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Income Tax-TDS Chart

 

Section

Applicable Rules

Nature of Payment

Exemption & Limit

Rate of Deduction for F. Y. 2013-14 (Ref. Note 1 & Note 7)

Procedure for Nil/Lower Deduction

Sec. 200 Return Statement Form No./ Due Date (Ref. Note 9)(W.e.f. A.Y. 2013-14)

TDS Certificate Form No./Due Date

192

 

21A, 21AA, 26A, 26B,30, 31, 31A 31aB, 33

 

Salary to any person

 

  1.  Rs. 2,50,000 for senior citizen, Rs. 5,00,000 for very senior citizen and Rs. 2,00,000 for others after considering deduction u/ss. 16, 80C, 80CCC,  80CCF, 80D, 80DD, 80DDB, 80GG, 80E, 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, 2013

 

  

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. Rs. 5,000 for interest on (Rs. 2,500up to 30/6/2012)  debentures paid by a widely  held company (to a resident  individual and HUF).

  2. Interest on any State or Central Govt. Security

  3. No tax is to be deducted on interest payable

    • To the Government,

    • To the RBI,

    • To LIC, GIC or any other ,similiar insurer

    • To a corporation esta- blished by or under a Central Act which is exempt from Income Tax by virtue of any law

    • To a mutual fund specified u/s. 10(23D)

    • On any securities issued by a company in a dematerialized form  listed on recognized  stock exchange in India

  4. Rs. 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 Rs. 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 Note 4

 

28, 28AA,  29C, 30, 31 31A, 31AB

 

Interest (other than Interest on Securities) to resident

 

  1. Rs. 10,000 where payer is a  banking Co. or Co-operative  Society engaged in Banking  Business, or in case of  Deposits with PO under a  scheme notified by Central  Govt. Rs. 5,000 in any other  case (in case of Bank Interest  and deposits with Housing  finance companies. Limit  will apply qua each branch)

  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. to member or other 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


 

10% above

 

Same as S. 193 above

 

Same as S. 193  above

 

Same as S. 193 above

 

194B

 

  

Winnings from lottery & crossword puzzles including card  game or other game of any sort to any person (including winning in kind)

 

` 10,000 Dom.Cos., Firms

 

30%

 

Not permissible

 

As per S. 193 above

 

As per S. 193 above

 

194BB

 

30, 31, 31A, 31AB 30, 31, 31A,31AB

 

Winnings from horse races to any person

 

`5,000

 

As per S. 194B above

 

Not permissible

 

As per S. 193  above

 

As per S. 193 above

 

194C  Refer Notes 3,  4 & 8

 

28, 28AA 30, 31, 31A31AB

 

Payment to Resident Contractors/Sub- Contractors by persons other thanindividual and HUF

 

(i) ` 30,000 per credit/ payment and

(ii) ` 75,000 per Financial Year

 

Cos. Firms 2% Co-op. Soc./ AOP/BOI Individual/ 1% HUF

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

 

194E

 

26, 30, 31,  31A, 31AB 37A

 

Payments to Non- resident sportsmen/ entertainer sports association

 

 

Not applicable

20%

 

Not permissible

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 Rs. 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

 

Rs. 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. Rs. 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

 

  1. Individual & HUF – not required to deduct tax  (Subject to Note 4)

  2. Rs. 1,80,000 p.a.

  3. No tax deduction if payee is Government/Local Authority

 

2%

 

Payee to apply in F. 13 to the A.O. to obtain certificate

 

As per S. 193 above

 

As per S. 193 above

 

Rents paid to any resident for Land & Building

 

  

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.  Rs. 50,00,000 or above

  3. S. 203A not applicable

 

1%

 

Not permissible

 

As per S. 193 above

 

As per S. 193 above

 

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. Rs. 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

 

 Rs. 2,00,000 p.a.(Rs. 1,00,000 up to 30-6-2012)

 

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. 55-O after 1-6-2003)

—

 

As per double taxation  avoidance treaty or as   per Sch. 1, Part II to  the Finance Act, 2013 whichever is beneficial to the assessee

 

  1. Payee to apply in from 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 (See note 7)

 

As per S. 193 above

 

Notes:

  1. Surcharge is applicable in the case of foreign companies @ 2% if sum exceeds Rs. 1 crore, but do not exceed Rs. 10 crores and @ 5% of the sum exceeds Rs. 10 crores. Further, in case of non-residents (Other than foreign company) surcharge of 10% is applicable in case the sum exceeds Rs. 1 crore. Education Cess (2%) and secondary and higher education cess (1%) are applicable only in case of TDS in case of non-residents, foreign companies and on salary paid to residents.

Nature of Activity Salary Other than Salary i.e.; Ss. 193, 194A, 194C, 194D, 194E, 194G, 194H, 194-I, 194-IA, 194J, 194JA, 194LA
(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 AO. 

  1.  Copies of Form Nos. 15G, 15H &15I received by the payer have to be filed with the Chief 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.

  2. 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 @ 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 click here

• Disallowance due to non-deduction:

    If tax deductible u/ss. 193, 194A, 194C, 194H, 194I, 194J and 195 is not deducted during the previous year or deducted and not paid before the due date of filing the return of income, the 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).

  1. An individual 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.

  2. Under Rule 31A where:

      3. a) the deductor is an office of Government; or

      b) the deductor is a company; or

      c) the deductor is a person required to get his accounts audited under section 44AB in the immediately preceding financial year; or

      d) the number of deductees’ records in a quarterly statement for any quarter of the immediately preceding financial year is equal to or more than twenty,

      the person responsible for the deducting tax at source, and the principal officer in the case of a company shall deliver or cause to be delivered such quarterly statements on computer media (3.5" / 1.44 MB floppy diskette or CD-ROM of 650 MB capacity) along with Form 27A in paper format. In the case of other deductors, filing such returns on computer media is optional.
       

  3. As per section 199, CBDT has been given the power to prescribe rules for the assessment year for which the credit of tax may be given and the manner in which such credit shall be given. Vide CBDT Press Release No. 402/92/2006-MC (27 of 2010) dt. 2-6-2010 CBDT has amended rules for allowing tax credit claimed in the return w.e.f. 1-4-2010. The forms for TDS certificate have been revised to include the receipt number of TDS return filed by the deductor. The TAN of the deductor, PAN of the deductee and receipt number of TDS return filed by deductor will form unique identification for tax credit

  4. With effect from 1-4-2010, in case where deductee does not furnish PAN to the deductor following consequences will arise.

    (i) Tax will be deducted at the higher of rate specified in the relevant provisions, or rate in force or twenty per cent.

    (ii) Declaration u/s. 197A; i.e., declaration in Form 15G or 15H as the case may be are not valid

    (iii) Certificate of lower/nil deduction will not be issued in case of such deductee.
     

  5. No TDS u/s. 194C on Transport Contractors if PAN is given.
    For TDS Jurisdiction click here.

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