Under Tax deduction at source scheme ,as prescribed in income tax act every person is responsible for payment of any specified sum to any person is required to deduct tax at source and deposit it with central govt with in specified time. if prescribed limit of payment do not exceed there is no need for deduction of tax
In the Budget 2010-11 , it is proposed to increase the threshold limit in sections 194B,194BB,194C,194D,194H,194I,and 194 J to reduce the tax burden of tax payers. There is no change in tax rate only change is on threshold limit of tax deduction.
However we would like to provide you a complete chart of TDS applicable for the financial year 2010-11. The amendment on threshold limit is proposed to take effect from 1st july 2010
| Sr No | Section | Nature of payments | % TDS | Payment Threshhold | ||
| Company,firm.Co-op Society,Local authority | HUF , Individual | up to 30.06.10 | wef 01.07.10 | |||
| 1 | 193 | Interest on securities | 10 | 10 | - | - |
| 2 | 194 | Dividents | 10 | 10 | - | - |
| 3 | 194A | Interest from a banking company | 10 | 10 | 10000 | 10000 |
| 4 | 194A | Interest other than interest on securities | 10 | 10 | 5000 | 5000 |
| 5 | 194B | Winning from Lotteries or Crossward Puzzles | 30 | 30 | 5000 | 10000 |
| 6 | 194BB | winning from Horse races | 30 | 30 | 2500 | 5000 |
| 7 | 194C | Payment to Contractors , Sub contractors | 2 | 1 | 20000 for Single transaction | 30000 for Single transaction |
| 50000 for aggregate of transactions during the Financial year | 75000 for aggregate of transactions during the Financial year | |||||
| 8 | 194D | Insurance Commission | 10 | 10 | 5000 | 20000 |
| 9 | 194E | Payment to non resident Sportsman/Sports association | 10 | 10 | - | - |
| 10 | 194EE | Payment in respect of national savings scheme | 20 | 20 | 2500 | 2500 |
| 11 | 194F | Payment on account of re-purchase of units of mutual Fund | 20 | 20 | - | - |
| 12 | 194G | Sale of Lottory Tiket | 10 | 10 | 1000 | 1000 |
| 13 | 194H | Commission on brokerage | 10 | 10 | 2500 | 5000 |
| 14 | 194I | Rent for the use of land , building, furniture and fixtures | 10 | 10 | 120000 | 180000 |
| 15 | 194I | Rent-For the use of Machinery,plant equipment | 2 | 2 | 120000 | 180000 |
| 16 | 194J | Fees for Professional , techenial services | 10 | 10 | 20000 | 30000 |
| 17 | 194LA | Payment of compensation on acquisition ofcertain immovable property | 10 | 10 | 100000 during the FY | 100000 during the FY |
Please note the following points while deducting TDS
- Rate of TDS will be minimum 20% or normal rate whichever is higher in all cases if pan number is not quoted by deductee wef from April1 2010
- In the case of transporter no TDS is required to deduct if Pan number is submitted by transporter.
- Surcharge and cess is not applicable in case of payment made to resident w.e.f 01.04.2010
- Interest on late payment of TDS has been increased from 12 to 18 % per annum wef 1 st july 2010
pls send the tds,esi, pf rate.
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This is very usefull pls read it
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Sir,
Plase sent me TDS rate on tranmission for media.
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sir
plz sand me late payment of tds colculation with numerical exampil as soon as
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plese sir send my email id new tds rate for tds wef 01.07.2010
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s’ please send me service tax calculetion in excel sheet & tds calculetion salary & sub contractors & rent with intrest
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