TDS is to be deducted on specified payment as prescribed by Income Tax Act by persons who are liable to deduct TDS. (Deducter/Payer) at prescribed rates by Income Tax Act. So It is the duty of the deductor to deduct TDS as mentioned in Income Tax Act. Each payment has its own rate of percentage to deduct TDS.
We are giving here TDS Rates for F.Y.2017-18 / A.Y. 2018-19.
TDS Rates Chart A.Y. 2018-19 F.Y. 2017-18
|Section||Nature of Payment||Threshold Limit||TDS Rate|
|192||Payment of Salary (Income Tax Slab Applicable)||Slab||Slab|
|192A||Premature withdrawal from EPF||50000||10%|
|193||Interest on Securities||10000||10%|
|194B||Winning From Lotteries||10000||30%|
|194BB||Winning from Horse Race||10000||30%|
|194C||Contractor – Single Transaction to an Individual or HUF||30000||1%|
|194C||Contractor – Single Transaction to other than an individual or a HUF||30000||2%|
|194C||Contractor – in Whole Financial Year to an Individual or HUF||100000||1%|
|194C||Contractor – Payment in Whole Financial Year to other than individual or HUF||100000||2%|
|194D||Insurance Commission (other than a company)||15000||5%|
|194D||Insurance Commission (Ind/HUF)||15000||5%|
|194D||Insurance Commission (Others)||15000||10%|
|194DA||Life Insurance Comission||100000||1%|
|194EE||National Saving Scheme 1997||2500||10%|
|194E||Non-Resident Sportsmen or Sports Association||20%|
|194F||Repurchase of Units of MF or UTI||20%|
|194G||Commission on Sale of Lottery Tickets||15000||5%|
|194H||Commission or Brokerage||15000||5%|
|194I||Rent of Plant and Machinery||180000||2%|
|194I||Rent of Land or Building or Furniture or Fitting||180000||10%|
|194IA||Transfer of Any Immovable Property (Other than rural agriculture land)||50 Lakh||1%|
|194J||Professional Fees/Technical Fees||30000||10%|
|194IB||Rent by Individual/HUF (w.e.f. 1-6-2017)||50,000 pm||5%|
|194J||Payment to Call Centre Operator (w.e.f.1-6-2017)||30000||2%|
|194LA||Compensation Immovable Property||2.5 Lakh||10%|
|194LBB||Units of Investment fund||10%|
|194LBC||Investment in securitisation trust (if payment to individual or HUF)||25%|
|194LBC||Investment in securitisation trust (if payment to any other person)||30%|
- Payee should provide his PAN to Payer so that payer can mention in TDS certificate and in TDS returns. It will help indirectly to payee to get refund easily and fast.
- But Now w.e.f 1.4.2010 payee must tell his PAN to the payer or deductor otherwise TDS will be deducted @ 20% or the applicable rate, whiever is higher. It is the duty of payer to ensure that PAN of payee should be correct by asking PAN copy.
- In transport business’s contracts, TDS liability will not arise if payee furnish his PAN.
- w.e.f. 1-7-2012 TDS exemption limit on compensation on acquisition of immovable property is Rs. 2,00,000 as given in table give below earlier it was Rs. 1 Lakh.
- Due date of TDS payment is up to 7th day from the closing date of month in which Tax has deducted and 30th April if paid or credit in the month of march otherwise Interest of late deposit will be liable @ 1.5% for each month of delay.
- Surcharge is not deductible on payment made to residents, other than salary.
- In case of non-resident, surcharge would be applicable on TDS.
See complete information on Time Limit to Deposit TDS & Issue TDS Certificate
Check more detail on Penalty on Failure or Late Payment to Deposit TDS