TDS Rates / TDS Chart for A.Y. 2011-12

TDS Rates / TDS Chart for A.Y. 2011-12 / Financial Year 2010-11

Latest and fully updated TDS Rates / TDS Chart for A.Y. 2011-12 / Financial Year 2010-11 with all the amendments till the date of publication of this article is given below. In Budget 2010 TDS rates has not been changed but cut off amount has been proposed to be increased under some sections. The Increased Limits are effective from 01.07.2010. The below given chart is about TDS Rates for F.Y.2010-11 (A.Y. 2011-12) i.e from 1-4-2010 to 31-03-2011. The below give TDS after all amendments done by the CBDT notifications and circulars. The TDS rates chart has mentioned for all payment and about payee status to deduct TDS accordingly.

TDS CHART FOR THE YEAR 1-4-2010 TO 31-3-2011

Sl. No.	Section OfAct	Nature of Paymentin brief	Rate for paymentto Non- Company %	Rate for paymentto Company %	Date within which TDS has to be remitted	Qtrly. State-ment Form No.
1.	192	Salaries	AverageRate	–	Within 1 week from last day of the month in which the deduction is made	24Q
2.	193	Interest on Securities	10	10	-do-	26Q
3.	194	Deemed dividend u/s.2(22)(e) Dividends other than listed companies	10	10	-do-	26Q
4.	194A	Interest other than Interest on securities > Rs.10,000	10	10	-do-	26Q
5.	194B	Lottery / Cross Word Puzzle > Rs.10,000 w.e.f. 01/07/10 (Upto 30-6-2010, Rs.5,000)	30	30	-do-	26Q
6.	194BB	Winnings from Horse Race > Rs.5,000 w.e.f. 01/07/10 (Upto 30-6-2010, Rs.2,500)	30	30	-do-	26Q
7.	194C(1)	Contracts > Rs.30,000 w.e.f. 01/07/10 (Upto 30-6-2010, Rs.20,000)	1(For Indl. & HUF)	2(other than Indl. & HUF)	-do-	26Q
8.	194C(2)	Sub-contracts/Advertisements > Rs.30,000 w.e.f. 01/07/10 (Upto 30-6-2010, Rs.20,000)	1	1	-do-	26Q
9.	194D	Insurance Commission > Rs.20,000 w.e.f. 01/07/10 (Upto 30-6-2010, Rs.5,000)	10	10	-do-	26Q
10.	194EE	Payments out of deposits under NSS > Rs.2,500	20	–	On the day of deduction itself	26Q
11.	194F	Repurchase of units by MF/UTI	20	–	Within 1 week from last day of the month in which the deduction is made	26Q
12.	194G	Commission on sale of lottery tickets > Rs.1,000	10	10	-do-	26Q
13.	194H	Commission or Brokerage > Rs.5,000 w.e.f. 01/07/10 (Upto 30-6-2010, Rs.2,500)	10	10	-do-	26Q
14.	194I	Rent paid for Land Buildings Land appurtenant to a building(including factory building) Plant & Machinery Equipment Furniture & Fittings > Rs.1,80,000 w.e.f. 01/07/10 (Upto 30-6-2010, Rs.1,20,000)	102% for machinery/ plant / equipment	102% for machinery/ plant / equipment	-do-	26Q
15.	194J	Professional/Technical charges/Royalty & Non-compete fees > Rs.30,000 w.e.f. 01/07/10 (Upto 30-6-2010, Rs.20,000)	10	10	-do-	26Q
16	194LA	Compensation on acquisition of immovable property > Rs.1,00,000	10	10	on the day of deduction itself	26Q
17	195/196B/196C/196D/ 196E	Payment to non-residents	Rates in force	Rates in force	-do-	27Q

• Where income referred in Sections 193, 194A, 194C, 194D, 194G, 194H, 194I & 194J is credited to account of payee as on date up to which accounts are made, TDS has to be deposited in Government Account within 2 months from the end of the month in which the date falls.
• Also where the aggregate of the amounts paid/credited or likely to be paid/credited to Contactor or Sub-contractor exceeds Rs.75,000 during the financial year, TDS has to be made.
• An Individual or a Hindu Undivided Family whose total sales, gross receipts or turnover from business or profession carried on by him exceeds the monetary limits(Rs.60,00,000 in case of business & Rs.15,00,000 in case of profession) under Clause (a) or (b) of Sec.44AB during the preceding financial year shall also be liable to deduct tax u/s.194A,194C, 194H, 194I & 194J.
• No deduction shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of a contractor during the course of business of plying, hiring or leasing goods carriages (less than 2 goods carriages) on furnishing of his Permanent Account Number, to the person paying or crediting such sum.
• TDS at higher rate i.e., 20% has to be made if the deductee does not provide PAN to the deductor.
• Tax Credit Statement (Form No.26AS) can be viewed online by registering with www.tin-nsdl.com

