New TDS rate applicable from 01.04.2010

Save Share

This query is : Resolved

Ravi Kumar Rajgaria (Querist)

01 April 2010 From 01.04.2010 TDs need to be deducted if PAN not provided @ 20% or normal rate whichever is higher?

Is this also applicable for Salary u/s 192?

If it is applicable please guide how it will be calculated?

CA Ashok Kumar Sahu

CA Ashok Kumar Sahu (Expert)

01 April 2010 yes it's also applicable for salary u/s 192

CA SIDHARTH HIRALAL PATNI

CA SIDHARTH HIRALAL PATNI (Expert)

01 April 2010 Yes, It is given that it will cover all the sec.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

01 April 2010 No.it is not covered for salary under sec.192.you need to deduct normal tax slabs

Shyam Lal Naik

Shyam Lal Naik (Expert)

02 April 2010 Rate of TDS in case PAN is not furnished is governed by Section 206AA. The said section applies to all cases of TDS, including TDS on salary, ie. Section 192.

Hence, TDS on salary shall be deducted at normal rate or 20%, whichever is higher, if PAN not furnished.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

02 April 2010 Yes.Correct agreed

Shyam Lal Naik

Shyam Lal Naik (Expert)

02 April 2010 Rate of 20% or the normal rate, which ever is higher.

In case of salary, the rate of tax is to be arrived at by way of computation. The ratio of tax deductible to Net salary should be taken as normal rate. The higher of this normal rate 20% will be applicable for the purpose of withholding tax.

In my view, the rate of TDS upto taxable salary of Rs. 1600000/- shall be 20%. Normal rate in excess thereof.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now