TDS rates has been proposed to be changed by Finance Minister in Budget 2009 .Basically following changes has been done in the TDS rates effective from 01.10.2009
- No surcharge and cess on tax deducted on non-salary payments made to resident taxpayers..so now onwards(01.10.2009) Tax should be deducted on Basic rate only given in respective section.No education cess or Surcharge is to be deducted except in the case of salary where Tax should be deducted after including the Education cess.Surcharge on individual and HUF assessee has already been abolished for full year fy 2009-10.
- Basic TDS rates for section 194 C (Payment to contractors) and 194I (payment of rent) has been changed (given in table)
- Section 194C has been replaced with new section with less ambiguities.(details in coming post )
- The rate of TDS will be 20 per cent in all cases, if PAN is not quoted by the deductee w.e.f. 1.04.2010
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