Archive for the ‘TDS under IT Act’ Category

Changes in TDS Rules & Procedure

October 8, 2009

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.