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  • TDS Rates for AY 2015-16

    TDS stands for Tax Deducted at Source. It is an indirect way of collecting income tax at source by the government of India. TDS is managed by the Central Board for Direct Taxes (CBTD). TDS is levied on incomes earned from incentives and commissions, dividends, payment earned for various services, sale, rent and purchase of immovable property, fixed deposits, etc. The deduction of TDS varies based on the source of your income and it ranges between 1% to 30%. The person on whom the responsibility of deducting tax is imposed has to deduct tax at source at appropriate rates and the deducted sum is deposited to the credit of government of India.

    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, TDS deduction rate on salary ranges from 10% to 30%.

    TDS Rates Chart for AY 2015-16:

    TDS rates chart for income tax on select categories for the financial year 2015 and 2016 are listed below. These rates are applicable for resident Indians.

    Nature of payment % of TDS
    Payment of salary (Section 192) Normal slab rate
    Interest on securities (Section 193) 10%
    Dividend excluding the dividends mentioned in section 115-O (Section 194) 10%
    Income received from interest other than “interest on securities” (Section-194A) 10%
    Income received from winning lotteries, crosswords, and games, etc. ( Section-194B) 30%
    Insurance commission (Section-194D) 10%
    Payment for life insurance policy (Section 194DA) 2%
    Rent (Section 194-I)

    For plant and machinery – 2%

    Land, furniture, fitting and furniture-10%

    Payment on transfer of immovable property excluding agricultural land ( Section (194- IA) 1%

    Income Tax TDS Rates Applicable for NRIs are Mentioned Below:

    Nature of Payment % of TDS
    Payment of salary (Section 192) Normal slab rate  
    Payment of accumulated balance of provident fund (Section 192A)   10%

    Income received from winnings lotteries, crossword puzzles, card games and other games of any sort (Section 194B)  
    Income received from winnings from horse races (Section 194BB).   30%
    Payment on deposit under National Savings scheme (section- 194EE) 20%
    Payment on repurchase of Mutual Fund or Unit Trust of India ( Section 194F) 20%
    Commission on sale of lottery tickets (Section 194G) 10%

    TDS Deduction Rate:

    TDS deduction rates are dependent on your taxable income. TDS deduction rate for the financial year 2015 and 2016 are mentioned below. These rates are applicable for general taxpayers, both men and women.

    Taxable Income Tax Rate
    Up to Rs. 2,50,000 Nil
    Rs. 2,50,000 to Rs. 5,00,000 10%
    Rs. 5,00,000 to Rs. 10,00,000 20%
    Above Rs. 10,00,000 30%

    TDS Slab Rates:

    TDS deduction rates are different for senior citizens and super senior citizens. The below mentioned TDS slab rates are applicable for senior citizens aged between 60 to 80 years:

    Income Slabs Tax Rate
    Up to Rs. 3,00,000 Nil
    Rs. 3,00,000 - Rs. 5,00,000 10%
    Rs. 5,00,000 - Rs. 10,00,000 20%
    Above Rs. 10,00,000 30%

    For super senior citizens aged 80 years and above, the following rates are applicable:

    Income Slabs Tax Rate
    Up to Rs. 5,00,000 Nil
    Rs. 5,00,000 - Rs. 10,00,000 20%
    Above Rs. 10,00,000 30%

    News About TDS Rates

    • Small Businesses, Agents and Employees get TDS Relief

      Arun Jaitley announced an overhaul of India’s tax deducted at source system. This will help the small taxpayers, contractors, employees and commission agent with cut in taxes. He wished to rationalise the TDS provision. TDS on payment of Life insurance policies will be reduced to 1% from 2%. TDS on payment of NSS will be reduced to 10%, insurance commission TDS at 5% and TDS on brokerage reduced to 5%. TDS for EPF has been increased to Rs.50,000. TDS threshold for winnings from horse race has been increased to Rs.10,000. TDS on payment to contractors will be Rs.1 lakh, TDS on payment on acquisition of immovable property has been increased to Rs.2,50,000. TDS on sale of lottery has been increased to Rs.15,000 and on commission on brokerage to Rs.15,000. TDS for threshold in case of insurance commission has been reduced by Rs.5,000 and is now Rs.15,000.

      8th March 2016


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