TDS

This query is : Resolved

CA.GAURAV SACHWANI (Querist)
Follow

26 November 2009 Is Surcharge under income tax is also applicable on the new rates of tds or is withdrawn like the education cess.Please Confirm

Jagdish Narayan Sawant

Jagdish Narayan Sawant (Expert)
Follow

26 November 2009 Surcharge is withdrawn completely.
but education and higher education cess is to be deducted while deducting tds on salary.
in case of other payments edu cess and higher edu cess not to be considered for deducting tds

CA. Rishabh Mittal

CA. Rishabh Mittal (Expert)
Follow

26 November 2009 Both surcharge & education cess has been removed from TDS rates. Except, education cess still to be levied on TDS on salary

shakuntala chhangani

shakuntala chhangani (Expert)
Follow

27 November 2009 Hi Gaurav, with due respect to above answers,
surcharge on TDS for the Financial year 2009-10 is applicable only when the recipient is a foreign co. and the payment / credit subject to TDS exceeds Rs. 1 crore(rate of surcharge 2.5% of TDS). in no other case, surcharge is applicable during financial year 2009-10.
education cess and secondary and higher secondary education cess is applicable in the following two cases
1. TDS from payment of salary
2. TDS from payment / credit (other than salary) to a nnon-resident or a foreign co.
Regards, CA Shakuntala Chhangani

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