• Sep
  • 02
  • 2009

Surcharge, Education Cess on TDS for A.Y. 2010-11 / F.Y. 2009-10

Posted In Income Tax | | 36 Comments » Print Friendly and PDF

Surchage, Education Cess and applicability on TDS related to A.Y. 2010-11 (F.Y. 2009-10)?

Undermentioned provisions are applicable for Financial Year 2009-10 (A.Y. 2010-11) and w.e.f. 01.04.2009.

1.      Surcharge:

No Surcharge on TDS in case of payment is made to Resident or Domestic Company

No Surcharge on TDS in case of payment is made to Non Resident other than Foreign Company

2.5% Surcharge on TDS if the recipient is a foreign company and amount exceeds Rs. 1 Crore.

2.      Education Cess

No EC or SHEC on TDS in case of payment is made to Resident or Domestic Company [Other than Salary]

3% EC and SHEC (2% + 1%) on TDS in case of Salary

3% EC and SHEC (2% + 1%) on TDS in case of payment is made to Non Resident

36 Responses to “Surcharge, Education Cess on TDS for A.Y. 2010-11 / F.Y. 2009-10”

  1. Hannan Raz says:

    In case of salaried individuals, if TDS is present, what is the proceedure to calculate Education Cess and surcharge..???

  2. admin says:

    Its based on yearly

  3. Sandip Kumar rana says:

    I want to know the Rent TDS exemptions limit is based on monthly or yearly

  4. Sandip Kumar rana says:

    This Sandip i want to know that TDS exemptions which was given in Chart that is based on monthly or Yearly…….


    TDS on salary is calculated on estimated basis and distributed on monthly basis.
    i.e. if u r a male citizen & your annual salary is Rs.15000*12 = Rs.180000, the tax shall be calculated on estimated annual basis, then distributed to 12 months.
    i.e 180000-160000=20000 is the taxable salary, 20000*10%=2000+3%=Rs.2600 is annual tax.
    Monthly tax is Rs2600/12 = Rs.217.
    Thats it.

  6. harmeet says:

    I have a small query.

    Monthly TDS is deived from the (net tax payable- tax paid) divided by remaining months. Tax liability is calculated on TDS total taxable income. Education cess is calculated on the tax liabilty and then net tax payable is calculated.

    Now for monthly calculation we are calculating the monthly TDS and education cess.

    TDS amount will have Cess included in it. suppose for a month we override the value of TDS from actual 1030 to 800. in this education cess was 30. but since we havent change cess it was still 30.

    I just wanted to know is it mandatory to have tds and cess ration fix every month in other words cess will always be equal to 3/103 of tds each month?

  7. pankajq says:

    i work in a mnc and want to know the following things:

    1) we have deducted TDS from salary on 05.03.10 but not yet deposited TDS in Bank. now what shall we do.

    2) how can we divide tds of Rs. 18530/- in income tax and education cess. the above amount of tds is of salary.

  8. education cess and surcharge will not applicable on tds.. i want to know the date from which it is applicable ?

  9. Srikant Kumar says:

    From when E.Cess and H.E.Cess is not applicable on TDS on contrator/sub-contractor ? Is it from 1-4-2009 or 1-10-2010?

  10. GM Raaj says:

    from when its applicable…

  11. ravi says:

    why education cess is impose?

  12. G.GOSWAMI says:

    Kindly inform the authority unde which no Education cess or SHEducess is applicable on TCS for the year 2009-2010.

  13. sujata says:

    how the am of tds will be deposited if the deductee have no pan no

  14. Cess is applicable.

  15. YOGESH says:

    is there surcharges and sur charges is applicable on tds on salary

  16. ravindra bhati says:

    we are getting Rs. 800/- + DA as conveyance allowance monthly. DA is exempt from i/tax if it has no retirement benefit. should i/tax be deducted on our conveyance allowance. please advise.

  17. Virugan Pillai says:

    Is Non Deduction of TDS apply to all transporter? or it is limited for transporter defined in 44AE.

  18. let me know the TDS payment says:

    It is very helpful for students those who are studying CA,CS,ICWA

  19. Sukant Kumar Sahoo says:

    Please let me know the TDS rates and Ceducation Cess and H.Edu. Cess applicable or not.


  20. 1.What rate % of tds in case if we
    are a contractor / transporter and
    payment to sub-contractor/transporter.

    2.What rate % of tds in case if we
    are a invidual/properietorship firm and payment to contractor/transporter

  21. You have to deduct TDS at basic rate on TDS U/s. 194C & under section 194J.

  22. praful says:

    From 01/10/2009 while deducting tds u/s 194 C or J for payments made to individual or company whether we have to deduct tds on basic pay plus cess 3% or only on basic?

  23. It was provided in finance act 2009 i.e. budget.

  24. Gaurav says:

    I have checked the notification on I.T. site but no such notification found. Can u pls provide the supportive link regarding this circullar…which u relese in ur site…..if u can pls provide to all the subscribers….by that all can be updated with it….

  25. You can see the finance act it was provided in finance act 2009.

  26. Foe Non Salary payment to resident Assessee with effect from 01.04.2009 only basic need to be deducted.

  27. harsha says:


    wef 01-10-09 while deducting tds on u/s 194 C/J/H/A/I for payments made to individual or company whether we have to deduct tds basic + cess 3%
    only basic?

  28. It was provided in budget only.

  29. No surcharge and cess is to be added from 01.04.2009 on tax deducted on non-salary payments made to resident taxpayers.

  30. Jyoti somaiya says:

    Pls clarify with effect from which date??

  31. Sanjay says:

    Request to share relevant notification / link of the notification.



  32. Vivek Gupta says:


    Can I get any base documents that Surcharge and education cess is not applicable as mentioned in the post.


  33. gautam bhansali says:

    TDS rate include TCS or Sucharge and ED is applicable on TCS for A.Y. 2010-11?
    TDS flat rate is applicabel on 01.04.2009 or 01.10.2009?

  34. manisha says:

    when it is applicable ? w.e.f 19th Aug / 1st ocotber

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