Tax Deduction Source (TDS)

Compliance to Income Tax guidelines/PAN/TDS is made effective as per the Notifications and directions issued by the Central Board of Direct Taxes from time to time.

In terms of Income Tax Act guidelines, aggregate interest exceeding Rs.10,000/- in a financial year paid on bank term deposits of a customer, is liable for tax deduction at source.

Depositors claiming eligible exemption from TDS shall be required to furnish correct and valid PAN along with exemption certificate [Form 15G, 15H] to the Branch Manager for each financial year.

In case of not providing of valid PAN by the depositors, TDS at higher rates i.e., 20% will be deducted on the interest earned on term deposits.


Income Tax rates for the Financial Year 2012-13

Annexure I

A) For Resident Individual(male or female) below the age of 60 years & HUF
Total Income Tax Rate
Where the total income does not exceed Rs. 2,00,000/- NIL
Where the total income exceeds Rs.2,00,000/-, but does not exceed Rs. 5,00,000/- 10% of the amount by which the total income exceeds Rs.2,00,000/-
Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs.8,00,000/- Rs.30,000/- plus 20% of the amount by which the total income exceeds Rs.5,00,000/-
Where the total income exceeds Rs.10,00,000/- Rs.10,00,000/- Rs. 1,30,000/-plus 30% of the amount by which the total income exceeds Rs.10,00,000/-
B) All Resident Individuals, 60 years or more but less than 80 years
Total Income Tax Rate
Where the total income does not exceed Rs. 2,50,000/- NIL
Where the total income exceeds Rs.2,50,000/-, but does not exceed Rs. 5,00,000/- 10% of the amount by which the total income exceeds Rs.2,50,000/-
Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs.8,00,000/- Rs.25,000/- plus 20% of the amount by which the total income exceeds Rs.5,00,000/-
Where the total income exceeds Rs.10,00,000/- Rs.10,00,000/- Rs. 1,25,000/-plus 30% of the amount by which the total income exceeds Rs.10,00,000/-
C) For resident individuals above the age of 80 years or more at any time during the Financial Year
Total Income Tax Rate
Where the total income does not exceed Rs. 5,00,000/- NIL
Where the total income exceeds Rs.5,00,000/-, but does not exceed Rs. 8,00,000/- 20% of the amount by which the total income exceeds Rs.5,00,000/-
Where the total income exceeds Rs. 5,00,000/- but does not exceed Rs.8,00,000/- Rs.25,000/- plus 20% of the amount by which the total income exceeds Rs.5,00,000/-
Where the total income exceeds Rs.8,00,000/- Rs.60,000/- plus 30% of the amount by which the total income exceeds Rs.8,00,000/-

Income Tax Surcharge : NIL


Education Cess: Education Cess of 2% has to be added on Income Tax

Secondary & Higher Education Cess: Secondary & Higher Education Cess of 1% has to be added on income tax.


Annexure II

TDS rates for Financial Year 2011-12 (where PAN of deductee is available. I. A. In case of payment to a resident individual, HUF, Association of Persons (AOP), Body of individual (BOI) with effected from 01.04.2011, where PAN of deductee is available.

Sl No Particulars Tax rate (%)
A Interest on Deposits more than Rs. 10,000 (u/s 194A)

- For individuals, HUF, AOP,BOI 10%
B Payments to Contractor/Sub-Contractors more than Rs. 30,000 (u/s 194 C) and/ or Annual Limit more than Rs.75,000/-

Individual, HUF 1%

- AOP/BOI< 2%
C Payment for advertisement made to Contractors/Sub-contractors more than Rs. 30,000 and/or Annual Limit more than Rs.75,000/-(u/s 194C)

- Individual, HUF 1%

-AOP/BOI 2%
D Commission or Brokerage more than Rs.5,000 (u/e 194H)

- For individuals, HUF, AOP,BOI 10%
E Rent more than Rs.1,80,000 (u/s 194 I)

Plant, Machinery,Equipment including Generator 02%

 


Land, Building,Furniture 10%
F Fee for Professional or Technical Services more than Rs. 30,000 (u/s 194J)

- For individuals, HUF, AOP, BOI 10%

I). B. In case of payment to a Domestic, Company, Firm, Cooperative Society etc. witheffect from 01/04/2011 where PAN of deductee is available

Sl No Particulars Tax rate (%)
A Interest on Deposits more than Rs. 10,000 (u/s 194A)

- In case of Domestic Company,Firm, Cooperative Society 10%
B Payments to Contractor/Sub Contractor more than Rs. 30,000 (U/S 194 C)and/ or Annual Limit more than Rs.75,000/-

- In case of Domestic Company and Firm 2%
C Payment for advertisement made to Contractors/Sub-contractors more than Rs. 30,000 and/ or Annual Limit more than Rs.75,000/-(u/s 194C)

- In case of Domestic Company and Firm 2%
D Commission or Brokerage more than Rs.5,000 (u/e 194H)

- In case of Domestic Company and Firm 10%
E Rent more than Rs.1,80,000 (u/s 194 I) (Domestic Companay & Firm)

Plant, Machinery,Equipment 02%

Land or Building or 10%
F Fee for Professional or Technical Services more than Rs. 30,000 (u/s 194J)

- In case of Domestic Company and Firm 10%

II). TDS rates for the Financial Year 2012-13, where deductee has NOT

Produced PAN: In respect of payments covered under Paras IA and IB above, where PAN of the deductee is not available, then TDS should be 20% for all these cases without fail.


MICR cheque processing charges paid by our bank to other banks w.e.f 01.04.20102

Sl No Particulars Tax rate (%)
A Section 194J 10%

TDS FOR ANY RE NUMERATION OR FEES OR COMMISSION (OTHER THAN THOSE ON WHICH TAX IS DEDUCTIBLE UNDER SECTION 192) TO A DIRECTOR OF A COMPANY(INCLUDING OUR BANK)

Sl No Particulars Tax rate (%)
1994J YES 10%
1994J NO
20%

III). Higher TDS for all transactions liable to TDS, where the permanent Account Number (PAN) of the deductee is not available with the Branch/Office.

Income Tax (TDS) at higher of the prescribed rate or 20% have to be deducted on all transaction liable to TDS, where the Permanent Account Number (PAN) of the deductee is not available with the Branch/Office. It is also applicable to all non-residents in respect of payments/remittances liable to TDS.

Any declaration by the deposit account hold under Section 197 A for non-deduction of TDS on interest payments (i.e. Form 15 H or 15 G) is not valid, unless the application bears PAN of the deposit account holder. Hence, all eligible deposit account holders, who wish to submit form 15 G or 15H to our Branches have to quote their PAN in their application.

IV.Guidelines on “Nil” or “Lower” TDS certificate issued by the Income Tax Department under Section 197 of Income Tax Act 1961.

The gist of modified guidelines on issue of “Nil” or “Lower” TDS certificate by the Income Tax Department under Section 197 of Income Tax Act, 1961 are given below: