Friday, September 6, 2019

TDS Rates for F.Y. 2017-18 (Income-tax Budget / आयकर बजट – 2017)  

Latest TDS Rates for F.Y. 2017-18 (Income-tax Budget / आयकर बजट – 2017) 

We are reproducing here under First Schedule of the Finance Bill, 2017 which is relevant to TDS Rates. In fact,  it will not be the complete Finance Bill, 2017 (Budget- 2017). The portion related to indirect taxes and other matter will also not be dealt here under and may be published separately. However, Complete Bill will be available in PDF format. This income-tax related Finance Bill is being  re-produced in following  parts to understand the provisions easily directly or through links. It is advisable to read following parts in given  sequence for better study and understanding –

    1. Subject-wise – Official Explanations over the various clause of the Finance Bill (To be published separately).
    2. Clause-wise – Official Notes on Clauses of the Finance Bill (To be published separately).
    3. New Income-tax Rates for A.Y. 2018-19 / Click here .
    4. New  TDS Rates for Financial Year 2017-18 as given here under as THE FIRST SCHEDULE
    5. Text of Finance Bill, 2017 completely in PDF Format – Click here for PDF.
    6. Text of  Finance Bill, 2017 (Budget- 2017) – Click Here  

TDS Rates for F.Y. 2017-18 Related to Assessment Year 2018-19

THE FIRST SCHEDULE

PART II

 RATES FOR DEDUCTION OF TAX AT SOURCE IN CERTAIN CASES 

In every case in which under the provisions of sections 193, 194, 194A, 194B, 194BB, 194D , 194LBA, 194LBB, 194LBC and 195 of the Income-tax Act, tax is to be deducted at the rates in force, deduction shall be made from the income subject to the deduction at the following rates:––

Rates of income-tax / TDS Rates

S.No. Item Rate Of Income-tax
1. In the case of a person other than a company—   
(a) where the person is resident in India—  
(i) on income by way of interest other than “Interest on securities” 10 per cent.;

(ii) on income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort

30 per cent.;
(iii) on income by way of winnings from horse races 30 per cent.;
(iv) on income by way of insurance commission 5 per cent.;
(v) on income by way of interest payable on—

(A) any debentures or securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act;

(B) any debentures issued by a company where such debentures are listed on a recognised stock exchange in India in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and any rules made thereunder;

(C) any security of the Central or State Government;

10 per cent.;
(vi) on any other income 10 per cent.;
(b) where the person is not resident in India—  
(i) in the case of a non-resident Indian—  
(A) on any investment income 20 per cent.;

(B) on income by way of long-term capital gains referred to in section 115E or sub-clause (iii) of clause (c) of sub-section (1) of section 112

10 per cent.;

(C) on income by way of short-term capital gains referred to in section 111A

15 per cent.;

(D) on other income by way of long-term capital gains [not being long-term capital gains referred to in clauses (33), (36) and (38) of section 10]

20 per cent.;

(E) on income by way of interest payable by Government or an Indian concernon moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in section 194LB or section 194LC)

20 per cent.;

(F) on income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred toin the first proviso to sub-section (1A) of section 115A of the Income-tax Act, to theIndian concern, or in respect of any computer software referred to in the secondproviso to sub-section (1A) of section 115A of the Income-tax Act, to a person residentin India

10 per cent.;

(G) on income by way of royalty [not being royalty of the nature referred to in sub-item (b)(i)(F)] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy

10 per cent.;

(H) on income by way of fees for technical services payable by  Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy

10 per cent.;

(I) on income by way of winnings from lotteries, crossword puzzles, card gamesand other games of any sort

30 per cent.;
(J) on income by way of winnings from horse races 30 per cent.;
(K) on the whole of the other income 30 per cent.;
(ii) in the case of any other person—  

(A) on income by way of interest payable by Government or an Indian concernon moneys borrowed or debt incurred by Government or the Indian concern in foreigncurrency (not being income by way of interest referred to in section 194LB or section194LC)

20 per cent.;

