- May 25, 2016
- Posted by: Amit Mundhra CA
- Category: Income Tax
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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%
|
