Minimum amount up to which TDS is not deducted / TDS Rate Chart / ( TDS Threshold limit) for F.Y 2016-17

Minimum amount up to which TDS is not deducted / FAQs on Tax Deducted at Source/ Tax Deducted at Source (TDS) Rate Chart/Slab for Financial Year (FY) 2016-17 / Assessment Year (AY) 2017-18

Below is TDS/TCS Rates Chart for Financial Year 2016-17/ Assessment Year 2017-18. Below is Upto date TDS rate chart considering the amendments.

TDS deduction limit / Tax Deducted at Source (TDS) Rate Chart/Slab for Financial Year (FY) 2016-17 / Assessment Year (AY) 2017-18

S.No.	Particular	Sec	Threshold limist	Rate
1	No deduction of tax at source from salaries​	192	If net taxable income is less than maximum amount which is not chargeable to tax (Rs. 2,50,000 for an individual, Rs. 3,00,000 for Senior Citizens and Rs. 5,00,000 for Super Senior Citizens)	On the average rates on the basis of per rates for individuals. (30% if no valid PAN)
1A.	No TDS from payment of provident fund account of an employee​	192A	If amount paid is less than Rs. 30,000. (Rs. 50,000 w.e.f. 1-6-2016)	10% (30% if no valid PAN)
2	No TDS from interest paid on debentures issued by a company in which public are substantially interested. Provident interest is paid by account payee cheque to resident individual or HUF	193	If amount paid or payable during the financial year does not exceed Rs. 5,000	10% (20% if no valid PAN)
3	No TDS from interest on 8% Saving (Taxable) Bonds 2003 paid to a resident persons	193	If amount paid or payable during the financial year does not exceed Rs. 10,000	10% (20% if no valid PAN)
3A.	No TDS from interest on 6.5% Gold bonds, 1977 or 7% Gold bonds, 1980 paid to resident individual	193	If a declaration is made that the nominal value of such bonds did not exceed Rs. 10,000 at any time during the previous year	10% (20% if no valid PAN)
4	No TDS from dividend paid by account payee cheque to resident persons	194	If amount paid or payable during the financial year does not exceed Rs. 2,500	10% (20% if no valid PAN)
5	No TDS from interest other than on securities paid by a banking company or co-operative bank on time deposits	194A	If amount paid or payable during the financial year does not exceed Rs. 10,000	10% (20% if no valid PAN)
6	No TDS from interest on deposit with a post office under Senior Citizens Saving Scheme Rules, 2004	194A	If amount paid or payable during the financial year does not exceed Rs. 10,000	10% (20% if no valid PAN)
7	No TDS from interest other than on securities (in any other case)	194A	If amount paid or payable during the financial year does not exceed Rs. 5,000	10% (20% if no valid PAN)
8	No TDS from interest on compensation awarded by Motor Accident Claims Tribunal	194A	If amount paid or payable during the financial year does not exceed Rs. 50,000	10% (20% if no valid PAN)
9	No TDS from Lottery / Cross Word Puzzles	194B	If amount paid or payable during the financial year does not exceed Rs. 10,000	30% (30% if no valid PAN)
10	No TDS from winnings from horse races	194BB	If amount paid or payable during the financial year does not exceed Rs. 5,000 (Rs. 10,000 w.e.f. 01/06/2016)	30% (30% if no valid PAN)
11	No TDS from sum paid or payable to contractor	194C	a) If sum paid or payable to a contractor in a single payment does not exceed Rs. 30,000 b) If sum paid or payable to contractor in aggregate does not exceed Rs. 75,000 during the financial year (Rs. 1,00,000 w.e.f. 01/06/2016)	1% For Individual / HUF for Others 2% (20% if no valid PAN)
12	No TDS from insurance commission paid or payable during the financial year	194D	If amount paid or payable during the financial year does not exceed Rs. 20,000 (Rs. 15,000 w.e.f. 01/06/2016)	10% from 01.04.2016 to 31.05.2016 5% wef 01.06.2016) (20% if no Valid PAN)
12A	No TDS from sum payable under a life insurance a policy (including bonus) to a resident (w.e.f. 01-10-2014) person	194DA	If amount paid or payable during the financial year does not exceed Rs. 1 lakh	2% (1% wef 01.06.2016) (20% if no Valid PAN)
13	No TDS from payments made out of deposits under NSS	194EE	If amount paid or payable during the financial year does not exceed Rs. 2,500	20% (20% if no Valid PAN)
14	No TDS from commission paid on lottery tickets	194G	If amount paid or payable during the financial year does not exceed Rs. 1,000 (Rs. 15,000 w.e.f. 01/06/2016)	10%  from 01.04.2016 to 31.05.2016 5% wef 01.06.2016) (20% if no Valid PAN)
15	No TDS from payment of commission or brokerage	194H	If amount paid or payable during the financial year does not exceed Rs. 5,000 (Rs. 15,000 w.e.f. 01/06/2016). Further no tax to be deducted from commission payable by BSNL/ MTNL to their PCO Franchisees.	10%  from 01.04.2016 to 31.05.2016 5% wef 01.06.2016) (20% if no Valid PAN)
16	No TDS from payment of rent in respect of land &building, furniture or fittings or plant and machinery	194-I	If amount paid or payable during the financial year does not exceed Rs. 1,80,000	10% – If rent is for land, building or furniture(20% if no Valid PAN)2% – If the rent is for Machinery, Plant or Equipment(20% if no Valid PAN)
17	No TDS from payment of consideration for purchase of an immovable property (other than agriculture land)	194-IA	If amount paid or payable during the financial year does not exceed Rs. 50 Lakhs	1% (20% if no Valid PAN)
18	No TDS from payment of professional fees, technical fees, royalty and directors' remuneration	194J	If amount paid or payable during the financial year does not exceed Rs. 30,000	10% (20% if no Valid PAN)
19	No TDS from payment of compensation on compulsory acquisition of immovable property (other than Agricultural Land)	194LA	If amount paid or payable during the financial year does not exceed Rs. 2,00,000 (Rs. 2,50,000 w.e.f. 01/06/2016)​	10% (20% if no Valid PAN)
20	Furnishing of quarterly return in respect of payment of interest (other than interest on securities) to residents without deduction of tax	206A	If amount paid or payable during the financial year does not exceed: a) Rs.10,000 where payer is banking company or co-operative society; b) Rs.5,000 in other case

