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Surcharge on TDS

sai krishna (Student) (186 Points)

12 January 2009

Can any one tell me about the applicability of Surcharge on TDS.

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8 Replies

CA CS CIMA Prakash Somani (Landmark Group) (23502 Points)
Replied 12 January 2009

It depends on the income. the rate for indian co's, firms it is 10% streight and for individuals whose TI exceeds Rs 10 Lakh is 10%. For foreign co's it is 2.5%

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sai krishna (Student) (186 Points)
Replied 12 January 2009

Hi prakash

Can u tell me what do u mean by income for this purpose i.e income of the person who is receiving the payment or the person who is receiving the services

CA. Pushkar Sharma (Chartered Accountant) (278 Points)
Replied 12 January 2009

In case of TDS income alwayes means income of receiver of payment. which you can easily judge.

Atul Kumar (CA) (504 Points)
Replied 12 January 2009

Sai is saying right. But the list is illustartive. U can refer www.incometaxindia.gov.in or Direct Tax Ready Reckoner for details.

Pavan Jain S (Chartered Accountant) (1575 Points)
Replied 13 January 2009

If payment is made to any company or partnership firm and the gross amount paid or payable during the year exceeds Rs. 1 crore, then surcharge is applicable.

Similarly, for payment made to Individuals, HUF, etc., if the gross payment during the financial year exceeds Rs. 10L, surcharge is appicable.

Payer is not expected to know or ascertain the total income of the payee and it is impractical also. For ascertaining the applicability of surcharge, the payer must see whether the payment made or to be made to the payee in the concerned FY exceeds the aforesaid limits.