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TDS / TCS Provisions Aplicable from 1st June 2016 for FY 2016-2017

Following is a gist of important provisions of TDS which are applicable w.e.f. 1st June, 2016 for the FY 2016-2017.

 

Section Nature of Payment Conditions for TDS deduction Rate of TDS
192 Salary Where estimated total income of the employee is likely to exceed the minimum amount chargeable to tax (i.e. Rs. 2,50,000/-) Annual tax payable by the employee is to be calculated according to applicable income tax slabs and the amount is required to be paid on a Monthly Basis
194A Interest Where interest credited or paid exceeds Rs. 5000/- 10%

 

If no valid PAN is furnished rate of deduction will be 20%

 

194C Payment to contractors / sub contractors Where amount of a particular contract exceeds Rs. 30000/- or total amount of contracts during a year exceeds Rs. 100000/- (Rs. 75000/- upto 31-05-2016) 2% – for payments to non Individuals

1%  – for payments to Individual and HUF

 

If no valid PAN is furnished rate of deduction will be 20%

 

194H Payment of Commission or Brokerate Where payment or credit during a year exceeds Rs. 15000/- (Rs. 5000/- upto 31-05-2016) 5% – w.e.f. 01-06-2016

10% – upto 31-05-2016

 

If no valid PAN is furnished rate of deduction will be 20%

 

194I Rent Where credit or payment during a year exceeds Rs. 180000/- 10% – if rent is of land, building and furniture

2% – if rent is of Plant, Machinery or Equipment

 

If no valid PAN is furnished rate of deduction will be 20%

 

194IA Payment for purchase of immovable property other than agricultural land Where the total consideration of such immovable property exceeds Rs. 50 Lacs 1%

 

If no valid PAN is furnished rate of deduction will be 20%

 

194J Fees for professional, technical service, royalty, copyright, non compete fee etc. Where the total consideration during a year exceeds Rs. 30000/- 10%

If no valid PAN is furnished rate of deduction will be 20%

 

 

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