when TDS is applicable and to whom it applies?

Question

When to deduct TDS at what rate and to whom

Answer 1

TDS is applicable to all when it exceeds the amt mention by the incometax from time to time. pl. consult the auditor

Answer 2

TDS is deductible when making a payment or giving a credit to the vendor in your books of accounts. Check the payments on which TDS has to be deducted form the website - incometaxindia.gov.in. Section 191 to 206 of the Income Tax Act, 1961 deal with TDS issues

Answer 3

TDS is deductable on interest income paid by banks and other financial institutions in respect of term deposits received by them if the interest on the deposit exceeds Rs5000-during the financial year.If the depositor is not an assessee and is not taxable TDS may not be deducted if Form 15 G is filed in duplicate.If the depsitor is an assesse having PAN number,he can show the income and pay taxes through return,in which case also TDS may not be deducted.TDS is payable at the rate of 20% on interest income.

Answer 4

Every person who makes rent,Interest, contract-related payments should deduct TDS if single pmt exceeds Rs.20000 or Pmt exceeds Rs.50000 in the aggregate during the previous year

Answer 5

TDS or Tax deducted at Source is applicable to all those who have to pay taxes and whose income is equal to or greater than a predecided annual income

Answer 6

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. The Rates of TDS for F.Y. 2016-2017 or A.Y. 2017-18 are given below.

TDS Rates (F.Y.2016-17 – A.Y.2017-18)

The following rates applicable for F.Y. 2016-17/A.Y.2017-18 includes all changes w.e.f. 1-6-2016 along with threshold limit and rates having no PAN.

192A – Premature Withdrawal from Employees Provident Fund

Threshold Limit – Rs. 30,000 (Old)/Rs. 50, 000 (New)e.f. 1-6-2016
TDS Rate (Individual & HUF): N/A
TDS Rate (Others): 10%
TDS Rate if No PAN: 20%
193 – Interest on Securities

Threshold Limit – N/A
TDS Rate (Individual & HUF): 10%
TDS Rate (Others): 10%
TDS Rate if No PAN: 20%
194 – Dividends other than dividends as referred to in section 115-O

Threshold Limit – Rs. 2500
TDS Rate (Individual & HUF): 10%
TDS Rate (Others): 10%
TDS Rate if No PAN: 20%
194A – Interest other than interest on securities

Threshold Limit – Rs. 5000
TDS Rate (Individual & HUF): 10%
TDS Rate (Others): 10%
TDS Rate if No PAN: 20%
194A – Banks (Time Deposits/Recurring Deposit/Deposit in Co-op Banks)

Threshold Limit – Rs. 10000
TDS Rate (Individual & HUF): 10%
TDS Rate (Others): 10%
TDS Rate if No PAN: 20%
194B – Winning from Lotteries

Threshold Limit – Rs. 10,000/-
TDS Rate (Individual & HUF): 30%
TDS Rate (Others): 30%
TDS Rate if No PAN: 30%
194BB – Winning from Horse Race

Threshold Limit – Rs. 5000/- (Old) /Rs. 10000/-(New) e.f.1-6-2016
TDS Rate (Individual & HUF): 30%
TDS Rate (Others): 30%
TDS Rate if No PAN: 30%
194C – Payment to Contractor (Single Transaction)

Threshold Limit – Rs. 30,000/-
TDS Rate (Individual & HUF): 1%
TDS Rate (Others): 2%
TDS Rate if No PAN: 20%
194C – Payment to Contractor (Aggregate amount in Financial Year)

Threshold Limit – 75,000/- (Old)/ Rs. 1,00,000/- New Limit w.e.f.1-6-2016
TDS Rate (Individual & HUF): 1%
TDS Rate (Others): 2%
TDS Rate if No PAN: 20%
194C – Payment to Contractor (Transport not covered under 44AE)

Threshold Limit – 30,000/Rs. 75000
TDS Rate (Individual & HUF): 1%
TDS Rate (Others): 2%
TDS Rate if No PAN: 20%
194D – Insurance Commission

Threshold Limit – 20,000
TDS Rate (Individual & HUF): 10%
TDS Rate (Others): 10%
TDS Rate if No PAN: 20%
194DA – Payment in respect of life insurance policy w.e.f. 1-6-2016)

Threshold Limit – 1,00,000
TDS Rate (Individual & HUF): 1% (New) / 2% (Old)
TDS Rate (Others): 1% (New) / 2% (Old)
TDS Rate if No PAN: 20%
194E – Payment to Non-Resident Sportsmen or Sports Association

Threshold Limit – N/A
TDS Rate (Individual & HUF): 20%
TDS Rate (Others): 20%
TDS Rate if No PAN: 20%
194EE – Payment out of deposits under NSS (New rate applicable from 1.6.2016)

