30 December 2010
Rate is 20 % only on account of the following reasons:-
There is no reference of section 206AA in the two sub-sections of section 2 of the Finance Act, 2010 as well as in the First Schedule to the Finance Act.
Education cess is imposed by sub-sections (11) and (12) of section 2 of the Finance Act, 2010. Even in these sub-sections reference of section 206AA is not made. Consequently, the rate of 20 per cent under section 206AA cannot be increased by surcharge and education cess.
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