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TDS Chart
Section Applicable Rules Nature of Payment Exemption & Limit Rate of Deduction for F. Y. 2015-16 (Ref. Note 1 & Note 5) Procedure for Nil/Lower Deduction Sec. 200 Return Statement Form No./ Due Date (Ref. Note 9) (W.e.f. A.Y. 2015-16) TDS Certificate Form No./Due Date
192 Refer Note 3 21A, 21AA, 26A, 26B, 28, 28AB 30, 31, 31A 31AB, 33, 37BA Salary to any person
  1. ₹ 3,00,000 for senior citizen, ₹ 5,00,000 for very senior citizen and ₹ 2,50,000 for others after considering deduction u/ss. 16, 80C, 80CCC, 80CCB 80CCF, 80D, 80DD, 80DDB, 80E, 80GG, 80TTA and 80U and loss under the head 'Income from House Property'
  2. The employer has an option not to deduct tax on non monetary perquisites provided to employee and instead, pay it himself.
 As applicable to individual Refer Part III of 1st Schedule of Finance Act, 2015 Employee can apply to the AO in Form 13 Quarterly statement in Form No. 24Q/ 15th July, 15th Oct., 15th Jan., 15th May (for quarter ending 30/6, 30/9, 31/12 and 31/3 respectively F. 16 and 12BA/F.16AA By 31st May from the close of the financial year
193 Refer Note 3 28, 28AA, 29C, 30, 31, 31A, 31AB, 37BA Interest on Securities to any resident
  1. ₹ 5,000 for interest on debentures (to a resident individual and HUF).
  2. Interest on any Security
  3. No tax is to be deducted on interest payable • By the Government on any security
    • To LIC, GIC or any other similiar insurer
    • To a corporation esta- blished by or under a Central Act which exempt from Income Tax by virtue of any
    • On 7 year NSC
    • On any securities issued by a company in a dematerialised form listed on recognised stock exchange in India
  4. ₹ 10,000 for 8% savings (Taxable) Bonds, 2003
 10%
  1. Senior Citizen can furnish declaration in duplicate in Form 15H if the tax on the estimated income is ₹ Nil. Refer Note 2.
  2. A person other than a company or a firm can furnish declaration in duplicate in Form 15G where the aggregate income does not exceed the maximum amount not liable to tax Refer Note 2
  3. Payee can apply to the A.O. in Form 13.
 Quarterly statement in Form No. 26Q on 15th July, 15th Oct., 15th Jan., 15th May (for quarter ending 30/6, 30/9, 31/12 and 31/3 respectively Form 16A by 30/7, 30/10 30/1 and 30/5, for the quarter ending 30/6, 30/9, 31/12 and 31/3 respectively
194A Refer Notes 3, 4 28, 28AA, 29C, 30, 31, 31A, 31AB Interest (other than Interest on Securities) to resident
  1. ₹ 10,000 where payer is a banking Co. or Co-operative Society engaged in Banking Business, or in case of Time Deposits (w.e.f. 1-6-2015 including recurring deposits) with PO under a scheme notified by Central Govt. ₹ 5,000 in any other case
  2. No deduction required on following interest payments:
    1. Firm to partner
    2. On deposits with bank made before 1-7-1995
    3. Co-op. Soc. (other than a Co-op. Bank) to a member thereof or to such income credited/paid by a Co-op. Soc.
    4. Payment to UTI, LIC or any other Insurance company
    5. Payment to financial corporation established under any Central, State or Provincial Act.
    6. Central Govt. to assessees on excess tax paid
    7. Zero coupon bonds issued by scheduled bank
    8. To any Business Trust referred to in S. 10(23FC) (w.e.f. 1-10-2014), etc.
 10% Same as S. 193 above Same as S. 193 above Same as S. 193 above
194B 30, 31, 31A, 31AB Winnings from lottery & crossword puzzles including card game or other game of any sort to any person (including winning in kind) ₹ 10,000 30% All assessees Not Applicable As per S. 193 above As per S. 193 above
194BB 30, 31, 31A, 31AB Winnings from horse races to any person ₹ 5,000 30% All assessees Not Applicable As per S. 193 above As per S. 193 above
194C Refer Notes 3, 4 & 6 28, 28AA 30, 31, 31A 31AB Payment to Resident Contractors/Sub- Contractors by persons other than individual and HUF
  1. ₹ 30,000 per credit/ payment and
  2. ₹ 75,000 per Financial Year
 Cos Firms Co-op. Soc./ AOP/BOI Individual/ HUF 2% 1% Payee to apply in F.13 to the A.O. to obtain certificate As per S. 193 above As per S. 193 above
194D 28, 28AA, 30, 31, 31A, 31AB Insurance commission to Resident ₹ 20,000 Companies 10% Payee to apply in F.13 to the A.O. to obtain certificate As per S. 193 above As per S. 193 above
194DA 31, 31A, 31AB & 37BA Payment in other than the amount exempt u/s. 10(10D) in respect of u/e Ins. policy ₹ 1,00,000 20% - - -
194E 26, 30, 31, 31A, 31AB, 37A Payments to Non- resident sportsmen/ entertainer sports association Any amount 20% Not Applicable As per S. 193 above As per S. 193 above
194EE 29C, 30, 31, 31A, 31AB Payments of deposits under NSS to any person Payments to heirs exempt. In any other case less than ₹ 2,500 20% If F.15G/F.15H is furnished by a resident individual As per S. 193 above As per S. 193 above
194G 28, 28AA, 30, 31, 31A, 31AB Commission/Remu- neration on sale of lottery tickets to any person ₹ 1,000 10% Payee to apply in F.13 to the A.O. to obtain certificate As per S. 193 above As per S. 193 above
194H Refer Note 3 28, 28AA, 30, 31, 31A, 31AB Commission or Brokerage to a resident
  1. Individual & HUF – not required to deduct tax (Subject to Note 4)
  2. ₹ 5,000 p.a.
  3. No deduction for commission or brokerage payable by BSNL & MTNL to their PCO franchises
  4. No deduction for brokerage on securities or New Pension Scheme Trust [S. 10(44)]
 10% Payee to apply in F. 13 to the A.O. to obtain certificate As per S. 193 above As per S. 193 above
194-I Refer Note 3 28, 28AA 30, 31, 31A, 31AB Rent paid to any resident for Plant Machinery, Equipment, Rents paid to any resident for Land & Building
  1. Individual & HUF – not required to deduct tax (Subject to Note 4)
  2. ₹ 1,80,000 p.a.
  3. No tax deduction if payee is Government/Local Authority