Tax Deducted at Source (TDS) Rate Chart/Slab for Financial Year (FY) 2016-17 / Assessment Year (AY) 2017-18 TDS, Income Tax, tds minimum amount, tds threshold limit, FAQs on Tax Deducted at Source

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New e-TDS/TCS Return Preparation Utility Ver. 1.2 released

It is proposed to release new version of NSDL e-Gov TDS/TCS – Return Preparation Utility (RPU) and File Validation Utility (FVU) tentatively on 23^rd June, 2015. Details of which are given below:-

1.    Return Preparation Utility (RPU)

·         Version 1.2 (Java based)

·         Version 4.4 (VB based)

2.    File Validation Utility (FVU)

·         Version 4.7 :- For quarterly e-TDS/TCS statement pertaining to FY 2010-11 onwards

·         Version 2.143:- For quarterly e-TDS/TCS statements up to FY 2009-10  

Above utilities can be downloaded from below URL :- 

https://www.tin-nsdl.com/etds-etcs/eTDS-download-regular.php

Features of the new version of RPU and FVU are as given below:-

1.    Incorporation of section code 192A and 194LBB: Section code 192A and 194LBB will be incorporated where the date of payment is on or after 01/06/2015 for regular and correction TDS statements pertaining to FY is 2015-16 onwards. Section code 192A will be applicable for Form no. 26Q and section code 194LBB will be applicable to Form no. 26Q and 27Q.

2.    Validation of Total Tax deducted vis a vis Total Tax Deposited amount: Validation will be incorporated in the TDS/TCS FVU wherein the total tax deducted amount in the deductee details should be equal to total tax deposited amount at the deductee details. This validation will apply to

ü  TDS/TCS statements pertaining to all F.Ys and all Forms.

ü  Will apply to regular and correction TDS/TCS statements.

