Latest TDS Rates for FY 2018-19 (AY 2019-20)

What is the Latest TDS Rates for FY 2018-19 (AY 2019-20)? Many of us are aware of the TDS rates applicable to Bank FDs or when our employers deduct the TDS from our salary. But do you know there are many incomes where TDS is also deducted?

TDS or Tax Deducted at Source is the process deducting the tax from the original source of income (like Bank or employer).

TDS is calculated and levied on the basis of a threshold limit, which is the maximum level of income after which TDS will be deducted from your future income/payments.

As I told earlier, apart from salary income and Bank FD earning, there are many ways TDS is deducted like  interest income from the post office, insurance commission, rent payment, early EPF withdrawals, the sale of immovable property, rent payments on property etc.,

Latest TDS Rates for FY 2018-19 (AY 2019-20)

Now let us discuss about the Latest TDS Rates for FY 2018-19 (AY 2019-20). Below is the complete chart of the same.

Note-

  • From the Budget 2018, the threshold limit for deduction of tax at source on interest income of Bank / Post office / Co-operative Bank deposits for senior citizens raised from Rs.10,000 to Rs. 50,000.
  • TDS on Life Insurance is applicable if it is not exempt under Sec.10(10D).
  • Tax Collected at Source (TCS) is applicable on purchase of Motor vehicle worth more than Rs 10 Lakh.

Latest TDS Rates for FY 2018-19 (AY 2019-20) for NRIs

  • Interest earned on Non-Resident Ordinary Account (NRO) is taxable. A TDS of 30% is applicable to it.
  • Interest earned on Non-Resident External (NRE) accounts and Foreign Currency Non Resident (FCNR) accounts are not taxed in India. Therefore there is no TDS.
  • When an NRI sells the property, the buyer is liable to deduct TDS @ 20% on Long Term Capital Gains. A TDS @30% is applicable if it is Short Term Capital Gains.
  • NRI Investments in Shares / Mutual Funds -Below are the TDS rate applicable on MF redemptions by NRIs for FY 2018-19.

Latest TDS Rates for FY 2018-19 (AY 2019-20) for NRIs

Some misconceptions about TDS (Tax Deducted at Source)

  • No TDS does not mean no tax liability. Based on the product you still have to pay the tax as per your tax liability.
  • If you paid the TDS, then your tax liability not ends there itself. You have to file IT return and if anything more than TDS is payable, then you have to pay it.
  • Submitting Form15G or Form 15H is not the solution. You have to first find out the eligibility of submission of such forms. It is a misconception that all can submit Form 15G or Form 15H.

Hope this information is sufficient for you all to understand the applicable Latest TDS Rates for FY 2018-19 (AY 2019-20).

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