TDS Rates Chart For Financial Year 2017 – 2018
Tax Deducted at Source or TDS is referred to a type of tax where an individual is liable to deduct tax for services rendered. The tax deducted from the total payment amount goes to the government for various types of activities such as infrastructure development, defence, development, etc. Depending on the type of service, a certain type of tax (TDS) is levied that the payee is expected to deduct. If the individual has deducted more than the required tax amount, he/she will be eligible for a TDS Refund. The individual will require filing their TDS Return in order to receive the refund amount. TDS can be collected on a regular, periodic, or occasional basis, it is applicable to salary, interest, commission, fee, etc.
TDS Rate on Salary :
Any employer has the authority to deduct tax at source while making the actual payment to the employee. The employers deduct tax from salaries only at the time of payment. TDS is deducted if the total income of the employee is taxable. TDS will not be deducted if your total income is Rs. 2, 50,000. This amount is applicable for men and women below the age of 60 years. Normally, the TDS deduction rate on salary ranges from 5% to 30%.
The following chart contains the TDS amount applicable to each type of payment :
TDS Rate Chart for Persons Resident in India for FY 2017-2018
| Particulars | TDS Rates (in %) |
|---|---|
| Section 192: Payment of salary | According to Income Slab as specified above |
|
Section 193: Interest on securities: a) any securities or debentures for money provided by or on behalf of any corporation which is set up by a Central, State, or Provincial Act, or issued by a local authority b) any debentures which are provided by a company wherein the debentures are listed on a acknowledged stock exchange adhering to the norms of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any other rules made thereunder c) any security of the State or Central Government d) Interest on any other security |
10 |
|
Section 194: Dividend other than the dividend as mentioned in Section 115-O |
10 |
|
Section 194A: Income earned through interest other than "Interest on securities" Interest up to Rs.50,000 that is earned by senior citizens on the following:
|
10 |
|
Section 194B: Income earned through winnings from lotteries, card games, crossword puzzles, and/or any other game of any type |
30 |
|
Section 194BB: Income earned through winnings from horse races |
30 |
|
Section 194C: Payment to contractor/sub-contractor: a) HUF/Individuals |
1 |
|
Section 194C: Payment to contractor/sub-contractor: b) Others |
2 |
|
Section 194EE: Payment made towards any deposit under National Savings Scheme (NSS) |
10 (w.e.f. 1 June 2016) [20% till 31 May 2016] |
|
Section 194F: Payment made towards the repurchase of unit(s) by Mutual Fund or Unit Trust of India |
20 |
|
Section 194G: Income from commission and other proceedings earned through lottery tickets sales |
5 (w.e.f. 1 June 2016) [10% till 31 May 2016] |
|
Section 194H: Brokerage or commission |
5 (w.e.f. 1 June 2016) [10% till 31 May 2016] |
|
Section 194-I: Rent paid for: a) Plant and Machinery |
2 |
|
Section 194-I: Rent paid for: b) Building or land or furniture or fitting |
10 |
|
Section 194J: Any sum that is paid through the following: a) Royalty b) Fee for professional services c) For not sharing any know-how, patent, copyright etc. d) Fee for technical services e) Remuneration/commission/fee to a director or f) For not performing any activity that is associated to any business |
10 |
| Section 194LA: Payment of compensation on acquiring some particular immovable property | 10 |
| Section 194LBA: A particular amount of income which is distributed by the business trust among its unitholders | 10 |
| Any other type of income | 10 |
TDS Rate Chart for Persons who are Not Resident in India (NRI) for FY 2017-2018
| Particulars | TDS Rates (in %) |
|---|---|
| Section 194B: Income earned through winnings from lotteries, card games, crossword puzzles, and/or any other game of any type | 30 |
| Section 194BB: Income earned through winnings from horse races | 30 |
| Section 194E: Payment made towards a non-resident sportsman and/or sports association | 20 |
| Section 194EE: Payment made towards any deposit under National Savings Scheme (NSS) | 10 (w.e.f. 1 June 2016) [20% till 31 May 2016] |
| Section 194F: Payment made towards the repurchase of unit(s) by Mutual Fund or Unit Trust of India | 20 |
| Section 194G: Income from commission and other proceedings earned on the sale of lottery tickets | 5 (w.e.f. 1 June 2016) [10% till 31 May 2016] |
| Section 194LB: Payment made towards interest on infrastructure debt fund | 5 (w.e.f. 1 June 2016) [10% till 31 May 2016] |
| Section 194LBA: Some particular income which is given out by a business trust among its unitholders | 5 |
| Section 194LC: Payment made towards interest by an Indian Company or business organisation in relation to foreign currency borrowed under an agreement of loan or via the issuance of long-term bonds | 5 |
Section 194LD:
|
5 |
| Section 195: Payment of any other sum to a Non-resident: a) Income arising out of investments made by a Non-resident Indian (NRI) citizen | 20 |
| Section 195: Payment of any other sum to a Non-resident: b) Income arising out of short-term capital gains as per the recommendations of Section 111A | 15 |
| Section 195: Payment of any other sum to a Non-resident: c) Income arising in relation to long-term capital gains as per the reference of Section 115E in case of Non-resident Indian (NRI) citizen | 10 |
| Section 195: Payment of any other sum to a Non-resident: d) Income earned in terms of fees which is payable by the Government or an Indian organisation for technical services, subject to certain conditions | 10 |
| Section 195: Payment of any other sum to a Non-resident: e) Income arising out of long-term capital gains as per the recommendations of sub-clause (iii) of clause (c) of sub-section (1) of Section 193 | 10 |
| Section 195: Payment of any other sum to a Non-resident: f) Income arising out of royalty which is payable by the Government or an Indian organisation | 10 |
| Section 195: Payment of any other sum to a Non-resident: g) Any other income arising out of long-term capital gains except for long-term capital gains as per the recommendation of clauses (33), (36), and (38) of Section 10 | 20 |
| Section 195: Payment of any other sum to a Non-resident: h) Income arising out of royalty which is payable by the Government or an Indian organisation [not of the nature which is referred to in the sub-item (b)(i)(F)] | 10 |
| Section 195: Payment of any other sum to a Non-resident: i) Income arising out of interest which is payable by the Government or an Indian organisation on debt incurred or money borrowed by them | 20 |
| Section 195: Payment of any other sum to a Non-resident: j) Income arising from any other source | 30 |
| Section 196B: Income arising from units to an offshore fund | 10 |
| Section 196C: Income arising out of GDR or foreign currency bonds of an Indian company | 10 |
| Section 196D: Income of foreign institutional investors from securities | 20 |
TDS Rate Chart for Domestic Company for FY 2017-2018
| Particulars | TDS Rates (in %) |
|---|---|
| Section 193:
Interest on securities: a) any securities or debentures for money offered by or on behalf of any corporation which is set up by a Central, State or Provincial Act, or issued by a local authority: b) any debentures which are issued by a company wherein the debentures are listed on a recognized stock exchange adhering to the norms of the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder: c) any security of the State or Central Government: d) Interest on any other security: |
10 |
| Section 194: Dividend | 10 |
| Section 194A: Income through interest other than "Interest on securities" | 10 |
| Section 194B: Income earned through winnings from lotteries, card games, crossword puzzles, and/or any other game of any type | 30 |
| Section 194BB: Income earned through winnings from horse races | 30 |
| Section 194C: Payment to contractor/sub-contractor: a) HUF/Individuals | 1 |
| Section 194C: Payment to contractor/sub-contractor: b) Others | 2 |
| Section 194D: Insurance commission | 10 |
| Section 194DA: Payment made towards life insurance policy | 1 (w.e.f. 1 June 2016) [2% till 31 May 2016] |
| Section 194EE: Payment made towards any deposit under National Savings Scheme (NSS) | 10 (w.e.f. 1 June 2016) [20% till 31 May 2016] |
| Section 194F: Payment made towards the repurchase of unit(s) by Mutual Fund or Unit Trust of India | 20 |
| Section 194G: Income from commission and other proceedings earned on the sale of lottery tickets | 10 (w.e.f. 1 June 2016) [10% till 31 May 2016] |
| Section 194H: Brokerage or commission | 5 (w.e.f. 1 June 2016) [10% till 31 May 2016] |
| Section 194-I: Rent paid for: a) Plant & Machinery | 2 |
| Section 194-I: Rent paid for: b) Building or land or fitting or furniture | 10 |
| Section 194LA: Payment of compensation on acquisition of some particular immovable property | 10 |
| Section 194LBA: A particular amount of income which is distributed by the business trust among its unitholders | 10 |
| Any Other Income | 10 |
TDS Rate Chart for a company other than Domestic Company for FY 2017-2018
| Particulars | TDS Rates (in %) |
|---|---|
| Section 194B: Income earned through winnings from lotteries, card games, crossword puzzles, and/or any other game of any type | 30 |
| Section 194BB: Income earned through winnings from horse races | 30 |
| Section 194E: Payment made towards a non-resident sportsman and/or sports association | 20 |
| Section 194G: Income from commission and other proceedings earned on the sale of lottery tickets | 5 |
| Section 194LB: Payment of compensation on acquisition of some particular immovable property | 5 |
| Section 194LBA: Some particular income which is distributed by a business trust among its unitholders | 5 |
