TDS Rate for financial Year 2010-11/ Assessment year 2011-12 and Amendment made by union budget 2010
Increase in thresholds limit of deduction of tax from various payments
This bill proposes to increase various thresholds limit for deduction of tax from various payments like Winning from Lottery or Crossword Puzzle, Winning from Horse Race, Payment to Contractors, Insurance Commission, Commission or brokerage, Rent, Fees for Professional and Technical Services. The proposed amendments w.e.f 1st July, 2009 made under the new provision are summarized as under:
(Amounts in Rs.)
| Section | Nature of Payment | Existing | Proposed |
| 194B | Winning from Lottery or Cross word puzzle | 5,000 | 10,000 |
| 194BB | Winning from Horse Race | 2,500 | 5,000 |
| 194C | Payment to Contractors [per Transaction] | 20,000 | 30,000 |
| 194C | Payment to Contractors [Annual Limit] | 50,000 | 75,000 |
| 194D | Insurance Commission | 5,000 | 20,000 |
| 194H | Commission or Brokerage | 2,500 | 5,000 |
| 194I | Rent | 1,20,000 | 1,80,000 |
| 194J | Fees for Professional and Technical Services | 20,000 | 30,000 |
Consequences of failure to deduct tax, or after deducting failure to pay tax deducted/tax collected at source u/s. 201(1A)
Under the existing provision of section 201(1A) of the Act, where the person does not deduct the tax or after deducting fails to pay the tax, he is required to pay simple interest at the rate of 1% for every month or part of the month. Amendments are proposed to treat the cases of failure to make payment, after deducting the tax at source more severally then the cases of pure failure. The proposed amendment to this section w.e.f. 1st July, 2010 has increased the rate of interest in cases of failure of payment after deduction to 1 1/2% for every month or part of the month till the date on which such tax is actually paid. The rate of interest will remain same at one percent for the cases of actual default of deduction of tax itself.
Certificate for tax deducted or collected u/s. 203 and u/s. 206C
The tax department was proposing to grant the credit of tax at source under their Online Tax Accounting System (OLTAS), completely obviating the necessity to issue certificate of deduction of tax at source and furnishing the same with the tax returns. Accordingly, the Finance Act, 2005, section 203 and section 206C(5) were amended for abolishing the requirement for issuance of the TDS and TCS certificate.
Considering the practical difficulties being encountered, the earlier procedure of issuance of TDS/TCS certificate has been restored.
TDS RATE FOR THE ASSESSMENT YEAR 2011-2012 (in %)
(TDS rates with effect from 1st April 2010)
| Section | Natureof Payment | Threshold limitupto 30th June, 2010 (in Rs.) |
Threshold limit w.e.f. 1st July, 2010 (in Rs.) |
Individual/ HUF/ BOI/ AOP |
Firm | Co- operative Society / Local Authority |
Company |
| 192 | Salary | As per slab | As per slab | Normal Rate (incl. cess) |
N.A. | N.A. | N.A. |
| 193 | Interest on Securities | ||||||
| (1) Interest on Debentures or Securities (Listed) | 2500* | 2500* | 10.00 | 10.00 | 10.00 | 10.00 | |
| (2) Interest on 8% Savings (Taxable) Bonds, 2003 | 10000 | 10000 | 10.00 | 10.00 | 10.00 | 10.00 | |
| (3) Any Other Interest on Securities (Unlisted) | 0 | 0 | 10.00 | 10.00 | 10.00 | 10.00 | |
| 194 | Dividend other than dividend covered by Section 115-O | 2500* | 2500* | 10.00 | 10.00 | 10.00 | 10.00 |
| 194A | Interest other than Interest on Securities (other than below) | 5000 | 5000 | 10.00 | 10.00 | 10.00 | 10.00 |
| Where the payer is | |||||||
| (1) Banking Company | 10000 | 10000 | 10.00 | 10.00 | 10.00 | 10.00 | |
| (2) Co-operative Society engaged in banking business | 10000 | 10000 | 10.00 | 10.00 | 10.00 | 10.00 | |
| (3) Post Office (deposit scheme framed by Central Government) | 10000 | 10000 | 10.00 | 10.00 | 10.00 | 10.00 | |
| 194B | Winning from Lotteries | 5000 | 10000 | 30.00 | 30.00 | 30.00 | 30.00 |
| 194BB | Winnings from Horse Races | 2500 | 5000 | 30.00 | 30.00 | 30.00 | 30.00 |
| * in case of resident only | |||||||
| 194C | Payments to Contractors | ||||||
| (1) In case of Contract/ Sub-Contract/ Advertising | 20000 (Note 1) | 30000 | 1.00 | 2.00 | 2.00 | 2.00 | |
| (2) Contractor/ Sub-Contractor in Transport Business | 20000 (Note 1) | 30000 | NIL( Note 2) | NIL (Note 2) | NIL(Note 2) | NIL(Note 2) | |
| 194D | Insurance Commission | 5000 | 20000 | 10.00 | 10.00 | 10.00 | 10.00 |
| 194E | Non-Resident sportsman/ sports association | 0 | 0 | 10.00 | 10.00 | 10.00 | NA |
| 194EE | Deposits under NSS to Resident/Non-Resident | 2500 | 2500 | 20.00 | 20.00 | 20.00 | NA |
| 194F | Repurchase of Units of Mutual Fund/UTI from Resident / Non-Resident | 0 | 0 | 20.00 | 20.00 | 20.00 | NA |
| 194G | Commission on Sale of lottery tickets to Resident / Non- Resident | 1000 | 1000 | 10.00 | 10.00 | 10.00 | 10.00 |
| 194H | Commission or Brokerage to Resident | 2500 | 5000 | 10.00 | 10.00 | 10.00 | 10.00 |
| 194I | Rent to Residents | ||||||
| (a) Rent for Machinery/ plant/equipment | 120000 | 180000 | 2.00 | 2.00 | 2.00 | 2.00 | |
| (b) Rent for other than in (a) | 120000 | 180000 | 10.00 | 10.00 | 10.00 | 10.00 | |
| Note:-1. This limit is for individual transaction. However, if aggregate payment to a contractor during the year exceed Rs. 50,000 (Rs. 75,000 w.e.f 1tst July, 2010), then tax will be required to be deducted, even where individual transaction is less than the threshold of Rs. 20,000 (Rs. 30,000 w.e.f. 1st July, 2010).2. The Nil rate will be applicable if the transporter quotes his PAN. If PAN is not quoted the rate will be 20%. (Transporter means persons engaged in plying, hiring and leasing of Goods Carriages) | |||||||
| 194J | Fees for professional / technical services to residents | 20000 | 30000 | 10.00 | 10.00 | 10.00 | 10.00 |
| 194LA | Compensation to Resident on acquisition of immovable property | 100000 | 100000 | 10.00 | 10.00 | 10.00 | 10.0 |
| 195 | Payment of other sums to a non-resident | 0 | Rate specified under Part II of First Schedule of Finance Bill, 2010 subject to provisions of DTAA | ||||
| 196B | Income from units (including long term Capital Gain on transfer of such units) to an offshore fund | 0 | 0 | 10.00 | 10.00 | 10.00 | 10.00 |
| 196C | Income from foreign currency bonds or GDR of Indian Company | 0 | 0 | 10.00 | 10.00 | 10.00 | 10.00 |
| 196D | Income of FII from securities not being dividend, long term and short term capital gain | 0 | 0 | 20.00 | 20.00 | 20.00 | 20.00 |
Note:
In order to strengthen the PAN mechanism, it is proposed to make amendments in the Income Tax Act to provide that any person whose receipts are subject to deduction of tax at source i.e., the deductee, shall mandatorily furnish his PAN to the deductor failing which the deductor shall deduct tax at source at higher of the following rates:
(i) the rate prescribed in the Act;
(ii) at the rate in force i.e., the rate mentioned in the Finance Act; or
(iii) at the rate of 20 percent
The above provisions will also apply in cases where the taxpayer files a declaration in form 15G or 15H (u/s 197A) but does not provide his PAN. Further, no certificate under section 197 will be granted by the Assessing Officer unless the application contains the PAN of the applicant.
TCS RATE FOR THE ASSESSMENT YEAR 2011-2012 (in %)
(TCS rates with effect from 1st April 2010)
| Section | Nature of Payment | Threshold Limit (in Rs.) |
Individual/ HUF/ BOI/ AOP |
Firm | Co? operative Society / Local Authority |
Company |
| 206CA | Alcoholic liquor for human consumption and Indian made foreign liquor | 0 | 1.00 | 1.00 | 1.00 | 1. |
| 206CB/ CC/ CD |
Timber obtained by any mode and any other forest produce | 0 | 2.50 | 2.50 | 2.50 | 2.50 |
| 206CE | Scrap | 0 | 1.00 | 1.00 | 1.00 | 1.00 |
| 206CF/ CG/ CH |
Parking lot / toll plaza / mining and quarrying | 0 | 2.00 | 2.00 | 2.00 | 2.00 |
| 206CI | Tendu leaves | 0 | 5.00 | 5.00 | 5.00 | 5.00 |
194C threshold limit of individual contractor please send details
194C threshold limit of individual contractor please send details
amount limits for individual contractor tax payments (1%)
amount limits for individual contractor tax payments (1%)
amount limits for individual contractor tax payments (1%)
Respected Sir,
If we have to make a single payment in a year to a transporter of Rs. 16,000/- and he is not having Pan no. then should i deduct tds or not ? My confusion is that whether a transporter should have PAN no in all cases or else only if his total payments exceeds Rs 75,000/- in a year.
