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TDS Rates and Limits Overview

This module provides an overview of TDS rates, threshold limits, and exceptions for the current financial year. It includes a detailed chart of various payment types with their corresponding threshold limits and TDS rates, as well as information on non-applicability and exemptions. Additionally, it outlines special rates for non-residents and the process for claiming lower or nil TDS through specific forms and certificates.

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md.actuary1996
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5 views5 pages

TDS Rates and Limits Overview

This module provides an overview of TDS rates, threshold limits, and exceptions for the current financial year. It includes a detailed chart of various payment types with their corresponding threshold limits and TDS rates, as well as information on non-applicability and exemptions. Additionally, it outlines special rates for non-residents and the process for claiming lower or nil TDS through specific forms and certificates.

Uploaded by

md.actuary1996
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd

Module 3: Rates,

Thresholds & Exceptions -


TDS Overview
This module discusses TDS rates, threshold limits, and key
exceptions for the current financial year.

by Mohit Dasarda
TDS Rates & Thresholds Chart
Nature of Payment Threshold Limit TDS Rate

Salary As per slab As per slab

Bank Interest ₹40,000 (₹50,000 SC) 10%

Contractor Payments ₹30,000/₹1,00,000 1% / 2%

Rent ₹2,40,000 2% / 10%

Professional Fees ₹30,000 10% / 2%

Commission/Brokerage ₹15,000 5%

Property Purchase > ₹50,00,000 1%

Cash Withdrawal > ₹1 crore 2% / 5%

Note: Always refer to CBDT notifications and Finance Act for updates.
Threshold Limits and Exemptions
Non-Applicability Examples Exemption Cases
TDS not deducted if payment • FD Interest: < ₹40,000 (< • Payments to government/local
below threshold limits. ₹50,000 for seniors) authorities
• Rent: < ₹2,40,000 yearly • Interest to banks (certain cases)
• Commission: < ₹15,000 yearly • Payments to mutual funds or
insurers
Special Rates & Higher Charges for Non-
Residents
Common TDS Rates Surcharge & PAN Rules

• Royalty: 10% • Surcharge varies with income


• Technical Services: 10% • Health & Education Cess: 4%
• Interest: 20% • PAN mandatory or TDS at 20% (Sec 206AA)
• Dividends: 20%
• Capital Gains: 10% to 20%
Lower or Nil TDS - Forms & Certificates
Form 15G
Individuals below 60 years with nil tax liability.

Form 15H
Senior citizens (60 years and above) claiming exemption.

Section 197 Certificate


Apply for lower or nil TDS via AO using Form 13.

Submission Timing
To be submitted to deductor at start of financial year.

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