TDS rates applicable

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survesh

survesh (Querist)
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29 September 2009 Hi,
Please send me the TDS rates for FY 2009-10 for all Catigeories.

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Prashant

Prashant (Expert)
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29 September 2009 Pl check fild uploaded by me 45_tds_new_1_10_09.doc

CA.ViVeK M ACA

CA.ViVeK M ACA (Expert)
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29 September 2009 194C- Under this section earlier there was same Rate of TDS in respect of Payment to all the class of the Assesses. Now finance minister has changed the rates and provided that that any person shall deduct tax at source at the rate of one per cent,if the payee is an individual or a Hindu undivided family or at the rate of two per cent. in the case of any other person, on payment to a resident contractor for carrying out any work.
194-I- Under this section Earlier TDS was required to be deducted @ 10% if the same was in respect use of any machinery or plant or equipment this rate is now been reduced to 2% w.e.f. 01.10.2009. Earlier there were two rates in respect of use of any land or building (including factory building) or land appurtenant to a building (including factory building) or furniture or fittings at the rate of fifteen per cent for the where the payee is an individual or a Hindu undivided family and twenty per cent, where such payee is a person other than an individual or a Hindu undivided family. Now there is a uniform rate of 10% in respect of Payment for use use of any land or building (including factory building) or land appurtenant to a building (including factory building) or furniture or fittings for type of Assesses.
Clause Description Prior to Finance Billâ€™2009 Mentioned in Finance Billâ€™2009
Clause 60 194C of the Income-tax Act relating to deduction of tax at source on payment to contractors and sub-contractors If certain persons make payment for carrying out any work to a contractor then tax is deductible at source at the rate of one per cent, in the case of payment for advertising contract and two per cent, in the case of any other contract. Further, tax is deductible at source at the rate of one per cent. When a contractor makes a payment to a sub-contractor. The section further provided that no tax shall be deductible at source on payment or credit up to twenty thousand rupees. However, if the aggregate payment or credit exceeds fifty thousand rupees in a year then tax is deductible at source. The provisions give exemption from tax deduction at source on payment made to a sub-contractor during the course of business of plying, hiring or leasing goods carriages on fulfillment of certain conditions Sub-section (1) of the proposed amendment provides that any person shall deduct tax at source at the rate of one per cent,if the payee is an individual or a Hindu undivided family or at the rate of two per cent. in the case of any other person, on payment to a resident contractor for carrying out any work.

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