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TDS rates for AY 2014-2015

Updated on August 20, 2013

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

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.

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    • profile image

      ZIYA 3 years ago

      Thanks for info....

    • rathishkannah profile image
      Author

      Rathish Kannah S 3 years ago from India

      Thanks for your comments...

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