Revised TDS Rates 11.3.2010

Nature of Payment Section
IT SC# EC Total IT SC EC Total IT SC# EC Total IT SC EC Total
1 Salary 192 SC not applicable.
Only levy EC
2 Interest other than interest on securities 194A 10 1.00 0.33 11.33 10 - - 10.00 20 2.00 0.66 22.66** 10 - - 10.00
Payment in excess
of Rs.5,000 p.a
(Note 5)
3a Payments to Contractors (other than 3b to 3e) 194C 2 0.20 0.07 2.27 1* - - 1.00 2 0.20 0.07 2.27 2 - - 2.00
3b Payments to transporters, where PAN is not available 194C 2 0.20 0.07 2.27 20
(Note 1) - - 20.00 2 0.20 0.07 2.27 20
(Note 1) - - 20.00
3c Payments to transporters, where PAN is available 194C 2 0.20 0.07 2.27 0* - - 0.00 2 0.20 0.07 2.27 0* - - 0.00
3d Payments to Advertising Contractors 194C 1 0.10 0.03 1.13 1* - - 1.00 1 0.10 0.03 1.13 2* - - 2.00
3e Payments to Sub-contractors 194C 1 0.10 0.03 1.13 1* - - 1.00 1 0.10 0.03 1.13 2* - - 2.00
4 Commission or Brokerage 194H 10 1.00 0.33 11.33 10 - - 10.00 10 1.00 0.33 11.33 10 - - 10.00
Payment in excess
of Rs.2,500 p.a
5a Rent of Land / Building / Furniture 194I 15 1.50 0.495 16.995 10* - - 10.00 20 2.00 0.66 22.66 10* - - 10.00
Payment in excess
of Rs.1,20,000 p.a
5b Rent of Plant, Machinery or Equipment 194I 10 1.00 0.33 11.33 2* - - 2.00 10 1.00 0.33 11.33 2* - - 2.00
Payment in excess
of Rs.1,20,000 p.a
6 Fees for Professional & Technical Services / Royalty 194J 10 1.00 0.33 11.33 10 - - 10.00 10 1.00 0.33 11.33 10 - - 10.00
Payment in excess
of Rs.20,000 p.a
NOTES :
1
3
4
5
*
**
#
In case of Firm, the rate will be 11.33 percent including SC and EC.
Rates effective from 1 October 2009.
Banking company and co-operative society engaged in the banking business making payments of the aggregate amount of less than INR 10,000 in a financial year are not liable to deduct tax
NEW TDS RATES APPLICABLE (AS PROPOSED IN THE FINANCE BILL, 2009)
Pre enanctment of Finance
Bill, 2009
Post enactment of Finance
Bill, 2009
Particulars If recipient is an Individual or HUF If the recipient is a Domestic Company or Firm Criteria for
Deduction
Pre enanctment of Finance
Bill, 2009
Post enactment of Finance
Bill, 2009
Surcharge would be levied in case of Individual and HUF if total income exceeds INR 1 million and in case of domestic companies and firms it will be levied if total income exceeds INR 10 million.
2
S.
No.
Payment in excess
of Rs.20,000/- per
contract or
Rs.50,000 p.a
As per slab rates prescribed for women, senior citizens and other Individuals.
No TDS on contract for manufacturing / supply of product according to requirement of customer by using material purchased from a person other than such customer
Above rates are not applicable in case of payments made to foreign companies and non-residents. In case of payments to foreign companies, SC a should be levied at 2.5 percent (where total income of the foreign
company exceeds INR 10 million) and EC should be levied at 3 percent. However, in case of payments to other non-residents, only EC of 3 percent should be levied.
For Advance Tax computation: Advance tax is not required in case amount of tax payable for the entire year is less than INR 10,000/-. Further. EC should be applied in respect of advance tax payments by all taxpayers.
However, SC should be levied only in case of advance tax payments by domestic and foreign companies.
Higher TDS rate of 20% for not furnishing correct PAN: Requirement to furnish PAN is compulsory to deductor otherwise TDS shall be deducted @20%. W.E.F. 01.04.2010