TDS Rates

Dear Vijay

These amendments are proposed to take effect from 1st July, 2010. [Clauses 35, 36, 37, 38, 39, 40, 41 of Finance Bill 2010]

Read more: https://www.taxguru.in/budget-2010/rationalisation-of-provisions-relating-to-tax-deduction-at-source-tds.html#ixzz0gyrqnfIg
 

Dear Amir,

                  Thanks for reply and Rates are same or not???????????????

Bhai I guess rates are same just limits have been enhanced............

Yes.....Mr.Amir brother is rite.........same rates just the limits changed....

change in tds provisions:-

1. increase in exemption limits: (w.e.f. 1-7-10)

section                                                                  old limit                             new limit

194B     (winnings from lottery)                           Rs.5000                           Rs.10000

194BB  (WINNINGS FROM HORSE RACES) Rs.2500                           Rs.5000

194C      (contractor)                                        Rs.20000 (sinle payment)  Rs.30000

                                                                             Rs.50000 (in full year)      Rs.75000

194D     (Insurance commission)                       Rs.5000                              Rs.20000

194H     (Brokerage and commission)              Rs.2500                              Rs.5000

194I        (Rent)                                                 Rs.120000                          Rs.180000

194J         (professional fees)                          Rs.20000                             Rs.30000

 2.   interest rate for failure to deduct tax at source : 1.5% p.m. (earlier 1% p.m.)

3.  section 203(3) and 206C(5) ommitted w.r.e.f. 01-04-10 (regarding no requirement for TDS/TCS certificate if deducted/ collected on or after 01-04-2010)

Source: Anshu Agarwal.....

/forum/change-in-tds-provisions-2010-71083.asp
 

TDS RATE FOR 2010 - 2011
 

Below are the complete details from www.forum4finance.com

Budget proposes hike in threshold limits for TDS

Budget 2010-11 has proposed a hike in threshold limits for deduction of tax from various payments including those to contractors, fees for professional or technical services, winnings from lottery or crossword puzzle and winnings from Horse Race.

The threshold limit for withholding tax of various payments are proposed to be raised to adjust for inflation and also to reduce the compliance burden of deductors and taxpayers, a Revenue Department official said.

The hike in threshold does not cover all payments for which tax deduction at source (TDS) is mandatory. However, the quantum of threshold increase has been at least 50 per cent for the payments that had been selected, the official noted.

The Finance Minister, Mr Pranab Mukherjee, had in his Budget speech noted that the threshold limits of payments below which tax is not deductible at source have remained unchanged for a long time and hence the proposed move to rationalise the thresholds.

In the case of payment to contractors, the threshold limit is proposed to be raised from Rs 20,000 to Rs 30,000 per transaction and from Rs 50,000 to Rs 75,000 (annual limit). For insurance commission, the threshold limit is proposed to be hiked to Rs 20,000, a four-fold increase from the existing limit of Rs 5,000.

For rent payments, the threshold limit is proposed to be increased to Rs 1,80,000 (Rs 1,20,000). In the case of fees for professional and technical services, the threshold limit is to be hiked to Rs 30,000 (Rs 20,000).

The threshold limit changes are to come into effect from July 1, 2010. No withholding of tax is required to be made if the payments do not exceed prescribed threshold limits.

The proportion of TDS to the gross direct taxes collection had been dwindling from a level of over 80 per cent in the late eighties to a level of about 27 per cent in 2007-08.

Although the direct tax pie had seen a remarkable growth ever since the economy opened up in the early nineties, the fall in the proportion of TDS to gross direct tax revenues was a source of concern for policy makers.

In 2007-08, the Government initiated a series of legislative and administrative steps on the TDS front, which seem to have paid some dividends.

From a level of 27 per cent in 2007-08, the proportion of TDS collections to gross direct tax revenues climbed to 30 per cent in 2008-09 and to 35 per cent in 2009-10. The steps include increase in the number of TDS commissionerates from 4 to 16 across the country.