(B) on income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of section 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of section 115A of the Income-tax Act, to a person resident in India

10 per cent.;

(C) on income by way of royalty [not being royalty of the nature referred to in sub-item (b)(ii)(B)] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in theindustrial policy, for the time being in force, of the Government of India, theagreement is in accordance with that policy

10 per cent.;

(D) on income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force,of the Government of India, the agreement is in accordance with that policy

10 per cent.;

(E) on income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort

30 per cent.;

(F) on income by way of winnings from horse races

30 per cent.;

(G) on income by way of short-term capital gains referred to in section 111A

15 per cent.;

(H) on income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-section (1) of section 112

10 per cent.;

(I) on income by way of other long-term capital gains [not being longtermcapital gains referred to in clauses (33), (36) and (38) of section 10]

20 per cent.;
(J) on the whole of the other income 30 per cent..
2. In the case of a company—  
(a) where the company is a domestic company—  
(i) on income by way of interest other than “Interest on securities” 10 per cent.;

(ii) on income by way of winnings from lotteries, crossword puzzles, cardgames and other games of any sort

30 per cent.;
(iii) on income by way of winnings from horse races 30 per cent.;
(iv) on any other income 10 per cent.;
(b) where the company is not a domestic company—  

(i) on income by way of winnings from lotteries, crossword puzzles, cardgames and other games of any sort

30 per cent.;
(ii) on income by way of winnings from horse races 30 per cent.;

(iii) on income by way of interest payable by Government or an Indian concernon moneys borrowed or debt incurred by Government or the Indian concern inforeign currency (not being income by way of interest referred to in section 194LBor section 194LC)

20 per cent.;

(iv) on income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st day of March, 1976 where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to sub-section (1A) of section 115A of the Income-tax Act, to the Indian concern, or in respect of any computer software referred to in the second proviso to sub-section (1A) of section 115A of the Income-tax Act, to a person resident in India

10 per cent.;

 (v) on income by way of royalty [not being royalty of the nature referred to in sub-item (b)(iv)] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy—

 

(A) where the agreement is made after the 31st day of March, 1961 but before the 1st day of April, 1976

50 per cent.;
(B) where the agreement is made after the 31st day of March, 1976 10 per cent.;

(vi) on income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy, for the time being in force, of the Government of India, the agreement is in accordance with that policy—

 

(A) where the agreement is made after the 29th day of February, 1964 but before the 1st day of April, 1976

50 per cent.;
(B) where the agreement is made after the 31st day of March, 1976 10 per cent.;

(vii) on income by way of short-term capital gains referred to in section 111A

15 per cent.;

(viii) on income by way of long-term capital gains referred to in sub-clause (iii) of clause (c) of sub-section (1) of section 112

10 per cent.;

(ix) on income by way of other long-term capital gains [not being long-term capital gains referred to in clauses (33), (36) and (38) of section 10]

20 per cent.;
(x) on any other income 40 per cent..

Explanation.— For the purposes of item 1(b)(i) of this Part, “investment income” and “non-resident Indian” shall  have the meanings assigned to them in Chapter XII-A of the Income-tax Act.

Surcharge on income-tax 

The amount of income-tax deducted in accordance with the provisions of––

(i) item 1 of this Part, shall be increased by a surcharge, for the purposes of the Union,––

(a) in the case of every individual or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Incometax Act, being a non-resident, calculated,––

  1. at the rate of ten per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds fifty lakh rupees but does not exceed one crore rupees;
  1. at the rate of fifteen per cent. of such tax, where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees; and

(b) in the case of every co-operative society or firm, being a non-resident, calculated at the rate of twelve per cent., where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees;

(ii) Item 2 of this Part shall be increased by a surcharge, for purposes of the Union, in the case of every company other than a domestic company, calculated,––

(a) at the rate of two per cent. of such income-tax where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds one crore rupees but does not exceed ten crore rupees; and

(b) at the rate of five per cent. of such income-tax where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds ten crore rupees.

Union Budget-1

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