TDS Rates • For payment to residents and domestic companies, there will be no surcharge and cess on the basic rate of TDS. This simplifies TDS rates to a great extent. • There are changes in TDS rates for payments to contractors and payment of rent. Those are explained below. TDS on payment to contractors: Section 194C
- The proposed amendment is effective from 01-10-2009.
- Rate of deduction: Rate of deduction is now based on the status of payee and not on the basis of type of payment. Earlier the rate was 2% for payment to contractors and 1% for payment to sub-contractors and advertisement contracts. Now the rate is 1% for payments made to individuals and HUF and 2% in other cases.
- Contractor manufacturing is now covered as “work” and is liable to TDS under this section.
- This is defined as manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from such customer, but does not include manufacturing or supplying a product according to the requirement or specification of a customer by using material purchased from a person, other than such customer.
- If the invoice mentions value of material separately then such value will be excluded for calculation of TDS, in all other cases TDS will apply to total invoice value.
- Persons carrying business of plying, hiring or leasing goods carriages.
- Need not deduct TDS if contractor furnishes PAN.
- Will have to furnish information as may be prescribed.
TDS on Rent: Section 194I The proposed amendment is effective from 01-10-2009.
| Rent | Earlier | Now |
| Plant and Machinery | 10 | 2% |
| Land building | 15% for Individuals / HUF 10% and 20% for others | 10% |
eTDS Statement Filing: Section 200 • The proposed amendment is effective from 01-10-2009. Currently section 200 specifies quarterly filing of eTDS statements. • This is changed and now CBDT can specify the periodicity for which the statements are to be filed.
Processing of eTDS Statements: Section 200A The proposed amendment is effective from 01-04-2010. This new section introduces processing of eTDS Statements in the following manner.
• Sum deductible shall be calculated after making adjustment of arithmetical errors and apparent incorrect claims.
• Interest will be calculated.
• From the above actual amount paid will be deducted to arrive at TDS payable or refundable.
• Deductor will be informed about the TDS payable or refundable.
• Time limit for the processing is within one year of the financial year of filing of eTDS statement.
• CBDT will make a scheme of centralized processing of e-TDS Statements.
Time limit for Penalty proceedings: Section 201
- The proposed amendment is effective from 01-04-2010.
- A person is deemed to be an assesee in default for failure to deduct TDS in whole or part. • The order for such default now will have to be passed.
- Within two years from the end of the financial year in which the eTDS statement is filed.
- Within four years from the end of the financial year in which payment is made or credit is given, in any other case.
- For financial year commencing on or before 01-04-2007, this time limit is upto 31st March 2011.
TDS Rate when PAN not available: Section 206AA
• The proposed amendment is effective from 01-04-2010.
• If deductee fails to furnish PAN to deductor, the deductor shall apply highest of the following rates for deducting TDS. (i) at the rate specified in the relevant provision of this Act; or (ii) at the rate or rates in force; or (iii) at the rate of 20%.
• Form 15G/ 15H declaration for no deduction of tax will become invalid if PAN is not mentioned therein.
• PAN will have to be mentioned in bills, vouchers and other documents communicated between deductor and deductee.
• If deductee furnishes invalid PAN or submits PAN belonging to someone else, it will amount to non furnishing of PAN.
Other Changes
• No TDS on zero coupon bonds issued by scheduled banks: Section 194A. Effective 01-04-2009
• No TDS for payments from New Pension Scheme: Section 197A. Effective 01-04-2009.
• Quarterly statement for interest paid without deducting TDS is now to be submitted for “such periods as may be prescribed” : Section 206A Effective 01-10-2009.
• Quarterly statement regarding tax collection at sources are now to be submitted for ” such periods as may be prescribed”: Section 206C Effective 01-10-2009.