Even as the threshold limits for withholding tax are proposed to be revised upwards, some tax experts reckon that the quantum of increase was marginal.

“The cost of compliance for SMEs and small taxpayers is very high today. The proposed hike in threshold limits is marginal. The same holds true for the proposed increase in tax audit limit. It is very marginal when you consider that the earlier limits were introduced in 1984,” Mr Aseem Chawla, Partner, Amarchand & Mangaldas said.

Threshold for the purpose of deducting TDS has been increased with effect from July 1, 2010 in view of rising inflation and reducing compliance burdens (See table).

Originally posted by : C.Balaji
	change in tds provisions:- 1. increase in exemption limits: (w.e.f. 1-7-10) section                                                                  old limit                             new limit 194B     (winnings from lottery)                           Rs.5000                           Rs.10000 194BB  (WINNINGS FROM HORSE RACES) Rs.2500                           Rs.5000 194C      (contractor)                                        Rs.20000 (sinle payment)  Rs.30000                                                                              Rs.50000 (in full year)      Rs.75000 194D     (Insurance commission)                       Rs.5000                              Rs.20000 194H     (Brokerage and commission)              Rs.2500                              Rs.5000 194I        (Rent)                                                 Rs.120000                          Rs.180000 194J         (professional fees)                          Rs.20000                             Rs.30000    2.   interest rate for failure to deduct tax at source : 1.5% p.m. (earlier 1% p.m.) 3.  section 203(3) and 206C(5) ommitted w.r.e.f. 01-04-10 (regarding no requirement for TDS/TCS certificate if deducted/ collected on or after 01-04-2010)   Source: Anshu Agarwal..... /forum/change-in-tds-provisions-2010-71083.asp

please re-consider the third line as below:

3.  section 203(3) and FIRST PROVISO TO 206C(5) ommitted w.r.e.f. 01-04-10 (regarding no requirement for TDS/TCS certificate if deducted/ collected on or after 01-04-2010)
 

Originally posted by : C.Balaji
	change in tds provisions:- 1. increase in exemption limits: (w.e.f. 1-7-10) section                                                                  old limit                             new limit 194B     (winnings from lottery)                           Rs.5000                           Rs.10000 194BB  (WINNINGS FROM HORSE RACES) Rs.2500                           Rs.5000 194C      (contractor)                                        Rs.20000 (sinle payment)  Rs.30000                                                                              Rs.50000 (in full year)      Rs.75000 194D     (Insurance commission)                       Rs.5000                              Rs.20000 194H     (Brokerage and commission)              Rs.2500                              Rs.5000 194I        (Rent)                                                 Rs.120000                          Rs.180000 194J         (professional fees)                          Rs.20000                             Rs.30000    2.   interest rate for failure to deduct tax at source : 1.5% p.m. (earlier 1% p.m.) 3.  section 203(3) and 206C(5) ommitted w.r.e.f. 01-04-10 (regarding no requirement for TDS/TCS certificate if deducted/ collected on or after 01-04-2010)   Source: Anshu Agarwal..... /forum/change-in-tds-provisions-2010-71083.asp

 please refer to second point also:

the follwoing is new provision:

Without prejudice to the provisions of sub-section (1), if any such person, principal officer or company as is referred to in that sub-section does not deduct the whole or any part of the tax or after deducting fails to pay the tax as required by or under this Act, he or it shall be liable to pay simple interest,—
 

(i) at one per cent. for every month or part of a month on the amount of such tax from the date on which such tax was deductible to the date on which such tax is deducted; and
 

(ii) at one and one-half per cent. for every month or part of a month on the amount of such tax from the date on which such tax was deducted to the date on which such tax is actually paid,

this shall also be applicable w.e.f. 01-07-2010

please consider correct spelling "omitted" instead of "ommitted".

please visit the follwoing;

/forum/new-and-old-tds-provisions-71577.asp

Hello Anshu,

Can u provide me Link or TDS Rate chart (Complete set) which is applicable for CA FINAL MAY-10 Exams..

Thanks