Under the scheme of deduction of tax at source as provided in the Income-tax Act, every person responsible for payment of any specified sum to any person is required to deduct tax at source at the prescribed rate and deposit it with the Central Government within the specified time. However, no deduction is required to be made if the payments do not exceed prescribed threshold limits.

In order to adjust for inflation and also to reduce the compliance burden of deductors and taxpayers, it is proposed to raise the threshold limit for payments mentioned in sections 194B, 194BB, 194C, 194D, 194H, 194-I and 194J as under:

Existing threshold limit of payment Proposed threshold
limit of payment
194C CONTRACT 20000 per contract 30000 per contract
50000 per annum 75000 per annum
194D INSURANCE 5000 20000
194I RENT 120000 180000

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

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0 responses to “Union Budget 2010 Rationalised provisions relating to Tax Deduction at Source (TDS)”

  1. CA Vijay Kumar.G says:

    Due date for payment of TDS- Salaries is subsequent month 7th of the month in which it is deducted

  2. Sagar says:

    Please tell me the salaried TDS payment which date of payment deposit of Tax Dept.

  3. Dr.LCBansal says:

    Till govt. does something on this, u can do two things.Either U can fill form 15G before tax deduction or U should do fixed deposit in 4 or 5 different banks.
    Thanks,urs sincerely,Dr.LCBansal

  4. Gowri Nagarajan says:

    I am a lady aged 63 years. I have an annual income of Rs. 4 Lacs, almost all from Bank deposits. Considering the current income tax slabs of “1.9 lacs- No Tax and Up to 5 Lacs 10% tax”, my tax commitment for AY 11-12, works out to only about Rs. 21,000. As banks are deducting 10% TDS on all interest income over Rs. 10,000, I end up paying Rs 40,000 as tax through TDS. Why not the govt raise the TDS limit in this case to 20000, to match with latest tax slabs? Can I give From-15G to avoid avoid excessive TDS? Can some body help me on this?

  5. vikas says:

    Does the threshhold limit in case of transporter where the PAN is unavailable exists ? i.e. one time payment of Rs 15000 will not attract TDS even if PAN is not quoted. Kindly comment.

  6. Manmohan Sharma says:

    Last date of E-T.D.S Return for Q4.

    24Q4 15 june 2010
    26Q4 15 june 2010
    27EQ 15 may 2010

  7. Manmohan Aharma says:

    Last date of E-T.D.S Return for Q4.

    24Q4 15 june 2010
    26Q4 15 june 2010
    27EQ 15 may 2010

  8. S.R.L. ARASIMHAN says:

    Mywife is a senior citizen without taxable income.
    She has fewFSr citizen FD’S intwo banks amounting to Rs. 3 lakhs, rs. 1 lakh and rs. 5o,000/

    she had been submitting From 15 Htill last year
    The bnks are insisting now, from April,2010 fort a PAN CARD NO.

    If so, is she required to file Annual “NIL” returns every year.
    Pls advise.

  9. VP Venkatraman says:

    What is the threshold limit for Interest on Fixed Deposits of both Banks and Companies.

  10. Bryan Ferrao says:

    Rent agreement says Rs 15000/- as rent to be paid to lessor. Rs 1500/- Building Maintenance to be paid to The maintenance in charge. IN this case is TDS applicable on the amount of Rs 1500/- per month. IF so at what is the percentage and what is the maiximum limit ?

  11. Bryan Ferrao says:

    In the rent agreement, if the rent is mentioned as 15000 per month and building maintenance Rs 1500/- to be paid to the The maintenance in charge, Is TDS applicable on the maintenace payable if the amount is below 20000 per annum.

    Section 194 C says limit is 20000 I am not clear

  12. kalpesh says:

    pls. conform the date of Last date of E-T.D.S Return for Q4.

    26Q4,24Q4,27EQ4 and 27Q4 (foregin payment)

  13. kalpesh says:

    E-T.D.S Return for the Last Quater (Q4) What date of 26Q4,24Q4,27EQ and 27Q4 (foreigen payment). Pls. reply this Question.

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