TDS Rates for FY 2015-16, TDS Certificate & Guide of TDS in India

June 15, 20150 Comments

Basic Details of TDS & TDS Rates & Applicability of the TDS :

In the below article, you will get all the latest information for TDS, A guide to what is TDS, TDS rates, TDS Certificates. Scroll down or jump to the topic from above contents menu.

What is TDS?

TDS stands for Tax Deducted at Source means collecting income tax in India. It is governed under the Indian Income Tax Act of 1961. It is managed by the Central Board for Direct Taxes (CBDT) and is part of the Department of Revenue managed by Indian Revenue Service (IRS).

The payment of these provisions shall be made after deducting prescribed percentage. IRS has a great importance while conducting tax audits. In TDS, Assessee is required to file the quarterly return to CBDT.

TDS Rates for FY 2015-16

Applicable TDS rates for FY 2015-16/AY 2016-17  currently in India are updated.

TDS RATE CHART FY 2015-16 AY 16-17
Nature of Payment Made To ResidentsCutoff (Rs.)Company / Firm / Co-operative Society / Local AuthorityIndividual / HUFIf No / Invalid PAN
Section – DescriptionRate (%)
192 – Salaries(note-10)NAAvg rates20
192A-Premature withdrawal from EPF ( wef 01.06.2015)30000NA1034.608
193 – Interest on securities101020
194 – Dividends2500101020
194A – Interest other than interest on securities – Others5000101020
194A – [email protected]( Time deposits)10000101020
194A – [email protected] (Recurring deposit)(01.06.15)10000101020
194A – Deposit in Co-op [email protected](01.06.15)10000101020
194B – Winning from Lotteries10000303030
194BB – Winnings from Horse Race5000303030
194 C – Payment to Contractors
194C- Payment to Contractor – Single Transaction300002120
194C-Payment to Contractor – Aggregate During the F.Y.750002120
194C- Contract – Transporter who has provided valid PAN (up to 31.05.2015)20
194C- Contract – Transporter not covered under 44AE (wef 01.06.2015)30000 / 750002120
194C- Contract – Transporter covered under 44AE & submit declaration on prescribed form with PAN (wef01.06.2015)20
194D – Insurance Commission20000101020
194DA Payment in respect of life insurance policy(applicable from 01.1.2014)1000002220
194E – Payment to Non-Resident Sportsmen or Sports Association202020
194EE – Payments out of deposits under NSS25002020
194F – Repurchase Units by MFs202020
194G – Commission – Lottery1000101020
194H – Commission / Brokerage5000101020
194I – Rent – Land and Building – furniture – fittings180000101020
194I – Rent – Plant / Machinery / equipment1800002220
194IA -Transfer of certain immovable property other than agriculture land(w.e.f 1-6-2013)50000001120
194J – Professional Fees30000101020
194LA – Immovable Property200000101020
194LB – Income by way of interest from infrastructure debt fund (non-resident)5520
194LB – Income by way of interest from infrastructure debt fund (non-resident)5520
Sec 194 LC – Income by way of interest by an Indian specified company to a non-resident / foreign company on foreign currency approved loan / long-term infrastructure bonds from outside India (applicable from July 1, 2012)5520
194LD – Interest on certain bonds and govt. Securities(from 01-06-2013)5520
196B – Income from units101020
196C-Income from foreign currency bonds or GDR (including long-term capital gains on transfer of such bonds) (not being dividend)101020
196D – Income of FIIs from securities202020


Basic of TDS on immovable property

Section 194IA of Income Tax Act by Freakans.

  • This provision is applicable in respect of transactions effected on or after June 1, 2013.
  • It seeks deduction of tax at source on transfer of certain immovable property other than agricultural land
  • Any person being a transferee who is liable to pay to a resident by way of consideration for transfer of any immovable property exceeding 50 Lakhs shall at the time of credit of such sum to the account of the transferor or at the time of payment in whatever manner, has to deduct tax at source at 1% only

This TDS is required to be deducted by buyer of the property, as against other TDS deduction where in, seller deducts income tax and deposit TDS with the government.

What is TDS Certificates?

In this, A deductor is required to issue a TDS certificate to the assessee within a particular time period.

He has to issue TDS Certificates within one month of the next financial year.

TDS on contractor

According to section 194C of Income Tax Act – Tax need to be deducted 1% (for individual, HUF) or 2% (for others) of payment. Such work must be in pursuance of a contract (including sub contract) between the contractor and payer. TDS is to be made at the time of credit to the account of contractor or at the time of payment in cash or by cheque or draft or by any other mode whichever is earlier

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About the Author ()

Gazala Z. is a Commerce Graduate & a PGDCA having secured first number in her college last year. She possesses a great interest in Tax related updates and her updates at will portray this fact.

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