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TDS Rates

vijaya kumar n (JOB) (488 Points)

01 March 2010

Dear all,

Pls provide the New TDS Slab or rate as per Budget-2010 .................???????????????????

Regards

Vijay

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13 Replies

Amir (Learner) (4016 Points)
Replied 01 March 2010

Dear Vijay

SECTION	NATURE OF PAYMENT	Existing threshold limit of payment	Proposed threshold limit of payment (Rupees)


194B	WINNING FROM LOTTERY	5000	10000

194BB	WINNING FROM HORSE RACE	2500	5000

194C	CONTRACT	20000 per contract	30000 per contract
		50000 per annum	75000 per annum

194D	INSURANCE	5000	20000
	COMMSSION


194H	COMMSSION/BROKERAGE	2500	5000

194I	RENT	120000	180000

194J	PROFESSIONAL/TECHNICAL	20000	30000

These amendments are proposed to take effect from 1st July, 2010. [Clauses 35, 36, 37, 38, 39, 40, 41 of Finance Bill 2010]

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vijaya kumar n (JOB) (488 Points)
Replied 01 March 2010

Dear Amir,

Thanks for reply and Rates are same or not???????????????

Amir (Learner) (4016 Points)
Replied 01 March 2010

Bhai I guess rates are same just limits have been enhanced............

C.Balaji (Learner) (1867 Points)
Replied 01 March 2010

Yes.....Mr.Amir brother is rite.........same rates just the limits changed....

C.Balaji (Learner) (1867 Points)
Replied 01 March 2010

change in tds provisions:-

1. increase in exemption limits: (w.e.f. 1-7-10)

section old limit new limit

194B (winnings from lottery) Rs.5000 Rs.10000

194BB (WINNINGS FROM HORSE RACES) Rs.2500 Rs.5000

194C (contractor) Rs.20000 (sinle payment) Rs.30000

Rs.50000 (in full year) Rs.75000

194D (Insurance commission) Rs.5000 Rs.20000

194H (Brokerage and commission) Rs.2500 Rs.5000

194I (Rent) Rs.120000 Rs.180000

194J (professional fees) Rs.20000 Rs.30000

2. interest rate for failure to deduct tax at source : 1.5% p.m. (earlier 1% p.m.)

3. section 203(3) and 206C(5) ommitted w.r.e.f. 01-04-10 (regarding no requirement for TDS/TCS certificate if deducted/ collected on or after 01-04-2010)

Source: Anshu Agarwal.....

/forum/change-in-tds-provisions-2010-71083.asp

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Changdeo (Satpru) (24 Points)
Replied 02 March 2010

TDS RATE FOR 2010 - 2011

Attached File : 46 tax calculator 2009.xls downloaded: 305 times

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(Guest)

Below are the complete details from www.forum4finance.com

Budget proposes hike in threshold limits for TDS

Budget 2010-11 has proposed a hike in threshold limits for deduction of tax from various payments including those to contractors, fees for professional or technical services, winnings from lottery or crossword puzzle and winnings from Horse Race.

The threshold limit for withholding tax of various payments are proposed to be raised to adjust for inflation and also to reduce the compliance burden of deductors and taxpayers, a Revenue Department official said.

The hike in threshold does not cover all payments for which tax deduction at source (TDS) is mandatory. However, the quantum of threshold increase has been at least 50 per cent for the payments that had been selected, the official noted.

The Finance Minister, Mr Pranab Mukherjee, had in his Budget speech noted that the threshold limits of payments below which tax is not deductible at source have remained unchanged for a long time and hence the proposed move to rationalise the thresholds.

In the case of payment to contractors, the threshold limit is proposed to be raised from Rs 20,000 to Rs 30,000 per transaction and from Rs 50,000 to Rs 75,000 (annual limit). For insurance commission, the threshold limit is proposed to be hiked to Rs 20,000, a four-fold increase from the existing limit of Rs 5,000.

For rent payments, the threshold limit is proposed to be increased to Rs 1,80,000 (Rs 1,20,000). In the case of fees for professional and technical services, the threshold limit is to be hiked to Rs 30,000 (Rs 20,000).

The threshold limit changes are to come into effect from July 1, 2010. No withholding of tax is required to be made if the payments do not exceed prescribed threshold limits.

The proportion of TDS to the gross direct taxes collection had been dwindling from a level of over 80 per cent in the late eighties to a level of about 27 per cent in 2007-08.

Although the direct tax pie had seen a remarkable growth ever since the economy opened up in the early nineties, the fall in the proportion of TDS to gross direct tax revenues was a source of concern for policy makers.

In 2007-08, the Government initiated a series of legislative and administrative steps on the TDS front, which seem to have paid some dividends.

From a level of 27 per cent in 2007-08, the proportion of TDS collections to gross direct tax revenues climbed to 30 per cent in 2008-09 and to 35 per cent in 2009-10. The steps include increase in the number of TDS commissionerates from 4 to 16 across the country.

Even as the threshold limits for withholding tax are proposed to be revised upwards, some tax experts reckon that the quantum of increase was marginal.

