Applicability of Surcharge, Education Cess, SHEC for A.Y. 2010-2011
Surcharge, Education Cess, SHEC for A.Y. 2010-2011
There has been major changes with regard to surcharge, education cess, SHEC, after approval of the finance (No. 2) ACT, 2009.
Peoples are now wondering about surcharge and education cess rates and applicability for A.Y. 2010-2011.
Here is brief to understand the applicability in a very simple manner.
Please note that all rates are applicable w.e.f. 1-4-2009, although finance (No.2) Act approval date is 19th, Aug 2009.
Surcharge on Income Tax: -
Surcharge on income-tax for the assessment years 2009-2010 and 2010-11 will be as follows : -
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A.Y. 2009-10
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A.Y. 2010-11
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Individual/HUF/AOP/BOI if net income does not exceed Rs. 10 Lakh
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NIL
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NIL
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Individual/HUF/AOP/BOI if net income exceeds Rs. 10 Lakh
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10%
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NIL
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Artificial Juridical Person
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10%
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NIL
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Co-operative society, local authority
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NIL
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NIL
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|
Firm if net income does not exceed Rs. 1 Crore
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NIL
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NIL
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Firm if net income exceed Rs 1 Crore
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10%
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NIL
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Domestic company if net income doews not exceed Rs. 1 Crore
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NIL
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NIL
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Domestic company if net income exceeds Rs. 1 Crore
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10%
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10%
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Foreign Company if net income does not exceed Rs. 1 Crore
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NIL
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NIL
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Foreign Company if net income exceeds Rs. 1 Crore
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2.5%
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2.5%
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Surcharge, Education Cess in the case of TDS- For the F.Y. 2009-10, A.Y. 2010-11
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Nature of Payment
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Whether surcharge is applicable
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Whether education cess @ 2% and SHEC @ 1% is applicable
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Salary to a Resident or Non – Resident
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NO
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Yes
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Payment other than salary to a resident
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NO
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NO
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Payment other than salary to a non-resident not being foreign company
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NO
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YES
|
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Payment other than salary to a foreign company (payment or credit subject to TDS does not exceed Rs. 1 Crore
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NO
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Yes
|
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Payment other than salary to a foreign company (payment or credit subject to TDS exceeds Rs. 1 Crore)
|
Yes @ 2.5 of TDS
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Yes
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TDS RATES FOR ACCOUNTING YEAR 2009-10 ONWARDS
TDS RATES FROM 01.10.2009APPLICABLE
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Section Code
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Nature of Payment
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Thresholds Limit to deduct tax
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In case recipient is an Individual / HUF
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If the recipient is other than Individual / HUF
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|
194-A
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Interest other than interest on securities
Interest from Banking Company
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Rs.10,000/- p.a.
|
10 %
|
20 %
|
|
194-A
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Interest other than interest on securities
Interest other than from Banking Company
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Rs.5,000/- p.a.
|
10 %
|
20 %
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194-C
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Payment to Contractor
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Rs.20,000/- Per Single Contract or Rs.50,000/- exceed during the financial year
|
1 %
|
2 %
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|
194-C
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Payment
to Advertising Contractor / Sub Contractor |
Rs.20,000/- Per Single Contract or Rs.50,000/- exceed during the financial year
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1 %
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2 %
|
|
194-C
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Payment to transport contractor / sub contractor
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If PAN Quoted
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NIL
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NIL
|
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194-C
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Payment to transport contractor / sub contractor
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If PAN not quoted
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1%
*20% from 01.04.2010
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2%
*20% from 01.04.2010
|
|
Section Code
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Nature of Payment
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Threshhold Limit to deduct tax
|
In case recipient is an Individual / HUF
|
If the recipient is other than Individual / HUF
|
|
194-H
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Payment of commission or brokerage to resident
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Rs.2,500/- p.a.
|
10 %
|
10 %
|
|
194-I
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Payment of Rent
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Rs.1,20,000/- p.a.
|
10%
*20% from 01.04.2010
|
10%
*20% from 01.04.2010
|
|
194-I
|
Payment of Rent for use of Plant , Machinery or Equipment
|
Rs.1,20,000/- p.a.
|
2 %
*20% from 01.04.2010
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2 %
*20% from 01.04.2010
|
|
194-J
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Payment of professional or technical services
|
Rs.20,000/- p.a.
|
10 %
|
10 %
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Note :
- Surcharge ,Education Cess and Health Cess is not applicable for TDS.
- w.e.f 01-10-2009, the nil rate will be applicable if the transporter quotes his PAN. If PAN is not quoted the rate will be 1% for an individual/HUF transporter and 2% for other transporters up to 31-03-2010
- The Rate of TDS will be 20% in all cases, if PAN is not quoted by the deductee (including transporter) w.e.f. 01-04-2010
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