Form 24Q:
| Male | Female | Senior Citizen | Tax (%) |
| For Income Between 0 to 1,60,000 | For Income Between 0 to 1,90,000 | For Income Between 0 to 2,40,000 | 0 |
| For Income Between 1,60,001 to 3,00,000 | For Income Between 1,90,001 to 3,00,000 | For Income Between 2,40,001 to 3,00,000 | 10 |
| For Income Between 3,00,001 to 5,00,000 | For Income Between 3,00,001 to 5,00,000 | For Income Between 3,00,001 to 5,00,000 | 20 |
| For Income above 5,00,001 | For Income above 5,00,001 | For Income above 5,00,001 | 30 |
| Surcharge | 0 | ||
| Education Cess | 3 | ||
Form 26Q:
| Section | Nature of Payment | Status | Tax (%) |
| 193 | Interest on Debentures & Securities | 10 | |
| 194 |
Deemed Dividend
|
10 | |
| 194A |
Other Interest
> Aggregate sum exceeding Rs. 10,000 for Banking Co’s , etc.per person during the financial year. > Aggregate sum exceeding Rs. 5,000 per person during the financial year |
10 | |
| 194B | Lottery/Crossword Puzzle > Rs.5,000 | 30 | |
| 194BB | Winnings from Horse Race > Rs. 2,500 | 30 | |
| 194C | Contracts to Transporter, who has provided a valid PAN | 0 | |
| Contracts to Individuals/HUF | 1 | ||
| Contracts to others | 2 | ||
| 194D | Insurance Commission > Rs.5,000 | 10 | |
| 194EE | Withdrawal from NSS > Rs.2,500 | 20 | |
| 194F | Repurchase of Units by MF/UTI | 20 | |
| 194G | Commission on Sale of Lottery Tickets > Rs.1,000 | 10 | |
| 194H | Commission or Brokerage > Rs.2,500 | 10 | |
| 194I | Rent > Rs.1,20,000 p. a. Rent of Plant & Machinery |
2 | |
| Rent of Land, Building, Furniture, etc | 10 | ||
| 194J | Professional or Technical Fess > Rs.20,000 | 10 | |
| 194LA | Compensation on Compulsory Acquisition of immovable property >Rs.1,00,000 during the financial year | 10 | |
| Surcharge | 0 | ||
| Education Cess | 0 | ||
| Note: If there is no PAN details, then from 1st April 2010 TDS will be deduted at the rate of 20%. | |||
Form 27Q:
| Section | Nature of Payment | Status | Tax (%) |
| 194E | Payment to nonresident sportsmen or sports association | 10 | |
| 195(a) | Income from foreign exchange assets payable to an Indian citizen | 20 | |
| 195(b) | Income by way of long-term capital gain referred to in sec. 115E | 10 | |
| 195(c) | Income by way of Short-term capital gains u/s. 111A | 15 | |
| 195(d) | Income from other long-term capital gains | 20 | |
| 195(e) | Income by way of interest payable by Government/Indian concern on money borrowed or debt incurred by Government or Indian concern in foreign currency | 20 | |
| 195(f) | Royalty payable by Government or an Indian concern in pursuance of an agreement made by non-resident with the Government or the Indian concern after March 31, 1976, where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book on a subject referred to in the first proviso to section 115A(1A) to the Indian concern or in respect of computer software referred to in the second proviso to section 115(1A), to a person resident in India – | ||
| 1.Where the agreement is made before June 1, 1997 | 30 | ||
| 2.Where the agreement is made after May 31, 1997 but before June 1, 2005 | 20 | ||
| 3.Where the agreement is made on or after June 1, 2005 | 10 | ||
| 195(g) | Royalty (not being royalty of the nature referred to in (e) sub para) payable by Government or an Indian concern in pursuance of an agreement made by non-resident with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to matter included in the industrial policy, the agreement is in accordance with that policy | ||
| 1.Where the agreement is made after March 31, 1961 but before April 1, 1976 | COMPANY | 50 | |
| OTHERS | 30 | ||
| 2.Where the agreement is made after March 31, 1976 but before June 1, 1997 | 30 | ||
| 3.Where the agreement is made after May 31, 1997 but before June 1, 1997 | 20 | ||
| 4.Where the agreement is made on or after June 1, 2005 | 10 | ||
| 195(h) | Fee for technical services payable by Government or an Indian concern in pursuance of an agreement made by non-resident with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to matter included in the industrial policy, the agreement is in accordance with the policy – | ||
| 1.Where the agreement is made after February 29, 1964 but before April 1, 1976 | COMPANY | 50 | |
| OTHERS | 30 | ||
| 2.Where the agreement is made after March 31, 1976 but before June 1, 1997 | 30 | ||
| 3.Where the agreement is made after May 31, 1997 but before June 1, 2005 | 20 | ||
| 4.Where the agreement is made on or after June 1, 2005 | 10 | ||
| 195(i) | Any other income | COMPANY | 40 |
| OTHERS | 30 | ||
| 196A | Income in respect of Units of Non-residents | 20 | |
| 196B | Income and Long-term Capital gain from units of an Off shore fund | 10 | |
| 196C | Income and Long-term Capital Gain from Foreign Currency Bonds or shares of indian companies | 10 | |
| 196D | Income of Foreign Institutional Investors for Securities | 20 | |
| Surcharge ( On Tax) | Applicable for Foreign Companies if payment/credit exceeds Rs.1 crore of such companies | 2.5 | |
| Education Cess | on Tax deducted Plus Surcharge | 3 | |
Form 27EQ:
| Collection Code | Nature of Purchase | Tax (%) |
| 6CA | Alcoholic liquor for human consumption | 1 |
| 6CB | Timber obtained under a forest lease | 2.5 |
| 6CC | Timber obtained under any mode other than forest lease | 2.5 |
| 6CD | Any other forest product not being timber or tendu leave | 2.5 |
| 6CE | Scrap | 1 |
| 6CF | Parking Lot | 2 |
| 6CG | Toll plaza | 2 |
| 6CH | Mining and quarrying | 2 |
| 6CI | Tendu leaves | 5 |
| Surcharge (On Tax) |
Applicable for Foreign Companies if collections exceeds Rs.1 crore of such companies | 2.5 |
| Education Cess | Applicable for Foreign Companies | 3 |
Download TDS Rate Calculator Pre Budget for the Period from 01.04.2009 to 30.09.2009
Dear sir,
I have a kiln(brick manufactur). Govt. Officers demands us TCS code 6ch on royalty from 2007_08to 2016_17.
