194C as per New TDS Rates

Wednesday, May 12, 2010 | comments

Friends

                       It is general view that there is no change in tds rates w.e.f. 01.10.09. Only threshold limit has been changed.  But special attraction is required to those who are making advertising payment as deductor. As earlier post or the TDS table given as below, It can be observed that deduction of tds under section 194C  has been changed specifically in case of Payment to Advertiser.   As per old practice, deductor is  deducting 1% tds while making payment to Advertiser.  Now criteria has been changed.  It depends upon his Pan Status. If it relates to Individual/H.U.F. than TDS will be deducted 1% (same as earlier) , If  advertisers gives Pan Number of  his firm/company/trust etc.,  TDS will be deducted 2%( prior to 01.10.2009, it was 1%). 

Status of Pan (Permanent Account Number)
                      Now, deductor  has a question that how can he know that a PAN supplied by deductee relates to Individual/H.U.F. or not ?.   It is easy to everyone to find out that  It depends upon fourth character of the PAN digits.   In case  P or H. Pan relates to Individual/H.U.F.  and in other case it do no relates to Individual/H.U.F. 
Example 
               PAN  NUMBER  =  AAAPA2273P         (This pan number relates to Individual due to "P" as fourth character in Pan)



TDS Calculator w.e.f. 01.10.2009
Financial Year 2010-11 (Assessment Year 2011-12)
(for further updates visit at www.fastworking.blogspot.com)
Tax Deduction at Source (Rates)



Enter Bill Amount

515800



Section
Nature of Payment
Threshhold Limit
TDS %
TDS (Amount)


01-10-09 to 30-06-10
01-07-10 to onwards


194-A
Interest from Bank
10000
10000
10
51580
194-A
Interest Others
5000
5000
10
51580
194-B
Winning from Lotteries
5000
10000
30
154740
194-BB
Winning from Horse Races
2500
5000
30
154740
194-C
Contractor/Sub Contractor including Advertisor





     1) To Individual/H.U.F.
(a) 20000 as single   (b) 50000  in a year   
(a) 30000 as single    
(b) 75000 
 in a year
1
5158

     2) To Other than Individual/H.U.F.
2
10316

     3) To Transporters (If Pan is Furnished)
0
0
194-D
Insurance Commission
5000
20000
10
51580
194-H
Commission or Brokerage
2500
5000
10
51580
194-I
Rent (1)Land,Building,Furniture or any Property
120000
180000
10
51580

        (2) Plant,Machinery & Equipment
120000
180000
2
10316
194-J
Profesional or Technical Services
20000
30000
10
51580












Note :- Surcharge and Education Cess has been removed w.e.f. 01.10.2009
Note :- If pan is not provided, 20% TDS will be deducted w.e.f. 01.04.10 u/s 206AA

As per section 194C (6)


(6) No deduction shall be made from any sum credited or paid or likely to be credited or paid during the previous year to the account of a contractor during the course of business of plying, hiring or leasing goods carriages, on furnishing of his Permanent Account Number, to the person paying or crediting such sum

Read complete section regarding 194C in the words as per Income Tax Act (Click Here)
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