Amendments in TDS rates

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CA Abhishek (Querist)
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14 August 2009 what is the amendments and effective TDS rate applicable for whole FY 09-10. how can we check on Income tax india or other website about the details of such amendments.

CA. Gurdeep Singh Chawla

CA. Gurdeep Singh Chawla (Expert)
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15 August 2009 Rationalisation of TDS rates w.e.f 01-010-2009:

A. Sec 194 I :-It is proposed to rationalise and reduce the TDS rates on rental payments as under:

(a) 2% for the use of any machinery or plant or equipment,

(b) 10% for the use of any land or building or furniture or fittings for all persons.

B. Sec. 194C :- In order to reduce the scope for disputes regarding classificaton of contract as sub contract, it is proposed to specify the same rate of TDS for payments to both contractors as well as sub-contractors. To rationalise the TDS rates and to remove multiple classifications it is also proposed to provide same rate of TDS in the case of payment for advertising contracts. To avoid hardship to small contractors/sub-contractors most of whom are organized as individuals/HUFs, it is proposed to prescribe following rates of TDS:

(a) 1% where payment for a contract are to individuals/HUF

(b) 2% where payment for a contract are to any other entity.

** The rate of TDS will be 20 per cent in all cases, if PAN is not quoted by the deductee w.e.f. 1.04.2010.

C. In order to ease the computation of TDS, it is proposed to remove surcharge and cess on tax deducted on non-salary payments made to resident taxpayers.

CA Abhishek

CA Abhishek (Querist)
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15 August 2009 Thanks Gurdeep...

Actually i need to reply by presenting back up document... is there any publication in the internet so that i can find out and let the client understand. in case it has not been provided anywhere in the internet, tell me the publication information so that i can check it and make him understand...

CMA Arif Farooqui

CMA Arif Farooqui (Expert)
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16 August 2009 194-I: Rental Payments
Revised Rates
 Plant and Machinery = 2%
 Land or building or furniture or fittings to anyone = 10%
194-C: Contracts
Revised Rates
Contracts to Individuals/HUF = 1%
Contracts to others = 2%
these rates are effective from 1-10-09

CA Abhishek

CA Abhishek (Querist)
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16 August 2009 Can anybody hel me out about how can i get these details in any publications

CA Binal Shah

CA Binal Shah (Expert)
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17 August 2009 u can easily search anything on google or like sites,by just searching directly the topic, e.g. in ur case search for latest tds rates for F.y.2009-10, u'll get it

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