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tds rates

CA Gnanika (CA ) (485 Points)

05 August 2007

hi i want to know the rates of tds for 2007-08 FY?

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Late CA Sampat Jain (Chartered Accountant) (4772 Points)
Replied 05 August 2007

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pls sent me a/c knowledge

Ravi Kanth (Job) (25 Points)
Replied 09 August 2007

Hi Gnanika, its a lengthy answer. if you are specific in the area, weather salaried etc, its easy for us to answer shortly. Change in Tax Deduction at Source Rates as on April, 06th 2007 The following amendments have been made by the Budget 2007/CBDT in respect of deduction of tax at source and issue of TDS certificate. 1. The rate of deduction of tax at source w.e.f. 1st April, 2007 are as under : (i). Payment to Contractors Tax : 2% Surcharge : 10% of Tax Education Cess : 3% of tax and surcharge. Hence over all rate will be 2.266% if surcharge is applicable otherwise the rate will be 2.06%. (ii). Payment to Sub-Contractor Tax : 1% Surcharge : 10% of Tax Education Cess : 3% of Tax & surcharge Hence over all rate will be 1.133%, if surcharge is applicable and otherwise it will be 1.03%. (iii). Payment of interest A. If paid to a person other than a company Tax : 10% Surcharge : 10% of tax Education Cess : 3% of Tax & Surcharge Overall TDS rate : 11.33% if surcharge is applicable and otherwise 10.30%. B. If paid to a company Tax : 20% Surcharge : 10% of Tax Education Cess : 3% of tax and surcharge Overall TDS rule : 22.66% if surcharge is applicable and otherwise 20.60%. (iv). Payment for Professional/Technical Services/Commission/ Brokerage From 01.04.2007 to 31.05.2007 From 01.06.2007 onwards Tax Rate 5% Tax Rate 10% Surcharge 10% Surcharge 10% Tax Education Cess 3% of the Surcharge Education Cess : 3% of Tax & Surcharge Overall TDS Rate 5.665% if surcharge is applicable otherwise 5.15% Overall TDS rate 11.33% if surcharge is applicable, otherwise 10.30% (v). Payment of Rent for Land and Building A. If paid to an individual or HUF Tax Rate : 15% Surcharge : 10% of Tax Education Cess : 3% of tax & surcharge Overall TDS rate : 16.995% if surcharge is applicable otherwise 15.45% B. If paid to a person other than individual or HUF Tax Rate : 20% Surcharge : 10% of Tax Education Cess : 3% of Tax & Surcharge Overall TDS Rate : 22.66% if surcharge is applicable otherwise 20.60% (vi). Payment of Rent for Plant and Machinery From 01.04.2007 to 31.05.2007 From 01.06.2007 onwards Tax Rate: 15% if paid to individual or HUF : 20% if paid to a person other than Individual and HUF Tax Rate : 10% for all Surcharge :10% Surcharge 10% Tax Education Cess : 3% of Tax and Surcharge Education Cess : 3% of Tax & Surcharge Overall TDS Rate :16.995% or 22.66% if surcharge is applicable otherwise 15.45% or is 20.60% Overall TDS rate 11.66% if surcharge is applicable, otherwise 10.30% (vii) Salaries Tax to be computed at normal rate on the basis of following table. Basic Exemption Rs.1,10,000/- From 1,10,000/- to 1,50,000 @ 10% 1,50,000/- to 2,50,000 @ 20% 2,50,000/- onward @ 30% Surcharge to be levied @ 10% in case taxable income exceeds Rs.10,00,000/-. Education Cess to be added @ 3%. However Basic Exemption for Woman Tax Payers shall be Rs.1,45,000/- and for Senior Citizen Rs.1,95,000/- 2. Education Cess @ 3% is applicable with effect from 1.4.2007. 3. Surcharge for deducting tax at source shall be leviable in case where payment is made to an individual or HUF, AOP or body of individual when aggregate amount paid or likely to be paid and subject to tax deduction exceeds Rs.10 lakhs, in case payment is made to a firm or a domestic company when aggregate amount paid or likely to be paid exceeds Rs.1 crore. In the case of payment to other than a domestic company the surcharge shall be levied @ 2.5%. Applicability of surcharge, in case payment exceeds the above prescribed limit is effective from 01.04.2007. 4. Change in rate of deduction of tax at source on payment of commission, brokerage, professional/technical services, rent shall be effective from 01.06.2007. 5 Applicability of increased limit of Rs.10,000/- for non deduction of tax in respect of payment of interest by bank shall be effective from 01.06.2007. 6. Applicability of leviability to deduct tax at source on payment by individual/HUF having turnover exceeding the limit prescribed in Section 44AB in respect of payment to contractors shall be effective from 1st June, 2007. Thanks & Regards, Ravi