduct or remit TDS /TCS(full or part)
Interest:Interest at the rates in force (12% p.a.) from the date on which tax was deductible /collectible to the date of payment to Government Account is chargeable. The Finance Act 2010 amended interest rate wef 01.07.2010 and created a separate class of default in respect of tax deducted but not paid to levy interest at a higher rate of 1.5 per cent per month, i.e. 18 per cent p.a. as against 1 per cent p.m., i.e. 12 per cent p.a., applicable in case the tax is deducted late after the due date. The rationale behind this amendment is that the tax once deducted belongs to the government and the person withholding the same needs to be penalized by charging higher rate of interest Penalty equal to the tax that was failed to be deducted/collected or remitted is leviable.
In case of failure to remit the tax deducted/collected, rigorous imprisonment ranging from 3 months to 7 years and fine can be levied.
Failure to apply for TAN in time or Failure to quote allotted TAN or Wrong quoting of TAN :Penalty of Rs.10,000 is leviable u/s.272BB(for each failure)
Failure to issue TDS/TCS certificate in time or Failure to submit form 15H/15G in time or Failure to furnish statement of perquisites in time or Failure to file Quarterly Statements in time: For each type of failure, penalty of Rs.200/- per day for the period of default is leviable. Maximum penalty for each failure can be up to the amount of TDS/TCS.
New Section for Penalty for non submission of ETDS /ETDS return (section 271H)(applicable from 01.07.2016)
Failure to deliver statement within time prescribed u/s 200 (3) or to the proviso to sub-section (3) of section 206C may liable to penalty which shall not be less than Rs. 10,000/- but which may extend to Rs. 1,00,000/-. No penalty if payment of tax deducted or collected along with fee or interest and delivering the statement aforesaid before the expiry of 1 year from the time prescribed for delivering the such statement. However No penalty shall be imposed u/s 271H if the person proves that there was reasonable cause for the failure.(section 273B)
Assessee In default (amendment in section 201)
The Deductor will not to be treated as assessee in Default provided the resident payee has furnished his return u/s 139 and has taken into account such amount for computing income in such Return of Income and has paid the Tax Due on the income declared by him in such return of income and furnishes a certificate to this effect, duly certified by a CA, in the prescribed form. This form is yet to be notified.
However, the interest for not deducting tax would be payable from the date on which such tax was collectible till the date of furnishing of return of income by the resident payee.
The limit of passing orders under section 201(1) increased from 2 years to 6 years (retrospective amendment wef 1-04-2010)
Due Dates For ETDS returns (Form 24Q for salary and 26Q for contractors others ,27Q for Non-resident
Due date ETDS return 24Q, 26Q 27Q and Form16 ,Form 16A
Sl. No.
Quarter ending
From 01.11.2011 on wards For Govt offices
For other deductors
Etds return
Form 16A
Etds return
Form 16A
1
30th June
31st July
15th August
15th July
30th July
2
30th September
31st October
15th November
15th October
30th October
3
31st December
31st January
15th Feburary
15th January
30th January
4
31st March
15th May
30th May (31st May for form 16)
15th May
30th May (31st May for form 16)
Download Full Notification 41/2010.right click on link and select save target as or save link as as the case may be "
Issuance Of TDS certificate Form 16 and Form 16A
Tax deducted on or after 01.04.2016, it is mandatory for all type of deductors to issue quarterly form 16A (non salary tds certificate) only after downloaded the same from the TDSCPC website. Earlier this was mandatory for only companies ,Banks and co-operative societies engaged in Banking services with effect from 01.04.2011 through circular number 3/2011.
New forms 16 and 16A performa is available here
Form 16A downloaded from TDSCPC can be signed manually or can be authenticated through digital signature only.
Though this will be an increase in work load on small traders also but it is welcome step as it will reduce arbitrary demands by department due to mismatching of TDS claimed and TDS shown on form 26AS. Moreover small traders are also not small now .TDS is to be deducted by HUF and Individual only if their turnover/Receipt is during the immediately preceding year more than limit prescribed under section 44AB .Present limit for FY 2016-13 is proposed to be increased to 1 crore for business and 25 lakh for Professionals.
FY 2010-11
FY 2011-12
FY 2016-13 onwards
Download Form 16A from TDSCPC (TRACES) Web Site
Optional
Mandatory for Companies and Banks. Optional for others
Mandatory for all type of deductors
Digitally Sign Form 16A
Optional but only if downloaded from TDSCPC (TRACES) Web site
Optional but only if downloaded from TDSCPC (TRACES) Web site
Optional but only if downloaded from TDSCPC (TRACES) Web site
Manually Issue TDS Certificate(Form 16A)
All deductors can manually issue TDS Certificate
Companies and Banks cannot manually issue TDS Certificate
No deductor can issue manually TDS certificate
Manually Issue TDS Certificate(Form 16 salary)
All deductors can manually issue TDS Certificate
All deductors can manually issue TDS Certificate
Form 16(PartA) is mandatory to downloaded form TDSCPC website
Part B to be issued manually
So manually field form 16A cannot be issued for tax deducted on or after 01.04.2016.
Update (22.04.2016) Form 16 (Part-A) to be issued mandatory through download from TDSCPC website (circular 04/2016 dated 17.04.2016) salary can be issued without downloading from the TDSCPC (TRACES) site. Now you are interested in how you can download Form 16A from TDS CPC (TRACES) website
Please Note that Form 16A now(01.01.2016) shall be available through new website www.tdscpc.gov.in only .Read more from links given below
Procedure How to register at TRACES (www.tdscpc.gov.in) and
How to download Form 16A form TRACES (www.tdscpc.gov.in)
HOW TO DOWNLAOD FORM16 FROM TDSCPC WEBSITE
GENERAL INFORMATION
Deduction at lower or nil rate requires certificate u/s.197, which will take effect from the day it is issued. It cannot be used retrospectively.
If TDS/TCS certificate is lost, duplicate may be issued on a plain paper giving necessary details marking it as duplicate.
Refund can be claimed by the deductee on filing of return of income.
Even if the recipient of payment has shown it in his income-tax return and paid the taxes thereon, the deductor/collector who has failed to deduct/collect tax will be liable to pay interest and penalty.
Update:Deductor can adjust excess tds deposited in one section /an assessment year with another section /assessment year
Other Point to be Noted
TDS on Job work(194C) Tds on Job work has been relaxed read new definition u/s 194C.
TDS on Cold Storage (194C clarification)
No TDS on service tax on all section (circular -01/2016 dated 13.01.2016)
TDS on Rent (various circulars by department on tds on rent )
Do and Dont's Tax deposit of Taxes
E-payment of TDS mandatory from 01.04.2008
E-Payment Auto Filler for Tds Challan
E-Payment From Other Banks Account Allowed
TDS challan ITNS 281 In excel &
How to Fill TDS CHALLAN-ITNS 281
How To pay Income Tax/Tds Online FAQ
Nil TDS on Transporter and others to be reported in ETDS quarterly returns
1% TDS on transfer of property u/s 194IA wef 01.06.2016
TDS on rent section 194-1 brief notes, circular, notification and case laws
42 Important points related to TDS/TCS deduction and etds return filing
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tds rates for financial year 2016-16,tds rates for ay 2016-16,tds rates for fy 2016-16,tds rates for ay 2016-16 in pdf,www.tdscpc.gov.in
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