TDS rate

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 March 2010 During the year 2008-09 we paid a sum of Rs. 9,00,000 to individual (suppose a contractor) and TDS deducted @2.06%. We also paid advance of Rs.2,00,000 (prepaid) for the year 2009-10 and TDS deducted @2.06%.

Now the query comes that tax should have been deducted @2.266% on the payment of Rs. 2,00,000 and also on payment of Rs 9,00,000 @[ 2.266-2.06].

Since the payment for the year 2008-09 does not exceeds Rs 10,00,000/- and amount of Rs. 2,00,000 pertains to next financial year.Pls suggest and if possible give reference of law,

Shyam Lal Naik

Shyam Lal Naik (Expert)
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20 March 2010 Surcharge should have been deducted.

In the scheme of TDS, allocation of the amount to different financial year not possible.