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TDS on Rent (Rate)

CA Ajit Gajera (Practicing Chartered Accountants) (124 Points)

20 February 2010

HI All,

I have a Query regarding TDS Rate on Rent.

my rent amount is so small up to oct - 09 but after that it is more than 1,20,000/-

than what is the rate for rent before oct & after oct.

should i deduct with new rate on all the year,s rent ?

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4 Replies

Ratan Deep Saxena (Asstt Manager (Accounts & Finance)) (2998 Points)
Replied 20 February 2010

TDS rates has been proposed to be changed by Finance Minister in Budget 2009 .Basically following changes has been done in the TDS rates effective from 01.10.2009

No surcharge and cess on tax deducted on non-salary payments made to resident taxpayers.so now onwards(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.Surcharge on individual and HUF assessee has already been abolished for full year fy 2009-10.
Basic TDS rates for section 194 C (Payment to contractors) and 194I (payment of rent) has been changed (given in table)
Section 194C has been replaced with new section with less ambiguities.(details are available here (TDS ON JOB WORK U/S 194C AMENDED FROM 01.10.2009)

The rate of TDS will be 20 per cent in all cases, if PAN is not quoted by the deductee w.e.f. 1.04.2010

NEW TDS RATES FROM 01.10.2009 PASSED IN FINANCE ACT(2) 2009 PASSED ON 19.08.2009
Particulars			NEW TDS RATES%
Section	Nature of Payment	CUT OFF AMOUNT	INDL/HUF	OTHER
194A	Interest from a Banking Company	Rs. 10,000/- p.a	10.00
194A	Interest other than from a Banking Co.	Rs. 5,000/- p.a	10.00
194C	Payment to sub-contrctor/Advertisement contracts	Rs.20,000/- per contract or Rs. 50,000/- p.a	1.00	2.00
194C	other Contractors	Rs.20,000/- per contract or Rs. 50,000/- p.a	1.00	2.00
194C	transport contractors engaged in business of plying, hiring or leasing goods carriages.		Nil *
194H	Commission or Brokerage	Rs. 2,500/- p.a	10.00
194I	Rent other than Plant, Mach.& Eqp.	Rs. 1,20,000/- p.a	10.00
194I	Rent of Plant , Machinery & Equipments	Rs. 1,20,000/- p.a	2.00
194J	Professional Charges	Rs.20,000/-p.a	10.00
* The nil rate will be applicable if the transporter quotes his PAN. If PAN is not quoted the rate will be 1% for an individual/ HUF transporter and 2% for other transporters upto 31.3.2010
** The rate of TDS will be 20 per cent in all cases, if PAN is not quoted by the deductee w.e.f. 1.04.2010
No surcharge and cess is to be added from 01.04.2009 on tax deducted on non-salary payments made to resident taxpayers. It means that surcharges & cess is not be included in basic TDS rates various situation are tabulated in table given below
VARIOUS SITUATION SURCHARGE CESS APPLICABILITY
STATUS		PAYMENT	SUR CHARGE	CESS
Resident	Corporate	Other than Salaries	N	N
Resident	Non-corporate	Other than Salaries	N	N
Resident	Non- Corporate	Salaries	N	Y
Non-Resident	Corporate	<= 1 crore	N	Y
Non-Resident	Corporate	> 1 crore	Y	Y
Non-Resident	Non-Corporate		N	Y
https://taxclubindia.com/NEWS/2009/09/tds-rates-2009-10-changes-in-tds-rates/
https://www.simpletaxindia.org/2009/07/new-tds-rate-fy-09-10-after-budget.html
TCS RATES FOR FINANCIAL YEAR 2009-10
Particulars			TCS RATES%
Section	Nature of Payment	CUT OFF AMOUNT	INDL/HUF	OTHER
206C	Scrap	-	1.00%	1.00%
206C	Tendu Leaves	-	5.00%	5.00%
206C	Timber obtained under a forest lease or other mode	-	2.50%	2.50%
206C	Any other forest produce not being a Timber or tendu leave	-	2.50%	2.50%
206C	Alcoholic Liquor for Human Consumption	-	1.00%	1.00%
206C	Paking lot, toll plaza, mining & quarrying	-	2.00%	2.00%