TDS rates for AY 2014-2015
What is TDS ?
Before getting into the TDS rates, let's see the overview of TDS. TDS means Tax Deducted at Source. TDS is one of the form of collecting tax. It is based on the scheme " Pay as you earn "
There are two parties involved in TDS. They are :
- Deductor
- Deductee
Deductor is one who deducts the tax and Deductee is one from whom the tax is being deducted.
When should be TDS deducted ?
In case of TDS, 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.
TDS Sections under Income Tax Act 1961
Though the sections are not that much relevant, it should be included in this Hub to make this a complete one. TDS is covered under sections 192 to 194 LA of the Income Tax Act 1961.
TDS rates for the AY 2014-2015
Now let's get into the detail of TDS rates for the Assessment Year (AY) 2014-2015 ( Financial Year (FY) 2013-2014 )
Though there is not much changes in the TDS rate compared to the previous Assessment Year (AY) 2013-2014, there has been a latest addition to it.
"TDS on Transfer immovable property other than agriculture land" w.e.f. 1st June 2013.The Finance Act 2013 had provided that purchaser of an immovable property (other than agricultural land) worth over Rs 50 lakh is required to pay withholding tax at the rate of 1% from the consideration payable to a resident transferor. The rate at which tax is to be cut is 1%, but it would go up to as high as 20% if the seller does not disclose his permanent account number. This amendment is effective from 1st June, 2013.
TDS Rates is segregated into two. One is for Individual and HUF and the next one is for others.
TDS rates Chart for AY 2014-2015
Sl. No.
| Section
| Nature of Payment
| Threshold Limit
| Rate in %
| Rate in %
|
|---|---|---|---|---|---|
HUF/INDL
| Others
| ||||
1
| 192
| Salaries
| Average Rate
| ||
2
| 193
| Interest on Debentures
| 5000
| 10
| 10
|
3
| 194
| Deemed Dividend
| -
| 10
| 10
|
4
| 194A
| Interest other than Interest onSecurities (By Bank)
| 10000
| 10
| 10
|
4A
| 194A
| Interest other than Interest on Securities (By Others)
| 5000
| 10
| 10
|
5
| 194B
| Lottery / Cross Word Puzzle
| 10000
| 30
| 30
|
6
| 194BB
| Winning form horse race
| 5000
| 30
| 30
|
7
| 194C(1)
| Contractors
| 30000
| 1
| 2
|
8
| 194C(2)
| Sub-Contractors / Advertisements
| 30000
| 1
| 2
|
9
| 194D
| Insurance Commission
| 20000
| 10
| 10
|
10
| 194EE
| Payments out od Deposit under NSS
| 2500
| 20
| -
|
11
| 194F
| Repurchase of units by MF / UTI
| 1000
| 20
| 20
|
12
| 194G
| Commission on sale of lotter tickets
| 1000
| 10
| 10
|
13
| 194H
| Commission or Brokerage
| 5000
| 10
| 10
|
14
| 194I
| Rent (Land & Building) Furniture & Fittings
| 180000
| 10
| 10
|
14A
| 194I
| Rent (P & M, Equipment)
| 180000
| 2
| 2
|
15
| 194 IA
| TDS on transfer of Immovable property other than agriculture land (w.e.f. 01.06.2013)
| 50 Lacs
| 1
| 1
|
16
| 194J
| Professional/Technical charges/ Royalty & Non compete fees
| 30000
| 10
| 10
|
17
| 194J(1)(ba)
| Any remuneration or commission paid to director of the company(w.e.f. 01.07.2012)
| Nil
| 10
| 10
|
18
| 194LA
| Compensation on acquisition of immovable property
| 200000
| 10
| 10
|
Tax Slab Rate Assessment Year (AY) 2013-2014
- Slab Rate for Assessment Year (AY) 2013-2014
Income Tax are charged at fixed rate for the year by the annual Finance Act. This Hub deals with the Tax (slab) rate for the Assessmen Year 2013-2014. This rate may change for each Assessment year.
Explanatory Note:
1) TDS rate on Salary depends upon the Tax slab rate for the concerned Assessment Year. Now TDS rate on Salary depends upon Tax Slab Rate for the AY 2014-2015.
2) 20% is the highest rate in TDS. If the deductee does not provide PAN No. to the deductor, then the TDS rate applicable is 20%.
3) Section 194I has been divided into two. One is Rent of Land and Building, Furniture and Fittings. the second one is Rent of Plant and Machinery, Equipment.
4) No TDS on providing goods transportation charges: No deduction shall be made from any payments made to a contractor during the course of business of plying, hiring or leasing goods carriages, on furnishing of his PAN to the deductor.
5) Annual Limit under Section 194C : Though the threshold limit of Rs. 30,000 mentioned for for 194C, it is for the value of one transaction. However if the aggregate of paid or credited to the contractor or sub-contractor exceeds Rs. 75,000 during the financial year, then TDS has to be deducted under Section 194C.
.
Disclaimer :
I have made all efforts to give the correct information. But please do not rely on this alone. Better read the Law before acting. I will not be responsible,I n case, any loss or damage is caused to any person due to his / her treating or interpreting the contents of this hub or any part thereof as correct, complete and up-to-date statement of law out of ignorance or otherwise.
Conclusion
Hope this hub will be a useful one to you. If you have any questions related to TDS just make a comment below.
