New TDS rates wef 01-10-09

This query is : Resolved

Sudheer J. Sarvate (Querist)
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16 September 2009 Sir,

wef 01-10-2009, tds rates has changed. Now we have to deduct TDS as basic only. No surcharge or cess has to be add.

Now I came to know that surcharge & cess has not be added from 01-04-2009.

My querry is that, uptill now while deducting TDS I was adding cess(eg. 10.3% on prof., Commission, & 2.06% on Contracts)
whether excess deduction of tax allowed.

Please guide.

CA Debasish Banerjee

CA Debasish Banerjee (Expert)
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17 September 2009 Yes, as long as you don't fall short. There is no section against excess deductions.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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17 September 2009 TDS RATES FROM 01.04.2009 to 30.09.2009

Rates in %
SECTION NATURE OF PAYMENT CRITERIA FOR DEDUCTION INDIVIDUAL and HUF Payment To Others
(PAYMENT IN EXCESS OF)
194A Interest from a Banking Company Rs. 10,000/- p.a 10 20
194A Interest other than from a Banking Co. Rs. 5,000/- p.a 10 20
194C Contractors,(Advertising Contracts)& payment to sub-contrctor Rs.20,000/- per contract or Rs. 50,000/- p.a 1 1
194C Contractors & CF Agents (Others) Rs.20,000/- per contract or Rs. 50,000/- p.a 2 2
194H Commission or Brokerage Rs. 2,500/- p.a 10 10
194I Rent other than Plant, Mach.& Eqp. Rs. 1,20,000/- p.a 15 20
194I Rent of Plant , Machinery & Equipments Rs. 1,20,000/- p.a 10 10
194J Professional / Technicall Charges Rs.20,000/-p.a 10 10
No surcharge and cess is to be added from 01.04.2009 on tax deducted on non-salary payments made to resident taxpayers.It means that Surcharges &
cess is not be included in basic TDS rates ,while deduction tds , in case of payments to resident person/domestic company only .So in case of payment to
Non resident and non -domestic company surcharge and Cess is also to be included while calculating TDS amount .

TDS RATES FROM 01.10.2009
Rates in %
CRITERIA FOR DEDUCTION INDIVIDUAL and HUF Payment To Other
SECTION NATURE OF PAYMENT (PAYMENT IN EXCESS OF)

194A Interest from a Banking Company Rs. 10,000/- p.a 10 20
194A Interest other than from a Banking Co. Rs. 5,000/- p.a 10 20
194C Payment to sub-contrctor/Advertisement contracts Rs.20,000/- per contract or Rs. 50,000/- p.a 1 2
194C other Contractors Rs.20,000/- per contract or Rs. 50,000/- p.a 1 2
194C Transport contractors engaged in the business of plying, hiring or leasing goods carriages. Nil * Nil Nil
194H Commission or Brokerage Rs. 2,500/- p.a 10 10
194I Rent other than Plant, Mach.& Eqp. Rs. 1,20,000/- p.a 10 10
194I Rent of Plant , Machinery & Equipments Rs. 1,20,000/- p.a 2 2
194J Professional/Technical Charges Rs.20,000/-p.a 10 10
* The nil rate will be applicable if the transporter quotes his PAN. If PAN is not quoted the rate will be 1% for an individual/ HUF transporter and 2%
for other transporters upto 31.3.2010.

** The rate of TDS will be 20 per cent in all cases, if PAN is not quoted by the deductee w.e.f. 1.04.2010
No surcharge and cess is to be added from 01.04.2009 on tax deducted on non-salary payments made to resident taxpayers.It means that Surcharges &
cess is not be included in basic TDS rates ,while deduction tds , in case of payments to resident person/domestic company only .So in case of payment to
Non resident and non -domestic company surcharge and Cess is also to be included while calculating TDS amount .
Courtesy:- CAClubindia-shared files.

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