What are the TDS rate? what are Changes made in Tds?

hi, pls refer to the following table for your easy understanding. 192 Salaries Exemption limits in case of Salaries (sec. 192) a. Individual/HUF/AOP/BOI – Rs. 1.10 Lacs. b. Women (below 65 yrs of age) – Rs. 1.45 Lacs. c. Senior Citizen (above 65 yrs of age) – Rs. 1.95 Lacs TDS will be deducted at the following rates:- a. up to exemption limit given above - no tds b. from exemption limit to 150000 - 10% c. for next 100000 - 20% d above amounts - 30% 193 Interest on Securities > Rs. 2,500.00 Rates Non Comp 10% Comp 20% 194A Interest other than Interest on Securities exceeding Rs 5,000/- Rates Non Comp 10% Comp 20% 194B Lottery / Crossword Puzzle exceeding Rs. 5,000/- Rates For all 30% 194BB Winning from Horse Race exceeding Rs. 2,500/- Rates For all 30% 194C(1) Contracts exceeding Rs.20,000/- Rates For all 2% 194C(2) Sub-Contracts / Advertisements exceeding Rs.20,000/- Rates For all 1% 194D Insurance Commission exceeding Rs.5,000/- Rates Non Comp 10% Comp 20% 194EE Refund of NSS exceeding Rs.2,500/- Rates Non Comp 20% Comp NIL 194F Repurchase of Units by MF / UTI Rates Non Comp 20% Comp NIL 194G Commission on Sale of Lottery Tickets exceeding Rs.1,000/-Rates Non Comp 10% Comp 10% 194H Commission or Brokerage exceeding Rs.2,500/- Rates Non Comp 5% Comp 5% (w.e.f. 01-06-07 rate of TDS is 10%) 194I Rent paid for a. Land b. Buildings c. Land appurtenant to building (including factory building) d. Plant & Machinery e. Equipment f. Furniture & Fittings if exceeds Rs.1,20,000/- p.a. Rates 15% - (Idividual & Huf) 20% - (Others) (in case of plant/machinary/equipment w.e.f. 01-06-07 rate of TDS is 10% for all) 194J Professional / Technical Charges / Royalty and non Compete Fees exceeding Rs.20,000/- Rates Non Comp. 5% Comp 5% [@10% w.e.f. 01-06-07.] 194LA Compensation on acquisition of immovable property exceeding Rs.1,00,000/- w.e.f. 01/10/2004 Rates Non Comp 10% Comp 10% Add Surcharge @ 10% and Education cess @ 3% in all the cases. No surcharge @10% if the payment do not exceed:- a. Firms and Companies – Rs. 1 Crore. b. Individual and HUFs – Rs. 10 Lacs. hope you get good idea of the provisions after budget. bye.

Change in Tax Deduction at Source Rates The following amendments have been made by the Budget 2007/CBDT in respect of deduction of tax at source and issue of TDS certificate. 1. The rate of deduction of tax at source w.e.f. 1st April, 2007 are as under : (i). Payment to Contractors Tax : 2% Surcharge : 10% of Tax Education Cess : 3% of tax and surcharge. Hence over all rate will be 2.266% if surcharge is applicable otherwise the rate will be 2.06%. (ii). Payment to Sub-Contractor Tax : 1% Surcharge : 10% of Tax Education Cess : 3% of Tax & surcharge Hence over all rate will be 1.133%, if surcharge is applicable and otherwise it will be 1.03%. (iii). Payment of interest A. If paid to a person other than a company Tax : 10% Surcharge : 10% of tax Education Cess : 3% of Tax & Surcharge Overall TDS rate : 11.33% if surcharge is applicable and otherwise 10.30%. B. If paid to a company Tax : 20% Surcharge : 10% of Tax Education Cess : 3% of tax and surcharge Overall TDS rule : 22.66% if surcharge is applicable and otherwise 20.60%. (iv). Payment for Professional/Technical Services/Commission/ Brokerage From 01.04.2007 to 31.05.2007 From 01.06.2007 onwards Tax Rate 5% Tax Rate 10% Surcharge 10% Surcharge 10% Tax Education Cess 3% of the Surcharge Education Cess : 3% of Tax & Surcharge Overall TDS Rate 5.665% if surcharge is applicable otherwise 5.15% Overall TDS rate 11.33% if surcharge is applicable, otherwise 10.30% (v). Payment of Rent for Land and Building A. If paid to an individual or HUF Tax Rate : 15% Surcharge : 10% of Tax Education Cess : 3% of tax & surcharge Overall TDS rate : 16.995% if surcharge is applicable otherwise 15.45% B. If paid to a person other than individual or HUF Tax Rate: 20% Surcharge 10% of Tax Education Cess : 3% of Tax & Surcharge Overall TDS Rate : 22.66% if surcharge is applicable otherwise 20.60% (vi). Payment of Rent for Plant and machinery From 01.04.2007 to 31.05.2007 From 01.06.2007 onwards Tax Rate: 15% if paid to individual or HUF : 20% if paid to a person other than Individual and HUF Tax Rate : 10% for all Surcharge :10% Surcharge 10% Tax Education Cess : 3% of Tax and Surcharge Education Cess : 3% of Tax & Surcharge Overall TDS Rate :16.995% or 22.66% if surcharge is applicable otherwise 15.45% or is 20.60% Overall TDS rate 11.66% if surcharge is applicable, otherwise 10.30% (vii) Salaries Tax to be computed at normal rate on the basis of following table. Basic Exemption Rs.1,10,000/- From 1,10,000/- to 1,50,000 @ 10% 1,50,000/- to 2,50,000 @ 20% 2,50,000/- onward @ 30% Surcharge to be levied @ 10% in case taxable income exceeds Rs.10,00,000/-. Education Cess to be added @ 3%. However Basic Exemption for Woman Tax Payers shall be Rs.1,45,000/- and for Senior Citizen Rs.1,95,000/- 2. Education Cess @ 3% is applicable with effect from 1.4.2007. 3. Surcharge for deducting tax at source shall be leviable in case where payment is made to an individual or HUF, AOP or body of individual when aggregate amount paid or likely to be paid and subject to tax deduction exceeds Rs.10 lakhs, in case payment is made to a firm or a domestic company when aggregate amount paid or likely to be paid exceeds Rs.1 crore. In the case of payment to other than a domestic company the surcharge shall be levied @ 2.5%. Applicability of surcharge, in case payment exceeds the above prescribed limit is effective from 01.04.2007. 4. Change in rate of deduction of tax at source on payment of commission, brokerage, professional/technical services, rent shall be effective from 01.06.2007. 5 Applicability of increased limit of Rs.10,000/- for non deduction of tax in respect of payment of interest by bank shall be effective from 01.06.2007. 6. Applicability of leviability to deduct tax at source on payment by individual/HUF having turnover exceeding the limit prescribed in Section 44AB in respect of payment to contractors shall be effective from 1st June, 2007. 7. TDS Certificate to be issued in revised form No. 16, 16A & 27 notified by the CBDT

It differs, from service to service and sourse of income.

Normally TDS rate is 10.2%.

U CAN FIND THE SAME ALONG WITH OTHER INFORMATION AT INCOME TAX DEPARTMENT SITE http://www.incometaxindia.gov.in/