'TDS of surcharge' on Rent to individual

This query is : Resolved

gopi (Querist)
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07 August 2009
we are paying rent to Mr.X (individual) Rs.2,00,000/- per month. From april 2009 to June 2009 we deducted tax @16.995% i.e. including surcharge. But as per the latest budget, surcharge on personal tax has been removed. what is the effective date for the above amendment...if it 1st Apr-2009 then what about excess amount deducted in the first quarter of 2008-09.

pls reply ASAP.

Thanks in Advance

Gopi

chetan soni

chetan soni (Expert)
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07 August 2009 Removing the surchage on personal tax is w.e.f april 09.

But my friend rate of TDS are effective from 01/10/09.
As in your case you are paying Rent 2L per month to individual. You have charged TDS @ 16.995% till date. Now apply the same rate till Sept 09. Then change the TDS Rate to 10% flat.

taxindiaconnect

taxindiaconnect (Expert)
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07 August 2009 Agreed, however the deductee will get the full credit of TDS deducted from 1.4.09 to 30.09.09

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Shyam Lal Naik

Shyam Lal Naik (Expert)
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07 August 2009 The abolition of SC & EC, so far as TDS is concerned, is effective from 01-04-09.

The rate has been changed from 15%, in the instant case to 10% w.e.f. 01-10-09.