Threshold Limit – 2500 (w.e.f 1-6-2016)
TDS Rate (Individual & HUF): 10% (New) / 20% (Old)
TDS Rate (Others): 10% (New) / 20% (Old)
TDS Rate if No PAN: 20%
194F– Repurchase Units by MFs

Threshold Limit – N/A
TDS Rate (Individual & HUF): 20%
TDS Rate (Others): 20%
TDS Rate if No PAN: 20%
194G– Commission – Lottery (New Percentage and Limit applicable from 1-6-2016)

Threshold Limit – 15000 (New) / Rs.10000 (Old)
TDS Rate (Individual & HUF): 5% (New) / 10% (Old)
TDS Rate (Others): 5% (New) / 10% (Old)
TDS Rate if No PAN: 20%
194H– Commission/Brokerage

Threshold Limit – 5000
TDS Rate (Individual & HUF): 5% (New) / 10% (Old)
TDS Rate (Others): 5% (New) / 10% (Old)
TDS Rate if No PAN: 20%
194I – Rent – Land and Building – Furniture – Fittings

Threshold Limit – 1,80,000
TDS Rate (Individual & HUF): 10%
TDS Rate (Others): 10%
TDS Rate if No PAN: 20%
194IA – Transfer of Certain Immovable property other than agriculture land

Threshold Limit – 5,00,000
TDS Rate (Individual & HUF): 1%
TDS Rate (Others): 1%
TDS Rate if No PAN: 20%
194J – Professional Fees




Threshold Limit – 30,000
TDS Rate (Individual & HUF): 10%
TDS Rate (Others): 10%
TDS Rate if No PAN: 20%
194LA – Immovable Property (new limit applicable from 1.6.2016)

Threshold Limit – 2,50,000 (New)/Rs.2,00,000 (Old)
TDS Rate (Individual & HUF): 10%
TDS Rate (Others): 10%
TDS Rate if No PAN: 20%
194LB – Income by way of interest from infrastructre debt fund (Non-resident)

Threshold Limit – N/A
TDS Rate (Individual & HUF): 5%
TDS Rate (Others): 5%
TDS Rate if No PAN: 20%
194LBB – Income in respect of investment in Securtisation trust (New Section)

Threshold Limit – N/A
TDS Rate (Individual & HUF): 25%
TDS Rate (Others): 30%
TDS Rate if No PAN: 30%
194LC – Income by way of indian compay to a non-resident/foreign company on foreign currency approved loan/long-term infrastructure bonds from outside India

Threshold Limit – N/A
TDS Rate (Individual & HUF): 5%
TDS Rate (Others): 5%
TDS Rate if No PAN: 20%
194LD – Interest on certain bonds and govt. securities

Threshold Limit – N/A
TDS Rate (Individual & HUF): 5%
TDS Rate (Others): 5%
TDS Rate if No PAN: 20%
194B– Income from unites

Threshold Limit – N/A
TDS Rate (Individual & HUF): 10%
TDS Rate (Others): 10%
TDS Rate if No PAN: 20%
194C– Income from foreign currency bonds or GDR (including long-term capital gains on transfer of such bonds) (not being dividends)

Threshold Limit – N/A
TDS Rate (Individual & HUF): 10%
TDS Rate (Others): 10%
TDS Rate if No PAN: 20%
194D– Income of FIIs from secruities

Threshold Limit – N/A
TDS Rate (Individual & HUF): 20%
TDS Rate (Others): 20%
TDS Rate if No PAN: 20%
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 given in Income Tax Act. Each payment has its own rate of percentage to deduct TDS.

Every deductor need to deduct TDS as prescribed in Income Tax Act (not more than that and not lower than that). No doubt, there is no penalty to deduct more or wrongly deduction of TDS. However, deductor will issue TDS certificate (Form 16/Form 16A) as per actual deduction. The payee should claim the refund as per TDS certificate whether is wrongly deduction or higher deduction as the case may be.

However, TDS can be adjusted against any other payment made or credited if TDS has been wrongly deducted from a payment on which there is no liability to deduct TDS. However, the penalty for non-deposit of TDS will be imposed by Income Tax Department.

So TDS rates plays very important part for payer and payee to get easily and timely income tax refund.

Important Notes

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

Answer 7

whether tds applicable for drawing ac

Answer 8

i am not covered under tax audit is i am liable to deduct tds

Answer 9

(Rates for individuals)

Nature of PaymentIT
Sec. 192 - Salary to a resident / non-resident [see Note 1]
Sec. 193 - Interest on securities to a resident -
a. interest on debentures or securities(other than a security of the Central or a State Govn.) for money issued by or on behalf of a local authority or a statutory corporation or listed debentures of a company10
Sec. 193 - Interest on securities to a resident -
b. any other interest on securities (including interest on nonlisted debentures but excluding interest on Govn. securities mentioned in proviso to section 193) 20
Sec. 194 - Dividend to a resident -
a. deemed dividend under Section 2(22)(e)
20
Sec. 194 - Dividend to a resident -
b. any other dividend
NIL
Sec. 194A - Interest other than interest on securities to a resident10
Sec. 194B - Winnings from lottery or crossword puzzle or card game of any sort to a resident/non-resident30
Sec. 194BB - Winnings from horse races to a resident/non-resident30
Sec. 194C - Payment to a resident contractor/sub-contractor -
a. payment to a contractor (in the case of advertising contracts)
1
Sec. 194C - Payment to a resident contractor/sub-contractor -
b. payment to a contractor (other than an advertising contract)
2
Sec. 194C - Payment to a resident contractor/sub-contractor -
c. payment to a sub-contractor
1
Sec. 194D - Insurance commission to a resident 10
Sec. 194E - payment to a non-resident sportsman or sports association 10
Sec.194EE - payment in respect of deposits under National Savings Scheme, 1987 to a resident / non-resident20
Sec. 194F - payment on account of repurchase of units of MF or UTI to a resident / non-resident20
Sec. 194G - Commission on sale of lottery tickets to a resident / non-resident10
Sec. 194H - Commission or brokerage to a resident 5
Sec. 194I - Rent to a resident
a. rent to an individual or a Hindu Undivided Family
15
Sec. 194I - Rent to a resident
b. rent to a person other than an individual or a Hindu Undivided Family
20
Sec. 194J - Fees for professional or technical services to a resident5
Sec. 194LA - payment of compensation to a resident on acquisition of certain immovable property -
a. till September 30,2004NIL
Sec. 194LA - payment of compensation to a resident on acquisition of certain immovable property -
b. from October 1,2004 onwards10
Sec. 195 - payment of other sum to a non-resident [See Note 2] -
a. income from foreign exchange assets payable to an Indian Citizen
20
Sec. 195 - payment of other sum to a non-resident [See Note 2] -
b. income by way of long-term capital gains referred to in section 115E
10
Sec. 195 - payment of other sum to a non-resident [See Note 2] -
c. other long-term capital gains [not being covered by section 10(33), 10(36), and 10(38)]
20
Sec. 195 - payment of other sum to a non-resident [See Note 2] -
d. income by way of interest payable by Govn./ Indian concern on money borrowed or debt incurred by Govn. or Indian concern in foreign currency
20
Sec. 195 - payment of other sum to a non-resident [See Note 2] -
e. royalty payable by Government or an Indian concern in pursuance of an agreement made by non-resident with the Govn. or the Indian concern after March 31,1976, where such royalty is in consideration for the transfer of all or any rights(including the granting of a license) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of Section 115A to the Indian concern or in respect of computer software referred to in the second proviso to section 115A(1A), to a person resident in India -
i. where the agreement is made before June 1,1997
ii. where the agreement is made after May 31,199730
30
Sec. 195 - payment of other sum to a non-resident [See Note 2] -
f. royalty [ not being royalty of the Nature referred to in (e)] payable by Government or an Indian concern in pursuance of an agreement made by non-resident with the Govn. 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 matter included in the industrial policy, the agreement is in accordance with that policy -
i. where the agreement is made after March 31,1961 but before April 1,1976
ii. where the agreement is made after March 31,1976 but before June 1,1997
iii. where the agreement is made after May 31, 199730

30

30
Sec. 195 - payment of other sum to a non-resident [See Note 2] -
g. fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by non-resident with the Govn. or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Govn. or where it relates to matter included in the industrial policy, the agreement is in accordance with that policy -
i. where the agreement is made after February 29,1964 but before April 1976
ii. where the agreement is made after March 31,1976 but before June 1,1997
iii. where the agreement is made after May 31,199730

30

30
Sec. 195 - payment of other sum to a non-resident [See Note 2] -
h. any other income
30
Sec. 196B - Income from units (including long-term capital gains on transfer of such units) to an offshore fund10
Sec. 196C - Income from foreign currency bonds or GDR (including long-term capital gains on transfer of such bonds)(not being dividend)10
Sec. 196D - Income of Foreign Institutional Investors from securities (not being dividend, short-term or long-term capital gain)20

"Surcharge if any, + Education cess to be paid additionally"
"The above rates are for individuals -for others see following website"

Source:http://incometaxindia.gov.in/itinformati...