regards
Kunal
i am an insurance agent, i share commission with 3 persons for refering me clients. pls let me know till how much amt i can pay without tds.
can any body tell me tdc on interest which rate calcute
sir i am a govt. servent i want h.r.a.`s rebate my total salary yearly 3.4lakhs what will given recipt of h.r.a. is must
Sir,
I am working in a state govt.managed project known as RASTRIYA MADHYAMIK SHIKSHA MISSION at Bhubaneswar of ODISHA. As per order of Secretary of Odisha Govt. Being the chairman of our society, renovation work of our office has been made of amount Rs.25.00lakhs through departmentally. now my question is wheather we will deduct TDS ON CONTRACT AS some portion of work has been done through subcontractor.
as per sec194I tds should be deducted only rent portion (excluding service tax ) ie.only 100000
Hi,
Kindly confirm if Rent Include Service Tax (100000+10300)=103000.In what we have TDS deduct (Gross or Taxable).
Please confirm ASAP
Send to me rate chat on Id
Thanks
how much interest on tds on salaries after due date monthly
I offer professional web marketing services to a client under a company name(PVT LTD) and used to collect monthly amount of Rs.25000/-. Now i want to take these monthly payments on my Individual name.
Could you please let me know, how to approach the client for change of Account and in which Tax section i will be in ?
How can deduct tds on professional charges if amount is rs.29500 and it is a first bill from consaltancey.
Please send me the late interest rate of contractor services (194C) for the assessment year 2012-13.
PLZ SEND ME CHART RATES OF TDS FOR 2011-12
i working a manufcatue company and we are recived Transport bill 9850/- Without pan , please tell me what TDS RAte , Which amount TDS Deducted on Transporter amount limit
sir,
plz tell me how to change the challan of tds 194c in to 194 j, after deposited online from our bank,
Fees for professional / technical services to residents is exemptable under 194J upto 20000/- proposed is 30000/-. In this regards, who is called as a professional. Managers above grade is treated as a professional ??
how can deduct tcs from a minor quarry owner who remit royalty of rs.25000/-
Q. We are running a school. our landlord is a NRI and we have to pay annual rent about Rs.158000/- in the current FY2011-12. As per sec.194I of the ITAct’1961 TDS on rent paid to resident-individual should be deducted @10% if total rent exceeded to Rs.180000/- per annum ..and @20% in the case of Non-PAN.
Please suggest-
a) what should be the TDS rate in the case of NRI-(Individual) with valid PAN or Non-PAN too ?
b) further, please also clarify what is the threshold limit for tds deduction reg. payment of rent to NRI. Is it the same as mentioned in sec.194I or zero (no minimum limit) ?
c) Is any difference of TDS rate…. if you find any provision in ADT with USA / Canada in such type of payment.
some of the institutes are deducting 10% tds on contracts. The contractors who are involved in services like construction of roads, construction of building, establishment of power grids & other civil nature of work are being deducted TDS @ 10% from their bills. It is correct or it is not. If it is correct why u/s 194 (C) the rate for contract is shown as 2% only.
Sir,
Pls let me know the % of tds to be paid at source for Company for payment of sewerage amount for the financial year 2011-12 Assessment Year.and Can u please tell me in the construction field which is the deduct from the TDS & what is the percentage.
Thanking You.
very useful inforamtion.But the tax information will change from year to year.
during partition of india / pakistan in 1947 muslim population was forced to leave india. they left behind their immovable properties. the authorities in jammu and kashmir set up a department, administered locally, (kept out of state exchequer) to monitor and maintain these properties. this department receives rentals from the authorised occupants of these properties ( land, shops, buildings, houses). is this rental income taxable. which section of income tax act does apply here.
sir,
kindly advice me tds deducts f/y 2010 to 2011 and deposited to challan but not deposited to returns how show tds amounts 26as ca ask for him u can give the trail balance finalized of balance
thanking you
rampravesh
Which form is to be used for filing IT-return for TDS on Professional Fees(194J)?
Can anybody pl guide
Dear Sir
while submitting the e filing (ITR 1) my name given was wrong. however PAN number, amount etc were all correct. I could not file the Revised Return since the system (IT) does not accept Revised return sunder section 139(1). Please advise.
