In respect of various items liable to TDS, the Income-tax Law has prescribed a threshold limit. If the expenditure incurred/payment made during the year is below the threshold limit, then there is no requirement to deduct tax at source. Following list gives the threshold limit in respect of various items covered by TDS provisions:
|
S.No. |
Particular |
Section |
Threshold limist |
|
1. |
No deduction of tax at source from salaries |
192 |
If net taxable income is less than maximum amount which is not chargeable to tax (Rs. 2,50,000 for an individual, Rs. 3,00,000 for Senior Citizens and Rs. 5,00,000 for Super Senior Citizens) |
|
1A. |
No TDS from payment of provident fund account of an employee |
192A |
If amount paid is less than Rs. 30,000. (Rs. 50,000 w.e.f. 1-6-2016) |
|
2. |
No TDS from interest paid on debentures issued by a company in which public are substantially interested. Provided interest is paid by account payee cheque to resident individual or HUF |
193 |
If amount paid or payable during the financial year does not exceed Rs. 5,000 |
|
3. |
No TDS from interest on 8% Saving (Taxable) Bonds 2003 paid to a resident persons |
193 |
If amount paid or payable during the financial year does not exceed Rs. 10,000 |
|
3A. |
No TDS from interest on 6.5% Gold bonds, 1977 or 7% Gold bonds, 1980 paid to resident individual |
193 |
If a declaration is made that the nominal value of such bonds did not exceed Rs. 10,000 at any time during the previous year |
|
4. |
No TDS from dividend paid by account payee cheque to resident persons |
194 |
If amount paid or payable during the financial year does not exceed Rs. 2,500 |
|
5. |
No TDS from interest other than on securities paid by a banking company or co-operative bank on time deposits |
194A |
If amount paid or payable during the financial year does not exceed Rs. 10,000 |
|
6. |
No TDS from interest on deposit with a post office under Senior Citizens Saving Scheme Rules, 2004 |
194A |
If amount paid or payable during the financial year does not exceed Rs. 10,000 |
|
7. |
No TDS from interest other than on securities (in any other case) |
194A |
If amount paid or payable during the financial year does not exceed Rs. 5,000 |
|
8. |
No TDS from interest on compensation awarded by Motor Accident Claims Tribunal |
194A |
If amount paid or payable during the financial year does not exceed Rs. 50,000 |
|
9. |
No TDS from Lottery / Cross Word Puzzles |
194B |
If amount paid or payable during the financial year does not exceed Rs. 10,000 |
|
10. |
No TDS from winnings from horse races |
194BB |
If amount paid or payable during the financial year does not exceed Rs. 5,000 (Rs. 10,000 w.e.f. 01/06/2016) |
|
11. |
No TDS from sum paid or payable to contractor |
194C |
a) If sum paid or payable to a contractor in a single payment does not exceed Rs. 30,000 b) If sum paid or payable to contractor in aggregate does not exceed Rs. 75,000 during the financial year (Rs. 1,00,000 w.e.f. 01/06/2016) |
|
12. |
No TDS from insurance commission paid or payable during the financial year |
194D |
If amount paid or payable during the financial year does not exceed Rs. 20,000 (Rs. 15,000 w.e.f. 01/06/2016) |
|
12A |
No TDS from sum payable under a life insurance a police (including bonus) to a resident (w.e.f. 01-10-2014) person |
194DA |
If amount paid or payable during the financial year does not exceed Rs. 1 lakh |
|
13. |
No TDS from payments made out of deposits under NSS |
194EE |
If amount paid or payable during the financial year does not exceed Rs. 2,500 |
|
14. |
No TDS from commission paid on lottery tickets |
194G |
If amount paid or payable during the financial year does not exceed Rs. 1,000 (Rs. 15,000 w.e.f. 01/06/2016) |
|
15. |
No TDS from payment of commission or brokerage |
194H |
If amount paid or payable during the financial year does not exceed Rs. 5,000 (Rs. 15,000 w.e.f. 01/06/2016). Further no tax to be deducted from commission payable by BSNL/ MTNL to their PCO Franchisees. |
|
16. |
No TDS from payment of rent in respect of land & building, furniture or fittings or plant and machinery |
194-I |
If amount paid or payable during the financial year does not exceed Rs. 1,80,000 |
|
17. |
No TDS from payment of consideration for purchase of an immovable property (other than agriculture land) |
194-IA |
If amount paid or payable during the financial year does not exceed Rs. 50 Lakhs |
|
17A. |
No TDS on payment of rent of any land or building or both by an individual/HUF [whose books of account are not required to be audited under section 44AB] to resident person. |
194-IB |
If amount of rent does not exceed Rs. 50,000 for a month or part of a month. |
|
18. |
No TDS from payment of professional fees, technical fees, royalty and directors' remuneration |
194J |
If amount paid or payable during the financial year does not exceed Rs. 30,000 |
|
19. |
No TDS from payment of compensation on compulsory acquisition of immovable property (other than Agricultural Land) |
194LA |
If amount paid or payable during the financial year does not exceed Rs. 2,50,000 |
|
20. |
Furnishing of quarterly return in respect of payment of interest (other than interest on securities) to residents without deduction of tax |
206A |
If amount paid or payable during the financial year does not exceed: a) Rs.10,000 where payer is banking company or co-operative society;b) Rs.5,000 in other case |
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