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TDS rate chart for Financial Year 2010 -11 w.e.f 01.07.2010

8 May 2010 2 Comments

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
Sr No	Section	Nature of payments	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