Changes in TDS for F.Y.2009-10

This query is : Resolved

Bharat Rajgor (Querist)
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22 July 2009 I have read the ajor changes are going to be taken place as per Mr.Prakash Somani's file on current rates of TDS.Is it true? If yes then is it going to applicable from 01.10.09.Do we realy have to not to deduct the Tax at source on payment made to any transporter if he gives his PAN? Also don't we have to levy Surcharge & cess on tax deducted? Please clarify my doubts urgently

Shyam Lal Naik

Shyam Lal Naik (Expert)
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22 July 2009 Absolutely right. Only cess need to be deducted from TDS on salary.

Surcharge & Cess need to be deducted on TDS deducted from non-residents.

Most likely the budget proposals in respect of TDS will be passed as it is.

CA. Gurdeep Singh Chawla

CA. Gurdeep Singh Chawla (Expert)
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22 July 2009 rates of tds under section 194 C to be changed from 1 october 2009
rate 1 % for individual and huf
and 2 % other than individual and huf
Payment to a transport operator Nil (2% if no PAN is quoted for payments made up to 31.3.2010
and 20% thereafter)
also rate of tds under section 194 I has been changed
2 % on plant & machinery
10 % on land & building

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