Tds cess
This query is : Resolved
11 January 2014
Dear Sir
May i know to which persons cess and surcharge will be charge when we deduct the TDS. And the Percentage of cess and surcharge.
Thanking You
Amruth Kumar
May i know to which persons cess and surcharge will be charge when we deduct the TDS. And the Percentage of cess and surcharge.
Thanking You
Amruth Kumar
11 January 2014
Cess will be charged only when TDS is deducted from salary and payments to non-residents.
It is NOT to be charged on TDS from other payments.
It is NOT to be charged on TDS from other payments.
11 January 2014
Dear Sir Thanks very much
When Surcharge will be charge when deducted TDS
Thanking you
Amruht Kumar
When Surcharge will be charge when deducted TDS
Thanking you
Amruht Kumar
27 July 2025
Here’s a clear explanation on **TDS cess and surcharge**:
### 1. **Cess on TDS:**
* **Health and Education Cess (currently 4%)** is levied on the **amount of TDS deducted**.
* This cess is **applicable on all TDS payments** — whether on salary, non-salary payments, or payments to non-residents.
* Example: If TDS amount is ₹1,000, cess will be 4% of ₹1,000 = ₹40, so total TDS payable = ₹1,040.
### 2. **Surcharge on TDS:**
* **Surcharge is applicable only when TDS is deducted on payments to Non-Residents** or on certain specified payments (e.g., interest, dividends) where the payee is a non-resident.
* It is **not applicable on TDS deducted from residents**, whether salary or other payments.
* The surcharge percentage varies based on income slabs of the recipient (e.g., 10%, 15%, 25%, 37% as per slabs).
### Summary:
| Deductee Type | Cess on TDS | Surcharge on TDS |
| ----------------------- | ----------- | ------------------------ |
| Resident (Salary/Other) | Yes (4%) | No |
| Non-Resident | Yes (4%) | Yes (as per income slab) |
---
### 1. **Cess on TDS:**
* **Health and Education Cess (currently 4%)** is levied on the **amount of TDS deducted**.
* This cess is **applicable on all TDS payments** — whether on salary, non-salary payments, or payments to non-residents.
* Example: If TDS amount is ₹1,000, cess will be 4% of ₹1,000 = ₹40, so total TDS payable = ₹1,040.
### 2. **Surcharge on TDS:**
* **Surcharge is applicable only when TDS is deducted on payments to Non-Residents** or on certain specified payments (e.g., interest, dividends) where the payee is a non-resident.
* It is **not applicable on TDS deducted from residents**, whether salary or other payments.
* The surcharge percentage varies based on income slabs of the recipient (e.g., 10%, 15%, 25%, 37% as per slabs).
### Summary:
| Deductee Type | Cess on TDS | Surcharge on TDS |
| ----------------------- | ----------- | ------------------------ |
| Resident (Salary/Other) | Yes (4%) | No |
| Non-Resident | Yes (4%) | Yes (as per income slab) |
---
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