Thanking you
I DEDUCT TDS FOR A.Y.2011-12 BUT NOT PAY TAX & NOT FILING RETURN TILL DATE WHAT ABOUT
IN AUDIT
i am service in bank, my question is , customer invest amount in STDR Capital gain schme and no TDS is tobe deducted on it,
Query: Whether TDS is to be deducted(capital gain scheme) on the amount of interest or it is to be exempted because capital gain scheme amount is exempt.
customer want TDS examption certificate, can i given certificate(under which sec.of it laws). pl advise any printed format availabe.some deposits of Motor excident claim tribunal office and other govertment offices(i.e.police,court etc) their own funds (No PAN No.is given) can exampt of TDS.
I have got my TDS from my organisation but since I swapped my organisation in last Assessment year and although i submitted my form 12B there was a error in TDS which hot deducted . So I have to pay an additional amount . Can this be declared in my organisation for deduction in next assessment year or I have to pay it now . If i have to pay it now , I see many option like advance tax, self assessment etc category so in which category i should pay the remaining amount
plz snd me d tds chart
plz i want tds slab rate 2011-2012,
no query
Pls let me know if i can get Income Tax Exemption on the commission amount paid to the real estate agent, my main source of income is RENTAl INCOME?
plz let me know how to calculate surcharge on winning of lotteries
I am based out in Singapore Travel agent, Selling rates of Indian hotel, is that hotel need to deduct TDS from my commission. i am not paying income tax in india and not ragister in india?
given tds rates are very complex pls give the exact rates of tds
Dear Sir,
How to inditified differance between company & indivisual.
sir,
can you deduct rent for aminities pls solve my query
Sir,
Can Individual deduct a tds on Bill received from Professionals?
pls solve my query
thanks
regads
Vinayak
whether TDS on rent in case of joint property where the owner of the property is 50-50%, and if the the combined rent exceeds the ceiling but not the individual rent, in that case is it necessary to deduct TDS on rent at source. Eg. if the total rent received by the joint landlords is Rs.18500.00 per month, do we have to deduct tax on rent at source during the current financial year i.e. 2011-12.
We want to have full set of software on TDS which has to generate challan, annexure,cerficate and Q return.
will you help me out
Sir,
pl. let me know the % of tds to be paid at source for non-company for payment of
seneirage amount for the financial year 2011-12 Assessment Year
Thanking you,
we are taking a scorpio from a private party for travelling purpose of our company pesons for this every month we are paying 25000/- so at end of the year how i will be calculate the tds amount and in which nature i will pay it to the govt please say me immedialty
Dear sir
We are hiring a scopio vehicle from a individual person for this we are going to pay every month rupees 25000/- so please say me how i will calculate the tds and in which nature of payment i will deposit this amount.
TDS RATE FOR THE ASSESSMENT YEAR 2011-2012 (in %)
(TDS rates with effect from 1st April 2010)
Section Nature
of Payment
Threshold
limit
upto
30th June,
2010
(in Rs.)
Threshold
limit w.e.f.
1st July,
2010
(in Rs.) Individual/
HUF/ BOI/
AOP Firm Co-
operative
Society /
Local
Authority Company
192 Salary As per slab As per slab Normal Rate
(incl. cess) N.A. N.A. N.A.
193 Interest on Securities
(1) Interest on Debentures or Securities (Listed) 2500* 2500* 10.00 10.00 10.00 10.00
(2) Interest on 8% Savings (Taxable) Bonds, 2003 10000 10000 10.00 10.00 10.00 10.00
(3) Any Other Interest on Securities (Unlisted) 0 0 10.00 10.00 10.00 10.00
194 Dividend other than dividend covered by Section 115-O 2500* 2500* 10.00 10.00 10.00 10.00
194A Interest other than Interest on Securities (other than below) 5000 5000 10.00 10.00 10.00 10.00
Where the payer is
(1) Banking Company 10000 10000 10.00 10.00 10.00 10.00
(2) Co-operative Society engaged in banking business 10000 10000 10.00 10.00 10.00 10.00
(3) Post Office (deposit scheme framed by Central Government) 10000 10000 10.00 10.00 10.00 10.00
194B Winning from Lotteries 5000 10000 30.00 30.00 30.00 30.00
194BB Winnings from Horse Races 2500 5000 30.00 30.00 30.00 30.00
* in case of resident only
WHAT THE TDS RATE ON HOUSE RENT WHATS THE METHOD OF CALCULATION AND WHATS THE TDS FREE AMOUNT ON RENT