3.    Incorporation of “T” remark (Transporter transaction and valid PAN is provided) in deductee details (Annexure I): Remark “T” will be applicable for Form no. 26Q from Q3 of FY 2009-10 onwards. This validation will apply to regular and correction statements.

4.    Applicability of certificate no. for lower/non deduction in deductee details (Annexure I): Quoting of certificate no. (if applicable) will be allowed only if the corresponding section code in deductee details is 192, 193, 194, 194A, 194C, 194D, 194G, 194H, 194-I, 194J, 194LA, 195 and 206C (TCS). This validation will apply to regular and correction TDS/TCS statement pertaining to FY 2013-14 onwards.

5.    Higher deduction flag “C” not applicable to Section code 194LC: If the section code at the challan/ deductee details is 194LC, then the corresponding deductee record will not be mandated for higher rate of tax deduction i.e., will not be mandated to select flag “C”. Further, no warning message will be provided if the rate of deduction is less than 20.0000. This validation will apply to regular and correction statement pertaining to FY 2012-13 onwards where date of payment is 1st June, 2013 onwards.

6.    Deductee records with remark ‘C’ validations across all forms: In addition to existing editable fields for “C” remark deductee records in correction file, below mentioned fields will also to be allowed for update.

ü  Name of deductee

ü  Section code

ü  Nature of remittance (Applicable only for Form 27Q)

ü  “Unique acknowledgement of the corresponding form no. 15CA (if available)” (Applicable only for Form 27Q)

ü  Country of Residence of the deductee (Applicable only for Form 27Q)

ü  Grossing up indicator (Applicable only for Form 27Q)

ü  Date of deduction (Applicable to all Forms)

Said validation will be applicable for correction TDS/TCS statements.

In case of any queries / feedback, you may revert to us at tin_returns@nsdl.co.in .

For and on behalf of Tax Information Network.

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Top 5 myths around filing e-returns that might cost you heavily

E-filing of income tax returns, introduced by the IT Department in assessment year 2007-08 for individuals earning over Rs 5 lakhs per annum from the assessment year 2013-14 onwards, is a simple and easy way of filing returns but has not been popular because of the mindset of the people and misconceptions about filing tax returns online.

These misconceptions can cost you dearly and that's why they need to be clarified. We are sharing the five most common myths surrounding the process of filing of tax return online, which otherwise is extremely simple in nature: 

Myth 1: I don't need to pay tax for the interest income generated on fixed deposits as the bank already deducts the tax at source. This is a common misconception with people earning interest income on fixed deposits. It is an utter misconception as the taxpayer may be liable to pay tax on the same at a much higher tax rate. Let's take an example of an employee earning Rs 6,00,000 per annum as salary. He also earns an interest of Rs 20,000 on his fixed deposit. The bank has deducted tax at source of Rs 2,000 but he is actually liable to pay a tax amount of Rs 4,000 on the same as he comes under the 20 per cent tax bracket, whereas the bank has deducted only 10 per cent. 

Myth 2: My e-filing process is complete once I've submitted my tax return online. The e-filing process of a taxpayer isn't complete unless a signed copy of the ITR-V acknowledgement has been sent to the CPC in Bangalore within 120 days from the date on which the taxpayer filed his/her income tax return. Remember that the ITR-V copy should be sent via Speed Post or Ordinary Post only. The IT department has initiated the process of scrapping this process for all the taxpayers holding an Aadhar card. Taxpayers without an Aadhar card would be liable to send a signed copy of their ITR-V acknowledgement to the CPC in Bangalore and if one fails to do so; his/her income tax return may be considered as unfiled making the taxpayer file his/her returns once again. 

Myth 3: I don't need to disclose my previous salary amount to my current employer. This is a common problem wherein most employees avoid mentioning any details about their previous employer to their present employer. Because of this, the new employers have no details about previous salary, making them deduct tax at source as if the employee has no other source of income. That is incorrect. The employee must realise that the tax must be paid on the total amount of salary received in the previous year. When the two salaries are added together, it usually results in the employee entering into a higher tax bracket. 

Myth 4: The process of e-filing one's income tax return is not mandatory. Filing returns has been made mandatory for any taxpayer having a total income of Rs 5,00,000 or more. Total income is arrived at after deducting all the relevant deductions under chapter via one's gross total income. A taxpayer earning less than Rs 5,00,000 can also e-file their income tax returns or use the option of filing returns manually, however the same is not recommend. 

