New TDS rates chart 2009-2010

TDS- Tax deducted at source is one of the tax collecting method by goverment from assessee.Here it is the responsibility of the payer to deduct a certain percentage as prescribed by law and pay the tax within the stipulated period to government.

The tds rates hasbeen revised from  01.10.2009 passed in finance act(2)2009., Following are the hightlights of new tds rates amendment.

1. Surcharge and cess are removed and tds should be deducted on basic rate for resident tax payers. But Salary payment is subject to the dedction of cess
2. The receipient is a Transport operator,ie, engaged in the business of plying hiring or leasing goods carriages and he furnishes his PAN to the payer ,TDS rate is NIL.If PAN is not quoted TDS rates will be 1% for individual/HUF,2%if the recepient is other than individualUP TO 31.03.2009
3. From 01.04.2010, The TDS rates will be 20% if the PAN No is not quoted in all cases
4. Surcharge on individual assessee/HUF already removed for whole financial year 2009-10.

The new tds rates chart

In case of parntership firm there is a difference in excemption limit for sec 194c , the rset of the things are same as first table.

In case of Local Authority there is a difference in excemption limit for section 194c , the rest of the things are same as first table.

In case of individual /HUF there is a differemce in tds rate and excemption limit under section 194c, rest of the things are same as 1st table for individual /HUF

When is surcharge and cess is applicable as per new tds rates

1. Payment made to a non resident company below 1 crore cess is applicable.
2. Payment made to a non resident company above 1 crore surcharge @ 2.5 % cess 2+1 is applicable.
3. .Cess is applicable for payment made to non resident non corporate.
4. Cess is applicable for salary payment to resident , non corporate.

Due date of Payments of TDS

Tax deducted , should be paid to government within seven days from the last day of the month of deduction.Where as the amount deducted for the month of march should be paid on or before the due date of filing income tax return.

Consequence of failure in deducting tax from source .

The failure in deduction of tax from source will lead to dis-allowance of claim of entire expenditure pertaining to TDS and its addition to total income as provided u/s.40(a)(ia) of the income tax Act along with the interest and penalty as per IT act 1961.