TCS CHART FOR THE YEAR 1-4-2010 TO 31-3-2011

Sl.No.	Nature of Goods	Rates in %
1.	Alcoholic liquor for human Consumption	1
2.	Tendu leaves	5
3.	Timber obtained under  forest lease	2.5
4.	Timber obtained by any mode other than a forest lease	2.5
5.	Any other forest produce not being timber or tendu leaves	2.5
6.	Scrap	1
7.	Parking lot	2
8.	Toll plaza	2
9.	Mining & Quarrying	2

• Quarterly Statement for TCS to be filed in Form No.27EQ
• TCS is to be credited to Government Account within one week from the last date of the month in which collection is made.

Notes :

1. Surcharge on Income-tax is not deductible/collectible at source in case of individual/HUF/Firm/AOP/BOI/Domestic Company in respect of payment of income other than salary.
2. In the case of Company other than Domestic Company, the rate of surcharge is @ 2.5% of Income-tax, where the income or the aggregate of such income paid or likely to be paid exceeds Rs.1,00,00,000.
3. Education Cess is not deductible/collectible at source in case of resident individual/HUF/Firm/AOP/BOI/Domestic Company in respect of payment of income other than salary.
4. Education Cess @ 2% plus secondary & Higher Education Cess @ 1% is deductible at source in case of non-residents and foreign company.
5. All deductors/collectors of Income-tax of Central and State Government Departments and all Corporate deductors, including Public & Private Sector Banks, LIC & Insurance Companies should file their Quarterly Statements of TDS/TCS in Computer Media at any of the TIN Facilitation Centres. The e-TDS Statement has to be accompanied by Form No.27A and e-TCS Statement to be accompanied by Form No.27B
6. Other deductors/collectors have the option of filing Quarterly Statements either in Electronic Media or Paper format before the TIN Facilitation Centres of NSDL.
7. The Due Dates for filing Quarterly Statements for TDS/TCS are as under:

For quarter ended	Due Dates
30/06/2009	15/07/2009
30/09/2009	15/10/2009
31/12/2009	15/01/2009
31/03/2010	30/04/2010.

DUTIES OF TAX DEDUCTOR/COLLECTOR

• · To apply for Tax Deduction Account Number (TAN) in form 49B, in duplicate at the designated TIN facilitation centers of NSDL(please see www.incometaxindia.gov.in), within one month from the end of the month in which tax was deducted.
• · To quote TAN (10 digit reformatted TAN) in all TDS/TCS challans, certificates, statements and other correspondence.
• · To deduct/collect tax at the prescribed rates at the time of every credit or payment, whichever is earlier, in respect of all liable transactions.

CONSEQUENCES OF DEFAULT

1. Failure to deduct or remit TDS /TCS(full or part)

• Interest at the rates in force (12% p.a.) from the date on which tax was deductible/collectible to the date of payment to Government Account is chargeable.
• Penalty equal to the tax that was failed to be deducted/collected or remitted is leviable.In case of failure to remit the tax deducted/collected, rigorous imprisonment ranging from 3 months to 7 years and fine can be levied.

2. Failure to apply for TAN in time or Failure to quote allotted TAN or Wrong quoting of TAN

• Penalty of Rs.10,000 is leviable u/s.272BB(for each failure)

3. Failure to issue TDS/TCS certificate in time or Failure to submit form 15H/15G in time or Failure to furnish statement of perquisites in time or Failure to file Quarterly Statements in time

• For each type of failure, penalty of Rs.100/- per day for the period of default is leviable. Maximum penalty for each failure can be up to the amount of TDS/TCS.

GENERAL INFORMATION

• Deduction at lower or nil rate requires certificate u/s.197, which will take effect from the day it is issued. It cannot be used retrospectively.
• If TDS/TCS certificate is lost, duplicate may be issued on a plain paper giving necessary details marking it as duplicate.
• Refund can be claimed by the deductee on filing of return of income.
• Even if the recipient of payment has shown it in his income-tax return and paid the taxes thereon, the deductor/collector who has failed to deduct/collect tax will be liable to pay interest and penalty