Tax deductecd at sources Rate foe f.y. 2010-2011

In Budget 2010 ,TDS rates has not been changed and only cut off amount has been proposed to be increased in few cases .I have prepared TDS rate charts for Most commonly used TDS sections.The Increased Limits are yet two be passed and it is proposed to be effective from 01.07.2010.I will updates the rates after the Finance Bill is passed by the parliament and notified.

Earlier following changes has been done in through Finance Act 2009 in TDS rates effective from 01.10.2009

1. No surcharge and cess on tax deducted on non-salary payments made to resident taxpayers.Tax should be deducted on Basic rate only given in respective section.No education cess or Surcharge is to be deducted except in the case of salary where Tax should be deducted after including the Education cess.(chart is given below where is surcharge and cess is required to be included in TDS rates)
2. .Surcharge on individual and HUF assessee has already been abolished for full year fy 2009-10.
3. Basic TDS rates for section 194 C (Payment to contractors) and 194I (payment of rent) has been changed (given in table)
4. Section 194C has been replaced with new section with less ambiguities.

The rate of TDS will be 20 per cent or rate provided in respective section which ever is higher , in all cases, if PAN is not quoted by the deductee w.e.f. 1.04.2010.

 

TDS(tax deducted at Source) Rate chart For Financial Year 2010-11
Made To resident (www.simpletaxindia.org)(downlaod this all charts)		Threshhold		Company,firm.Co-op Society,Local authority	HUF , Individual
Section	Nature of payments	up to 30.06.10	wef 01.07.10	Rate in %
194A	Interest From Bank	10000	10000	10	10
194A	Other Interest	5000	5000	10	10
194B	Winning from Lotteries	5000	10000	30	30
194BB	winning from Horse races	2500	5000	30	30
194C	Payment to Contractors , Pay to Advt/Sub Contr , Payment to Transportor	20000(50000 in a year)	30000 (75000 IN year)	2	1
194D	Insurance Commission	5000	20000	10	10
194H	Commission/Brokerage	2500	5000	10	10
194I	Rent-property	120000	180000	10	10
194I	Rent-Plant / Machinery	120000	180000	2	2
194J	Professional Fees	20000	30000	10	10
Note -1	For Section 194C Rs. 20000 for single payment & Rs. 50000/75000 for aggregate Payment during a financial year.
Note -2	Payment Made to Transportor ,Tds is Not required If pan is provided By the Transportor
Note-3	Surcharge and Cess Is not applicable on tds from 01,04,2009 on any payment made to resident.
Note-4	If pan not provided by the deductee then rate as per above table or 20% which ever is higher is to be charged.(effective from 01.04.2010 section 206AA)