Tax TDS Rate Chart for FY 2017-18 and AY 2018-19 based on recent Budget 2017 has been provided below (also in PDF). TDS refers to Tax deducted while making a payment to an Assessee Person. For Example, if a person has won Rs.1 Crore on a Game Show, a TDS of 30 lakhs will be deducted and only Rs.70 lakhs net will be paid. TDS is deducted and TDS Rates for AY 2018-19 and FY 2017-18 are provided in the Income Tax Act 1961.
Salary : TDS Rate for FY 2017-18 AY 2018-19
The TDS Rate on Salary payments has remained the same. The current rate of TDS on Salary is 10%, which is the same for the past many years.
Related : – All About GST
Lottery Winnings : TDS Rate for FY 2017-18 AY 2018-19
The current threshold for TDS on Winnings from Lotteries is Rs.10,000. The TDS Rate on Lotteries for FY 2017-18 will be 30% (which happens to be the existing TDS Rate).
Interest Payments : TDS Rate for FY 2017-18 AY 2018-19
Any person not being an individual or a H.U.F. who is responsible for paying to a resident any income by way of interest other than income by way of interest on securities amounting to more than rupees Rs.5,000 or Rs.10,000 as the case may be, shall, at the time of crediting to the payee or at the time of payment or the interest, deduct tax at the prescribed rates.
The Rate of TDS is 10%, No surcharge, education cess or SHEC shall be added.
Related : – ITR, Income Tax
Contract Payments : TDS Rate for FY 2017-18 AY 2018-19
The annual Threshold limit of Rs. 75,000 has been extended to Rs. 1,00,000 vide Finance Act, 2016 w.e.f. 1st June, 2016.
Insurance Commission : TDS Rate for FY 2017-18 AY 2018-19
The earlier threshold limit of Rs. 20,000 has been reduced to Rs. 15,000 vide Finance Act, 2016 w.e.f. 1st June, 2016.
LIC Payments : TDS Rate for FY 2017-18 AY 2018-19
The prescribed rate of tax to be deducted at source is 2%. [The rate of 2% has been reduced to 1% vide Finance Act, 2016 w.e.f. 1st June, 2016]
Commission from Sale of Lottery Tickets : TDS Rate for FY 2017-18 AY 2018-19
Persons earning any income by way of commission, remuneration or prize etc on lottery tickets on amounts exceeding Rs.1,000 shall deduct income-tax at the rate of 10%. The rate of 10% has been reduced to 5% vide Finance Act, 2016 w.e.f. 1st June, 2016.
Procedure to be followed for Depositing of Tax for Section 194IA : TDS Rate for FY 2017-18 AY 2018-19
There was a confusion regarding the depositing the tax and claim of such tax deposited. Whether the deductor would have to apply for a TAN and how and when the tax is to be deposited.
As per section 194-IA, every person (even individuals) making a payment for consideration of an immovable property, not including agricultural land, will withhold tax @ 1% of the transaction amount.
As per notification no. 39/2013 dated 31 May 2013 the following things were made clear:
- Depositing of withholding tax
- Issuance of certificates for such tax
- Filing a return of withholding tax
The following procedure is followed:
The amount deducted under section 194-IA shall be deposited with the Central Government within 7 days from the end of the month in which the amount was deducted. For example, if amount is deducted on 15th June, then amount shall be paid to the credit of Central Government by 7th July.
TDS payment made u/s 194-IA is to be necessarily accompanied by a challan-cum-statement in Form No.26QB.