| Section 194LC: Payment made towards interest by an Indian Company or business organisation in relation to foreign currency borrowed under an agreement of loan or via the issuance of long-term bonds | 5 |
| Section 194LD: Payment made towards interest by an Indian Company or business organisation in relation to foreign currency borrowed under an agreement of loan or via the issuance of long-term bonds | 5 |
| Section 195: Payment of any other amount to a Non-resident: a) Income arising out of investments made by a Non-resident Indian (NRI) citizen | 20 |
| Section 195: Payment of any other amount to a Non-resident: b) Income arising out of short-term capital gains as per the recommendations of Section 111A | 15 |
| Section 195: Payment of any other amount to a Non-resident: c) Income arising in relation to long-term capital gains as per the reference of Section 115E in case of Non-resident Indian (NRI) citizen | 10 |
| Section 195: Payment of any other amount to a Non-resident: d) Income earned in terms of fees which is payable by the Government or an Indian organisation for technical services, subject to certain conditions | 10 |
| Section 195: Payment of any other amount to a Non-resident: e) Income arising out of long-term capital gains as per the recommendations of sub-clause (iii) of clause (c) of sub-section (1) of Section 193 | 10 |
| Section 195: Payment of any other amount to a Non-resident: f) Income arising out of royalty which is payable by the Government or an Indian organisation | 10 |
| Section 195: Payment of any other amount to a Non-resident: g) Any other type of income arising out of long-term capital gains except for long-term capital gains as per the recommendation of clauses (33), (36), and (38) of Section 10. | 20 |
| Section 195: Payment of any other amount to a Non-resident: h) Income arising out of royalty which is payable by the Government or an Indian organisation [not of the nature which is referred to in the sub-item (b)(i)(F)] | 10 |
| Section 195: Payment of any other amount to a Non-resident: i) Income arising out of interest which is payable by the Government or an Indian organisation on debt incurred or money borrowed by them | 20 |
| Section 195: Payment of any other amount to a Non-resident: j) Income arising from any other source | 30 |
| Section 196B: Income arising from units to an offshore fund | 10 |
| Section 196C: Income arising out of GDR or foreign currency bonds of an Indian company | 10 |
| Section 196D: Income of foreign institutional investors from securities | 20 |
The TDS on income/salary is calculated on an annual basis. The TDS calculation is based on various types of slabs as indicated in the Budget 2017 – 2018. The following table provides the details of income slab with their applicable tax amount in percentage -
Income Tax Slabs in India for FY 2017 - 2018
Tax applicable for individuals below 60 years
| Annual Income | Tax Rates | Education Cess | Secondary and Higher Education Cess |
|---|---|---|---|
| Up to Rs.2,50,000 | Nil | Nil | Nil |
| Rs.2,50,001-Rs.5,00,000 | 5% | 2% of income tax | 1% of income tax |
| Rs.5,00,001-Rs.10,00,000 | Rs.12,500 + 20% | 2% of income tax | 1% of income tax |
| Above Rs.10,00,000 | Rs.1,12,500 + 30% | 2% of income tax | 1% of income tax |
Tax applicable for individuals over 60 years and under 80 years
| Annual Income | Tax Rates | Education Cess | Secondary and Higher Education Cess |
|---|---|---|---|
| Up to Rs.3,00,000 | Nil | Nil | Nil |
| Rs.3,00,001-Rs.5,00,000 | 5% | 2% of income tax | 1% of income tax |
| Rs.5,00,001-Rs.10,00,000 | Rs.10,00 + 20% | 2% of income tax | 1% of income tax |
| Above Rs.10,00,000 | Rs.1,10,000 + 30% | 2% of income tax | 1% of income tax |
Tax applicable for individuals over 80 years and above
| Annual Income | Tax Rates | Education Cess | Secondary and Higher Education Cess |
|---|---|---|---|
| Up to Rs.5,00,000 | Nil | Nil | Nil |
| Rs.5,00,001-Rs.10,00,000 | 20% | 2% of income tax | 1% of income tax |
| Above Rs.10,00,000 Rs.1,12,500 | Rs.1,00,000 + 30% | 2% of income tax | 1% of income tax |
Frequently Asked Questions
- What is a TDS Certificate? A TDS certificate is a document that is issued by a deductor to a deductee. The two kinds of TDS certificates are Form 16 and Form 16A.
- What is Form 16? Form 16 is issued by employers to employees. It contains details regarding the tax deducted over the course of the year.
- What is Form 16A? Form 16A certifies the amount deducted at source, the kind of payments and the payments that have been deposited with the IT Department. It is issued for payments apart from salary, such as rent, professional charges, bank interest payments, etc.
- What are the TDS rates applicable to interest on securities? The TDS rate for interest on securities is 10%.
- What is the minimum exemption limit for individuals under 60 years of age? Individuals who are below 60 years of age and earn under Rs.2.5 lakh will be exempt from tax.
