Applicable for payments made on or after 01-10-2009.
By the Finance Act 2009 TDS rates are revised for some types of Payments. The new rates are applicable on and after payments made from 01-10-2009. The revised rates are as under:
Section 194C Contract Payments:
New Rates Earlier Rates
Contracts with Individual/HUF 1% 2%
Contracts with Others 2% 2%
Here contracts includes Sub Contracts & Advertisement Contracts.
- If any transporter provides PAN , the TDS on Contract payment is NIL.
- In case PAN is not furnished TDS is to be deducted at the above rates only.
Section 194I Rental Payments:
New Rates Earlier Rates
Rent of Plant & Machinery 2% 10%
Rent of Land or Building or 10% 15%
Furniture & Fittings to Ind./HUF
Rent of Land or Building or 10% 20%
Furniture & Fittings to Others
Points to Remember:
- No Surcharge & Cess is applicable for TDS. (Applicable From 01-04-2009)
- Cess is applicable on Salary Payments as before.
- Quarterly Returns is not required to be filed from 3rd Quarter of F.Y. 2009-10 but new scheme of periodicity not prescribed as yet.
- New Rate of TDS @ 20% in case on non availability of PAN is applicable only from F.Y. 2010-11.