Can this tcs/tds code 6ch is applicable to kiln (ient bhatta) please define
Is TDS applicable towards purchase of Medical equipments
What is the TDS rate applicable to a female contractual employee in a private company? What is the limit?
I am a femal employee working in a private company on contractual basis. I would like to know what is the TDS deduction rate and the limit for a female employee in a private company?
i am company and one vendor tds deducted u/ 194c but paid u/s 194J and form 16A appear appear sec 194j, can i revise the return or what best solution, plz suggest us.
Thanks Rajiv
Sir,
Kindly clarify the following: In respect TDS for the accounting year 2008-09 paid by the deductor on 25/10/2011. can v get the refund.
regards
anuguru
What is the rate of tax collected source on sale of scrap if no pan number is there ?
Please reply.
I was finding TDS rate for insurance commission. I am a individual person. I want to calculate TDS on my commission. but dint get how to calculate, but from your site i got much more information about tax rate for current Assessment year. Thanks for creating such a informative site.
I am maintaining my books of accounts on cash basis but my client maintained its books of accounts on accrual basis & deduct TDS in F.Y. 2009-10 & provide the TDS certificate for the same in F.Y.2009-10 but I record my same income on cash basis in F.Y. 2010-11. So please confirm whether it is allowed to me in F.Y.2010-11.
i am paying commission in germany. i am indian Citizen. what is the tds rate applicable for germany. what rate should i deduct from commission.
Can you please confirm whether education cess need to add on TDS payments for the FY 2009-2010? If Yes, can you please help me in getting such a circular?
We have issued order for hiring of car for a fixed period. The hire charges include (1) rental charges for the car, (2)running expenses on per KM basis and (3) wages of driver. Bills are payable on monthly basis. Pl. advice whether TDS is to be deducted u/s.194 C or u/s. 194 I of the Income Tax Act.
hello sir,
plz tel me whether tds is deducted for foreign remittance to usa and china for freight,if yes then at what rate,plz reply as soon as possible
Dear Sir,
If (transporter)a unit of private limited com.provide the service of hiring of local sight seen in delhi,then what will be the tds rate for him. will he treated as individual or as other type. I mean the rate will apply 1% or 2% for him.
Thanking u in advance for your support.
Thanks,
Manish,9990912097
(a) I am working as a Professional Software Consultant in India from April 2010 and as per the co. offer I will get Rs 2 lacs pm. (b) I need to raise a Bill/Invoice to the Co every Month. (c) Should I need to add Tax in my Bill/Invoice. (d) What is the Tax Rate I should Add. (e) Should I need to deposit the tax I added in my Bill every Month or Qtrly. (f) When I should deposit the tax to Govt, i.e. after I get my payment ? (g) Company told they will deduct @ 10% on my monthly Bill/Invoice. (h) I am yet to get registered with Central Excise/Service Tax dept. (i) What are the Forms required to submit. Please advise me. Regards. NB Raju
We had given contract to local persone for shifting (Lebour charges & Transportation charges) our office. & he charged Rs.36K for the same & we paid him cash without deduct TDS. Is it ok as per income tax ACT? what amount should be paid in cash without deduct tDS?
Please provide me a Formate of Delaration for Non Deduction of TDS on a Transpoter who provide me a valid PAN. and instrct me about if any additional rules and regualtion.
What is 15ca/15cb is any remittance paid to foreign agent as commission against export order we hv to deduct any charges, if not what is the clause of plea reason.
Is TDS or any deduction to be charges against commission pay/paid to overseas agent against export orders which hv been shows on shipping bill ?