No deduction for rent paid/ credited to a business trust being a REIT, in respect of any real estate asset referred to in clause 10(23FA) owned directly by such business trust

 2% 10% Payee to apply in F. 13 to the A.O. to obtain certificate As per S. 193 above As per S. 193 above
194-IA 30, 31, 31A 31AB Payment on transfer of certain immovable properties other than agricultural land
  1. Any person to a resident transferee
  2. ₹ 50,00,000 or above
  3. S. 203A not applicable
 1% Not Applicable Form 26QB within 7 days from the end of the month & by 30th April in case of March month Form 16B within 15 days from filing Form 26QB
194J Refer Note 3 28, 28AA, 30, 31, 31A, 31AB Fees for professional or technical services, Remuneration/ Commission/Fees, etc. to Directors (other than those covered u/s 192), Royalty and sum referred to in section 28(va) (i.e., non-compete & confidentiality payments) paid to a resident
  1. Individuals & HUFs are not required to deduct tax (Subject to Note 4)
  2. ₹ 30,000
 10% Payee to apply in F. 13 to the A.O. to obtain certificate As per S. 193 above As per S. 193 above
194LA 28, 28AA, 30, 31, 31A, 31AB Compensation to resident on acquisition of certain immovable property other than specified agricultural land ₹ 2,00,000 p.a. 10% Payee to apply in F. 13 to the A.O. to obtain certificate As per S. 193 above As per S. 193 above
195 Refer Note 3 26, 28, 28AA, 29B, 30, 31A, 31AB, 37A Interest or other sums (other than salary) paid to Non- residents or to foreign companies (not being dividends u/s. 115-O after 1-6-2003) - As per double taxation avoidance treaty or as per Sch. 1, Part II to the Finance Act, 2015 whichever is beneficial to the assessee
  1. Payee to apply in Form 13 to the AO to obtain certificate
  2. Payee to apply in F. 15C/15D to the A.O. to obtain certificate
  3. Payer may apply to A.O. to determine income component in payment for lower deduction
 Quarterly statement in Form No. 27Q on 15th July, 15th Oct., 15th Jan., 15th May As per S. 193 above