“The cost of compliance for SMEs and small taxpayers is very high today. The proposed hike in threshold limits is marginal. The same holds true for the proposed increase in tax audit limit. It is very marginal when you consider that the earlier limits were introduced in 1984,” Mr Aseem Chawla, Partner, Amarchand & Mangaldas said.

Threshold for the purpose of deducting TDS has been increased with effect from July 1, 2010 in view of rising inflation and reducing compliance burdens (See table).

LESS TDS			Figures in Rs
Section reference	Particulars of payment	Existing threshold	Proposed threshold
194B	Winnings for lottery or crossword puzzle	5,000	10,000
194BB	Winnings from horse race	2,500	5,000
194C	Payment to contractor	20,000 (single)	30,000 (single)
194D	Insurance commission	50,000 (aggregate)	75,000 (aggregate)
194H	Commission or brokerage	5,000	20,000
194I	Rent	2,500	5,000
194J	Fees for professional or technical services	120,000	180,000

CA Anshu Agarwal (B€ @LW@¥$ ]-[@Pp¥) (1832 Points)
Replied 02 March 2010

Originally posted by : C.Balaji
	change in tds provisions:- 1. increase in exemption limits: (w.e.f. 1-7-10) section old limit new limit 194B (winnings from lottery) Rs.5000 Rs.10000 194BB (WINNINGS FROM HORSE RACES) Rs.2500 Rs.5000 194C (contractor) Rs.20000 (sinle payment) Rs.30000 Rs.50000 (in full year) Rs.75000 194D (Insurance commission) Rs.5000 Rs.20000 194H (Brokerage and commission) Rs.2500 Rs.5000 194I (Rent) Rs.120000 Rs.180000 194J (professional fees) Rs.20000 Rs.30000 2. interest rate for failure to deduct tax at source : 1.5% p.m. (earlier 1% p.m.) 3. section 203(3) and 206C(5) ommitted w.r.e.f. 01-04-10 (regarding no requirement for TDS/TCS certificate if deducted/ collected on or after 01-04-2010) Source: Anshu Agarwal..... /forum/change-in-tds-provisions-2010-71083.asp

please re-consider the third line as below:

3. section 203(3) and FIRST PROVISO TO 206C(5) ommitted w.r.e.f. 01-04-10 (regarding no requirement for TDS/TCS certificate if deducted/ collected on or after 01-04-2010)

CA Anshu Agarwal (B€ @LW@¥$ ]-[@Pp¥) (1832 Points)
Replied 02 March 2010

Originally posted by : C.Balaji
	change in tds provisions:- 1. increase in exemption limits: (w.e.f. 1-7-10) section old limit new limit 194B (winnings from lottery) Rs.5000 Rs.10000 194BB (WINNINGS FROM HORSE RACES) Rs.2500 Rs.5000 194C (contractor) Rs.20000 (sinle payment) Rs.30000 Rs.50000 (in full year) Rs.75000 194D (Insurance commission) Rs.5000 Rs.20000 194H (Brokerage and commission) Rs.2500 Rs.5000 194I (Rent) Rs.120000 Rs.180000 194J (professional fees) Rs.20000 Rs.30000 2. interest rate for failure to deduct tax at source : 1.5% p.m. (earlier 1% p.m.) 3. section 203(3) and 206C(5) ommitted w.r.e.f. 01-04-10 (regarding no requirement for TDS/TCS certificate if deducted/ collected on or after 01-04-2010) Source: Anshu Agarwal..... /forum/change-in-tds-provisions-2010-71083.asp

please refer to second point also:

the follwoing is new provision:

Without prejudice to the provisions of sub-section (1), if any such person, principal officer or company as is referred to in that sub-section does not deduct the whole or any part of the tax or after deducting fails to pay the tax as required by or under this Act, he or it shall be liable to pay simple interest,—

(i) at one per cent. for every month or part of a month on the amount of such tax from the date on which such tax was deductible to the date on which such tax is deducted; and

(ii) at one and one-half per cent. for every month or part of a month on the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid,

this shall also be applicable w.e.f. 01-07-2010

CA Anshu Agarwal (B€ @LW@¥$ ]-[@Pp¥) (1832 Points)
Replied 02 March 2010

please consider correct spelling "omitted" instead of "ommitted".

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CA Anshu Agarwal (B€ @LW@¥$ ]-[@Pp¥) (1832 Points)
Replied 03 March 2010

please visit the follwoing;

/forum/new-and-old-tds-provisions-71577.asp

Pawan Kr. Tomar (CA) (169 Points)
Replied 05 March 2010

Hello Anshu,

Can u provide me Link or TDS Rate chart (Complete set) which is applicable for CA FINAL MAY-10 Exams..

Thanks

CA Anshu Agarwal (B€ @LW@¥$ ]-[@Pp¥) (1832 Points)
Replied 05 March 2010

Originally posted by : PAWAN
	Hello Anshu, Can u provide me Link or TDS Rate chart (Complete set) which is applicable for CA FINAL MAY-10 Exams.. Thanks