TDS is one of the forms of collecting tax. It is based on the scheme “Pay as you earn”. Tax must be deducted at the time of payment in cash or cheque or credit to the payee’s account whichever is earlier. Payee’s account refers to deductee’s account in this case.
The updated chart of tax Deduction at Source for FY 2015-16 or AY 2016-17 is as under:
Find the table below for the TDS (Tax Deduction at source) rates and threshold limit for financial year 2015-16 or assessment year 2016-17. In this table there is complete list of the payment on which TDS is deducted, threshold limit, Assessee type (tax payer) and rate of TDS.
A. TDS rates Chart for FY 2015-2016:
| Section | Nature of Payment | Threshold Limit | Rate-HUF/Ind % | Rate-Others % | If No / Invalid PAN |
| 192 | Salaries | Average Rate | – | 30 | |
| 192A | Premature withdrawal from EPF ( wef 01.06.2015) | 30000 | 10 | – | 20 |
| 193 | Interest on Debentures Interest on Securities | 5000 10000 | 10 | 10 | 20 |
| 194 | Deemed dividend u/s.2(22)(e) Dividends other than listed companies | 2500 | 10 | 10 | 20 |
| 194A | Interest other than Interest on Securities (including recurring deposits wef 01-06-2015) :Bank/Post office | 10000 | 10 | 10 | 20 |
| 194A | Interest other than Interest on Securities : Others | 5000 | 10 | 10 | 20 |
| 194B | Lottery / Cross Word Puzzle | 10000 | 30 | 30 | 30 |
| 194BB | Winning form horse race | 5000 | 30 | 30 | 30 |
| 194C | Contracts: Single | 30000 | 1 | 2 | 20 |
| 194C | Contracts: Aggregate | 75000 | 1 | 2 | 20 |
| 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) | 30000/75000 | 1 | 2 | 20 |
| 194C | Contract – Transporter covered under 44AE & submit declaration on prescribed form with PAN (wef 01.06.2015) | – | – | – | 20 |
| 194D | Insurance Commission | 20000 | 10 | 10 | 20 |
| 194DA | (w.e.f. 01/10/2014) Payment in respect of Life Insurance Policy (including Bonus) | 100000 | 2 | 2 | 20 |
| 194E | Payments to non-resident sportsmen or sports associations | – | 20 | 20 | 20 |
| 194EE | Refund of NSS | 2500 | 20 | – | 20 |
| 194F | Repurchase of units by MF / UTI | – | 20 | 20 | 20 |
| 194G | Commission on sale of lottery tickets | 1000 | 10 | 10 | 20 |
| 194H | Commission or Brokerage | 5000 | 10 | 10 | 20 |
| 194I | Land, building (including factory building) or land appurtenant to a building (including factory building) or furniture or fittings | 180000 | 10 | 10 | 20 |
| 194I | Rent of Machinery, Plant or Equipment | 180000 | 2 | 2 | 20 |
| 194IA | Transfer of Immovable property other than agriculture land (w.e.f. 01.06.2013) | 50 Lakh | 1 | 1 | 20 |
| 194J | Professional/ Technical charges/ Royalty & Non-compete fees/ Payments to directors | 30000 | 10 | 10 | 20 |
| 194LA | Compensation on acquisition of immovable property | 200000 | 10 | 10 | 20 |
| 194LB | Interest from an Infrastructure Bond | – | 5 | 5 | 20 |
| 194LBA | Income in the nature of interest received or receivable from a special purpose vehicle, distributed by a business trust to its unit holders. Resident Payee Non Resident PayeeDistribution of income by a business trust being a real estate investment trust (wef 01-06-2015) | – | 10 5 | 10 5 | |
| 194LBB | Payments to a unit holder in respect of units of Investment Fund u/s 115UB | – | 10 | 10 | |
| 194LC | Interest to Non Resident from Indian company/business trusts engaged in certain business | – | 5 | 5 | 20 |
| 194LD | Interest on certain Govt Bonds/Securities payable on or after 01-06-2013 but before 01-06-2017 | – | 5 | 5 | 20 |
| 195/196B/196C/196D/ 196E | Payment to non-residents | – | Rates in force | Rates in force | 20 |
B. The Tax Collection at Source Rates for the Financial Year 2015-16 is tabulated below:
| Section | Nature of Goods | Rates in % |
| 206C | Alcoholic liquor for human Consumption | 1 |
| 206C | Tendu leaves | 5 |
| 206C | Timber obtained under forest lease | 2.5 |
| 206C | Timber obtained by any mode other than a forest lease | 2.5 |
| 206C | Any other forest produce not being timber or tendu leaves | 2.5 |
| 206C | Scrap | 1 |
| 206C | Parking lot | 2 |
| 206C | Toll plaza | 2 |
| 206C | Mining & Quarrying | 2 |
| 206C | Minerals, being coal or lignite or iron ore | 1 |
| 206C | Bullion or jewellery (if the sale consideration is paid in cash exceeding INR 2 lakhs) | 1 |