Notes:

  1. Surcharge is applicable at the following rates:
    Individual/HUF/AOP/BOI/Artificial juridical person/Co-op. Soc./Firm where the income or aggregate of such income exceeds ₹ 1 crore @ 12%.
    Foreign company @ 2% where such sum exceeds ₹ 1 crore but does not exceed ₹ 10 crores and 5% were such sum exceeds ₹ 10 crores.
    Domestic Co. @ 7% in case such sum exceeds ₹ 1 crore but does not exceed ₹ 10 crores @ 12% in case such sum exceeds ₹ 10 crores.
     
    Nature of Activity Salary Other than Salary i.e.; Ss. 193, 194A, 194B, 194BB, 194C, 194D, 194E, 194EE, 194G, 194H, 194-I, 194J, 194LA, 194LBA
    (a) Time of Deduction When salary is paid When income paid or credited to the account including interest “payable” or “suspense” a/c whichever is earlier.
    (b) Time of deposit of tax (where deduction is made on behalf of the Government) On same day On same day
    (c) Time of deposit of tax (where deduction is other than on behalf of Government) Within one week from the last day of the month in which the deduction is made.
    Quarterly deduction from salary on July 7, October 7, January 7 and April 30 with prior approval of AO.    		 If credited on the date on which accounts are made, within one month from the end of the month in which income is credited.
    Any other case, within one week from the end of the month in which deduction is made. Quarterly deduction from other interest, insurance commission or other commission or brokerage on July 7, October 7, January 7 and April 30 with prior approval from JC.
  2. Copies of Form Nos. 15G & 15H received by the payer have to be filed with the Principal Chief Commissioner/Chief Commissioner/ Principal Commissioner/ Commissioner within 7 days of the succeeding month. A declaration for non-deduction of tax u/s. 197A can be furnished by the assessee only if his aggregate income is less than threshold limit. Senior Citizens can file declaration if tax on their estimated total income is likely to be NIL.
  3. Consequences of delay in payment of TDS
    • If the person responsible for deducting and paying tax fails to do so, he shall be considered an assessee in default, liable to pay interest @ 1% p.m or part thereof on the amount of such tax from the date on which such tax was deductible to the date of deduction and @ 1.50% p.m. or part thereof on the amount of such tax from the date of deduction to the date of actual payment, rigorous imprisonment ranging from 3 months to 7 years and fine. The interest payment needs to be made before filing of the Quarterly Return. For Penalty please refer page 14.51.
    • Disallowance due to non-deduction:

    If tax deductible under Chapter XVII-B is not deducted during the previous year or deducted and not paid before the due date of filing the return of income 30% of relevant expenditure otherwise allowable in computing total income of the payer would be liable for disallowance u/s. 40(a)(i)/(ia). However, wherever the deduction is made in a subsequent year or the payment is made after the due date of filing the return of income, the deduction will be allowed in the year in which TDS is paid. For details see section 40(a).

  4. Applicable to individuals or a HUF, who was liable to tax audit in the immediately preceeding financial year shall be liable to deduct income-tax u/ss. 194A, 194C, 194H, 194-I & 194J. Payments made by way of fees which are exclusively for personal purposes will not attract provisions of sections 194C and 194J.
  5. With effect from 1-4-2010, in case where deductee does not furnish PAN to the deductor following consequences will arise.
    1. Tax will be deducted at the higher of rate specified in the relevant provisions, or rate in force or twenty per cent.
    2. Declaration u/s. 197A; i.e., declaration in Form 15G or 15H as the case may be are not valid
    3. Certificate of lower/nil deduction will not be issued in case of such deductee.
  6. No TDS u/s. 194C on Transport Contractors if PAN is given. However, w.e.f. 1-6-2015 this exemption is applicable to such contractors who owns ten or less goods carriages at any time during the previous year and furnishes a declaration to that effect.
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