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TDS Rates Applicable for AY 2011-12 (FY 2010-11)

Prepared By- CA Prakash Somani (p_somani@yahoo.co.in)
Individual
/HUF/BOI/AO Any Other
Sr No Sec HEAD Threshold Limit (INR) NOTE P Entity
Before 1st July'10
On or after 1st July'10
1 194A Interest from a Banking Company 10 000 10 000 - 10% 10%
194A Interest other than from a Banking Co. 5 000 5 000 - 10% 10%
2 194B Winning from Lotteries 5 000 10 000 - 30% 30%
3194BBWinning from Horse Races 2 500 5 000 - 30% 30%
4 194C Payment to Contractors /Sub-Contract/Adv Contract20 000 30 000 Note : 1 1% 2%
194C Contractor / Sub-contractor in transport business20 000 30 000
( If PAN not Quoted 20%) Nil Nil
5 194D Insurance Commission 5 000 20 000 - 10% 10%
6 194H Commision/Brokerage 2 500 5 000 - 10% 10%
7 194I Rent on Plant / Machinery 1 20 000 1 80 000 - 2% 2%
194I Rent Other then Plant / Machinery 1 20 000 1 80 000 - 10% 10%
8 194J Fees for Professional / Technical Services 20 000 30 000 - 10% 10%
9 TCS TCS : Scrap - 1% 1%
10 TCS TCS : Alcoholic Liquor for Human Consumption - 1% 1%

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 1st July,201
NOTES:
2 Also see the TCS rates.
3 You can print it on single lanscape page.

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 TDS Highlights FY 2009-10 (AY 2010-11)
Prepared by: CA Prakash Somani ( p_somani@yahoo.co.in )

Surcharge and Cess

No surcharge or Cess is applicable for TDS. Only the specified TDS rates should be considered for ded
Applicable for AY 2010-11 (FY 2009-10).

Payment to Transporters:

For any Transporters, if they Provide the PAN number, the TDS on contract payments is NIL.
But, if they do not provide the PAN during the payment, 1% TDS has to be made for Individuals/HUF a
Payments to transporters without deducting TDS (as they have quoted PAN) should be reported by De
Applicable for AY 2010-11 (FY 2009-10).

Compulsory PAN (Section 206AA)

It is mandatory to quote PAN in all correspondence, bills and vouchers exchanged between Deductor
TDS shall be made at a flat rate of 20% (or actual rate, whichever is higher) for any payments, where
This is applicable even in case where assessee gives Form 15G/15H u/s 197A.
This is also applicable for Non resident Payments.
Assessing officer shall not rise the letter for lower/no deduction, If assessee doesn’t quote a PAN.
Applicable for AY 2011-12 (FY 2010-11). Means the payments made on or after 01st April 2010.

TDS reconciliation (Section 200A)

A new section 200A is introduced.

TDS return filed by the deductor will be processed by the following way:
TDS deductible will be computed on the basis of data in TDS statement, after adjusting any arithmetic
The interest, if any, shall be computed on the basis of the sums deductible on the basis of data in TDS
Any amount payable by / refund to Deductor shall be determined.
Intimation shall be sent to Deductor on Amount payable / refundable.
The amount refundable, if any shall be granted to Deductor.

TDS returns

1. Currently returns has to be filed Quarterly in Form 24Q/26Q/27Q/27EQ

2. Currently government is not allowed to decide the Periodicity of TDS returns, as the power is limite
3. In order to provide administrative flexibility in deciding the periodicity of such TDS related stateme
4. Applicable from 01st October 2009.

Computerized processing of TDS returns

Currently every TDS return involves manual-cum-computerized processing inside the department.
To make the process efficient, department will computerize whole process, where statements regard
This will be on the same lines, how IT returns processing has been computerized in Income Tax Depar
This processing will allow manual interference for Any arithmetical error in the statement.
An incorrect claim, if such incorrect claim is apparent from any information in the statement, for exam
A Centralized Processing Center may be established in this regard.
Applicable for AY 2011-12 (FY 2010-11).
d be considered for deduction

yments is NIL.
de for Individuals/HUF and at 2% for others.
hould be reported by Deductor with PAN details to the Income Tax Department in the prescribed format.

ged between Deductor and deductee.

r any payments, where assessee has not quoted the PAN during the payment.

oesn’t quote a PAN.

r 01st April 2010.

adjusting any arithmetic error or an incorrect claim.

the basis of data in TDS statement.

s, as the power is limited only for structure of forms and the manner.
ch TDS related statements, the existing provisions are modified, so as to allow the Government to prescribe periodicity of s

ide the department.

here statements regard to TDS will be processed.
ed in Income Tax Department.
statement.
the statement, for example, in respect of rate of deduction of tax at source where such rate is not in accordance with the p
prescribe periodicity of such TDS statements besides prescribing their form and manner.

n accordance with the provisions of the Act.