Is TDS to be dedcuted in the service provided by Clearing farwrding agent? Is clearning farwarding agent will be treated as TRANSPORTER
Gentleman
Please clarify this matter
Company Director’s Bonus & Salary more than Rs. 30,000/- can be paid in Cash at a time or it can be paid in two parts of Rs. 15,000/-
i am dutybound to collect income tax at source on sale of scrap.i want to no if there is a limit on sale proceeds that attract surcharge or surcharge is leviable on each sale irrespective of amount
Our vender is providing technical services for medical equipments. They are forcing us to deduct TDS on their bill @2% instead of 10% which our CA advice us to duduct.
It is mentioned that NIL TDS is applicable if “transporter quotes his PAN” – Pls illustrate, if payment is made in cash and paid to the driver on behalf of the transporter.
“The nil rate will be applicable if the transporter quotes his PAN.”
please describe this sentence in detail and what TDS rate apply for contractor’s payment?
TDS now is without E.cess & Surcharge.,
Will for Payee TDS made by deductor be deducted from IT Payable
1.Incl sur & Cess
2.Excl sur & Cess
Pls Clarify
Contractor / Sub-contractor in transport business ( If PAN not Quoted) – The Rate of TDS is 20%. Pls check n Clarify
If expenses bill upto 30.09.09 is booked in the m/o Nov-09, then what TDS rate is applicable? Old or new TDS rates
If expenses bill upto 30.09.09 is booked in the m/o Nov-09, then what TDS rate is applicable? Old or new TDS rates?
if any body deduct TDS from Transporter after 1 st oct09 & deposit the same on due date, then what provision are there?
Tax mentioned in Sl.no.2 & 3 u/s 194A for other entity @20% is wrong.After passing of budget it is 10% for FY 2009-10
Dear Sir
I am working in a IMFL Manufacturing unit in accounts dept.While making slae of IFML we r charging TCS+S.Charge+Cess.Some one is telling with effect from 1st Sept’09 there is no S.Chargeand Cess.I asked my tax people they r telling it is effect from 1st Oct’09.I am greatful if u clarify at the earliest.
Regards
Hi Sandeep,
Waiting for reply
we are paying server rent to US vendor for providing space on server where at internet website is hosted/placed. Our CA says that Article 7 of US-India DTAA deals with “Business Profits” but we covered under Article 12 relating to “Royalty”.
Tell me about our TDS / Tax liability on the payment of server RENT to US vendor and other implications of Article 12.
Please any one can let me know whether surcharge & cess will apllicable for TCS or not?
Is no surcharge & cess applicable also for TCS in budget 2009? reply me the correct answer including notification of budget 2009.
is form 15I for no TDS has been deducted for a person having not more than 2 vehicles.This provision is still applicable in present.
we are paying server rent to US vendor for providing space on server where at internet website is hosted/placed. Our CA says that Article 7 of US-India DTAA deals with “Business Profits” but we covered under Article 12 relating to “Royalty”.
Tell me about our TDS / Tax liability on the payment of server RENT to US vendor and other implications of Article 12.
What are the consequences if retun of AY 05-06 is field after 31.03.07 (i.e after the date of filing belated return) kindly explain indetail
One assessee ” A ” engaged in transport business got transport contract from the principal ” B ” . ” A ” does not have any vehicle of its own; but engages hired vehicles from the market. If ” A ” submits his PAN to ” B ” i.e his principal, will ” B ” deduct TDS from ” A ” as per the new provisions. Please answer.
Please confirm whether TDS/CESS/SURCHARGE need to be deducted OR NOT w.e.f. 01-OCT-2009 in case of interest amount on 8% Savings(Taxable) Bonds( issued by RBI) exceeding the limit of Rs.160000/- (for Male), Rs.190000/-(for Female) and Rs.240000/-(Sr.Citizen) or not. I think this comes u/s-193 of the I.T.Act.
Your reply will be highly appreciated.
Rajesh,
There is a new circular/notification wherein you need to get a certificate from CA before making payment to non resident assessees. Since there is nexus with India, Income Tax that prevails in India is applicable.Please check your DTAA (Double Taxation Avoidance Agreements) that prevails between India and US. If you dont deduct TDS the said expenses will be disallowed and there will attract penal provisions.
Ragesh Parameswaran
But my CA is not able to provide me certificate that, TDS is not applicable and, i am not able to send payment vai wire transfer to my vender due to this. What should I do.
Sandeep, But, we are paying from India.
Yes, our vender is in US, but our CA is forcing me to detuct the TDS, while US vender says that he is not involving in Indian Tax laws, so he is not allowing me to detuct TDS.
I want to know from what date is this rate list applicble??
I mean whether i should deduct surcharge and cess os of now or will it be abolished from october only….?
Will the TDS is applicable in India on payment made to US dedicated server vendor and how much is applicable.
Yes you are right
It has been mentioned Surcharge & Cess are not required for TDS deduction… think its not correct.
Further the applicability of 20% tax deduction for non-submission of PAN is effective from FY 1st April ’10