Saturday, February 27, 2010

NEW TDS RATE AFTER BUDGET 2010 -CUT OFF LIMIT CHANGES


on Saturday, February 27, 2010

In Finance Bill 2010,Finance Minister has proposed to Increase cut off amount given in various TDS sections.It is a demanded of taxpayers to increase the cut off Limits given in various section regarding TDS .Now It has been considered .New Cut off Limits are applicable from 01.07.2010.The complete List of changes is given below.Further there is no change in Basic rates under any section .

In order to adjust for inflation and also to reduce the compliance burden of deductors and taxpayers, it is proposed to raise the threshold limit for payments mentioned in sections 194B, 194BB, 194C, 194D, 194H, 194-I and 194J as under:


CUT OFF LIMIT ON TDS ON CROSSWORDS AND LOTTERY OLD=5000 NEW=10000 (EFFECTIVE FROM 01.07.2010)
In section 194B of the Income-tax Act, for the words “five thousand rupees”, the words “ten
thousand rupees” shall be substituted with effect from the 1st day of July, 2010.
CUT OFF LIMIT ON TDS ON WINNING ON HORSE RACES OLD=2500 NEW=5000 (EFFECTIVE FROM 01.07.2010)
In section 194BB of the Income-tax Act, for the words “two thousand five hundred rupees”, the
words “five thousand rupees” shall be substituted with effect from the 1st day of July, 2010.
CUT OFF LIMIT ON TDS ON PAYMENT TO CONTRACTOR(EACH CONTRACT) OLD=20000 NEW=30000 (EFFECTIVE FROM 01.07.2010)
CUT OFF LIMIT ON TDS ON PAYMENT TO CONTRACTOR(ALL CONTRACT IN YAER) OLD=50000 NEW=75000(EFFECTIVE FROM 01.07.2010)
In section 194C of the Income-tax Act, in sub-section (5), with effect from the 1st day of July,
2010,—
(a) for the words “twenty thousand rupees”, the words “thirty thousand rupees” shall be substituted;
(b) in the proviso, for the words “fifty thousand rupees”, the words “seventy-five thousand rupees” shall be substituted.
CUT OFF LIMIT ON TDS ON PAYMENT OF INSURANCE COMMISSION OLD=5000 NEW=20000 (EFFECTIVE FROM 01.07.2010)
In section 194D of the Income-tax Act, in the second proviso, for the words “five thousand
rupees”, the words “twenty thousand rupees” shall be substituted with effect from the 1st day of July,2010.
CUT OFF LIMIT ON TDS ON PAYMENT ON COMMISSION/BROKERAGE=2500 NEW=5000 (EFFECTIVE FROM 01.07.2010)
In section 194H of the Income-tax Act, in the first proviso, for the words “two thousand five
hundred rupees”, the words “five thousand rupees” shall be substituted with effect from the 1st day of July, 2010.
CUT OFF LIMIT ON TDS ON PAYMENT OF RENT 120000 NEW=180000 (EFFECTIVE FROM 01.07.2010)
In section 194-I of the Income-tax Act, in the first proviso, for the words “one hundred and twenty thousand rupees”, the words “one hundred eighty thousand rupees” shall be substituted with effect from the 1st day of July, 2010.
CUT OFF LIMIT ON TDS ON PAYMENT OF PROFESSIONAL FEES AND TECHNICAL CHARGES AND ROYALTY 20000 NEW=30000 (EFFECTIVE FROM 01.07.2010)
In section 194J of the Income-tax Act, in the first proviso to sub-section (1), in clause (B), for the words “twenty thousand rupees”, wherever they occur, the words “thirty thousand rupees” shall be substituted with effect from the 1st day of July, 2010.

Download TDS rate Charts 01.04.2009 to 30.09.209 and 01.10.209 to 31.03.2010 With above changes (cut off) in PDF format.rates applicable form 01.07.2010