Rate Of TDS
Who has to deduct tax?
(i) All Firms, Companies, Trusts & Societies irrespective of turnover on all type of Expenses
(ii) Individual & HUF
A: On Salaries : In All cases
B: All other expenditure : If there is tax audit in immediately preceding financial years
When TDS is to be Deduct: Expenses due or payment whichever is earlier
Nature of payment (a) |
When to be deducted(b) |
Rate of deduction*(c) |
|
Salaries (Sec 192) |
If total amount payable during the financial year after deductions is taxable. |
Tax +SC+cess has to be deducted in equal monthly instalments |
|
Interest (Sec 194A) |
If Payment made or credit made to any person exceeding Rs. 5000/- during the FY.
|
10% |
|
Contractor Payment (Sec 194C) |
If single credit/payment to contractor/sub contractor at a time exceeds Rs. 30000/- Or if aggregate credit/payment during financial year exceeds Rs. 1 Lac
|
recipient is individual/HUF 1% others - 2%
|
|
Rent ( Land and Building and furniture) (Sec 194I) |
(a) If credit/payment exceeds Rs. 240000/- during the year
(b) Any Individual/HUF responsible for the payment more than Rs.50000 per month or part of month-whether or not audit has been done in the immediately preceding previous year. |
10%
5% |
|
Professional
(Sec194J)
Technical services
|
If payment/credit exceeds RS. 30000/- in aggregate during the year
If services provided are not professional but Technical services if payment excees Rs. 30000/- in aggregate in the year.
|
10%
2%
|
|
Commission or brokerage (Sec 194H) |
If payment/credit exceeds Rs. 15000/- in aggregate during the year |
5% |
|
Purchase of Immovable Property other than Agricultural Land Sec 194-IA) |
If payment/credit exceeds Rs. 50,00,000/- |
1% |
|
Perks or benefits to any resident for carrying out any business or profession by such resident. (Sec 194R) |
If perks/ benefit exceeds Rs. 20,000/- |
10% |
|
TDS On all type of payment to resident contractors and professionals by Individual or HUF (Such individuals and HUF must not be required to get their books of accounts audited) |
Rs. 5000000/- Exceed in Financial Year |
5% |
|
In case of any person where total sales,gross receipts or turnover of any goods exceed Ten Crore Rupees during the previous Financial year (194Q) & 206C(1)(H) |
In Case of Purchase of Goods Any sum paid or payable whichever is earlier to a resident for purchase of goods exceeding Rs. 50 Lakh during the FY In case of Sale of Goods (TCS) Collection of consideration for Sale of any goods Exceeds 50 lakh during the fy. |
0.1%
0.1% |
|
Where deduction/collection is being made and deductee/supplier is Non Filer of ITR in (206AB) & (206CCA) |
whose TDS/TCS deducted / collected in previous two assessment years is more than Rs. 50000 and assessee has not filled ITR in those preceding two assessment years. |
Higher of above i}Twice the rate specified in the relevant provision of the act; OR ii} 5% |
|
Sale of Scrap,Minerals,being coal or lignite or iron ore (206C) |
On Sale amount of Scrap etc. |
1% of sale amount |
Note:
(i) If payee has not provided his PAN number TDS rate in all cases will be 20%
(ii) In case of TDS on Transportation Charges if Contractor owns 10 or less than 10 goods carriages at any time during the Financial Year, he has to give a declaration to this effect to the deductor besides he furnishes his PAN to deductor. Deductors who make payments to transporters without deducting TDS (as they have quoted PAN) will be required to intimate these PAN details to income Tax department in Form No. 26Q.
(iii) If TDS return is not filed up to specified due date, penalty @ 200 per day subject to maximum penalty amount not exceeding the deducted amount in such quarter.
(iv) Interest on TDS:
a) On late deduction: 1% per month or part thereof
b) On late Deposition: 1.5% per month or part thereof
(v) Expenses up to 30% will be disallowed If
(a) TDS is not deducted or
(b) deducted but not deposited before the due date of filling of Income Tax return U/s 139(1)