Myth 5: If I e-file my income tax return, I'll come under the scrutiny of the IT Dept. Once the process of e-filing the return is over, you receive an intimation u/s 143(1). This intimation is just a standard practice on the part of the CPC in Bangalore. A refund cannot be processed without the same. Unfortunately, sometimes even though the taxpayer has correctly disclosed all the income information in his tax return, he gets a tax demand via the intimation u/s 143(1). This is only because the department hasn't processed his case correctly and the taxpayer can correct the same by filing a rectification u/s 154. (The writer is CIO & Founder of Makemyreturns.com) 

(Business Today)

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Features of forthcoming release of TDS/TCS - Return Preparation Utility (RPU) Version 4.4 (VB based) and Version 1.2 (Java based) and TDS/TCS - File Validation Utility (FVU) (Version 4.7 and 2.143)

It is proposed to release new version of NSDL e-Gov TDS/TCS – Return Preparation Utility (RPU) and File Validation Utility (FVU) tentatively on19^th June, 2015. Details of which are given below:-

1.    Return Preparation Utility (RPU)

·         Version 1.2 (Java based)

·         Version 4.4 (VB based)

2.    File Validation Utility (FVU)

·         Version 4.7 :- For quarterly e-TDS/TCS statement pertaining to FY 2010-11 onwards

·         Version 2.143:- For quarterly e-TDS/TCS statements up to FY 2009-10  

Features of the new version of RPU and FVU are as given below:-

1.    Incorporation of section code 192A and 194LBB: Section code 192A and 194LBB will be incorporated where the date of payment is on or after 01/06/2015 for regular and correction TDS statements pertaining to FY is 2015-16 onwards. Section code 192A will be applicable for Form no. 26Q and section code 194LBB will be applicable to Form no. 26Q and 27Q.

2.    Validation of Total Tax deducted vis a vis Total Tax Deposited amount: Validation will be incorporated in the TDS/TCS FVU wherein the total tax deducted amount in the deductee details should be equal to total tax deposited amount at the deductee details. This validation will apply to

ü  TDS/TCS statements pertaining to all F.Ys and all Forms.

ü  Will apply to regular and correction TDS/TCS statements.

3.    Incorporation of “T” remark (Transporter transaction and valid PAN is provided) in deductee details (Annexure I):  Remark “T” will be applicable for Form no. 26Q from Q3 of FY 2009-10 onwards. This validation will apply to regular and correction statements.

4.    Applicability of certificate no. for lower/non deduction in deductee details (Annexure I): Quoting of certificate no. (if applicable) will be allowed only if the corresponding section code in deductee details is 192, 193, 194, 194A, 194C, 194D, 194G, 194H, 194-I, 194J, 194LA, 195 and 206C (TCS). This validation will apply to regular and correction TDS/TCS statement pertaining to FY 2013-14 onwards.

5.    Higher deduction flag “C” not applicable to Section code 194LC: If the section code at the challan/ deductee details is 194LC, then the corresponding deductee record will not be mandated for higher rate of tax deduction i.e., will not be mandated to select flag “C”. Further, no warning message will be provided if the rate of deduction is less than 20.0000. This validation will apply to regular and correction statement pertaining to FY 2012-13 onwards where date of payment is 1st June, 2013 onwards.

6.    Deductee records with remark ‘C’ validations across all forms: In addition to existing editable fields for “C” remark deductee records in correction file, below mentioned fields will also to be allowed for update.

ü  Name of deductee

ü  Section code

ü  Nature of remittance (Applicable only for Form 27Q)

ü  “Unique acknowledgement of the corresponding form no. 15CA (if available)” (Applicable only for Form 27Q)

ü  Country of Residence of the deductee (Applicable only for Form 27Q)

ü  Grossing up indicator (Applicable only for Form 27Q)

ü  Date of deduction (Applicable to all Forms)

Said validation will be applicable for correction TDS/TCS statements.

In case of any queries / feedback, you may revert to us at tin_returns@nsdl.co.in .

For and on behalf of Tax Information Network.

Read more »