TDS RATES

RATES FOR TAX DEDUCTION AT SOURCE

During the financial year 2011-12, tax is to be deducted at source at the following rates:

para *****

Tax rates for the assessment year 2012-13 are given below�

For a resident woman (who is below 60 years on the last day of the previous year, i.e., born on after April 1, 1952)�

For a resident senior citizen (who is 60 years or more at any time during the previous year but not more than 80 years on the last day of the previous year, i.e., born during April 1, 1932 and March 31, 1952)�

For a resident super senior citizen (who is 80 years or more at any time during the previous year, i.e., born before April 1, 1932)�

For any other individual (born after April 1, 1952), every HUF/AOP/BOI/artificial juridical person�

Notes:

1. Surcharge - Nil

2. Education cess - It is 2 per cent of income-tax.

3. Secondary and higher education cess - It is 1 per cent of income-tax.

*Surcharge is applicable for TDS purposes only when the recipient is a foreign company and payment/credit subject to TDS exceeds Rs. 1 crore. In no other case, surcharge is applicable at the time of deduction of tax at source. Education cess and secondary and higher education cess are applicable for TDS purposes in the case of tax deduction from payment of salary to a resident or a non-resident. Education cess and secondary and higher education cess are also applicable in the case of payment or credit of any other sum to a non-resident or a foreign company. In no other case, education cess and secondary and higher education cess are applicable for TDS purposes. Moreover, if the PAN of the deductee is not intimated to the deductor, tax will be deducted at source either at the rate given in the table or at the rate of 20 per cent, whichever is higher. Further, under section 94A(5), if payment or credit is made or given to a deductee who is located in a notified jurisdictional area, tax is deductible at the rate given in the table or at the rate of 30 per cent, whichever is higher.

�Under sections 194B and 194BB, if recipient is a non-resident (other than a foreign company), tax is deductible at the rate of 30.9% (i.e., IT: 30%, EC: 2% and SHEC: 1%). If the recipient is a non-domestic company, tax is deductible at the rate of 30.9% (i.e., IT: 30%, EC: 2% and SHEC: 1%), if payment does not exceed Rs. 1 crore or at the rate of 31.518% (i.e., IT: 30%, SC: 2%, EC: 2% and SHEC: 1%) if payment/credit exceeds Rs. 1 crore.

�Under sections 194E & 194G, if recipient is a non-resident (other than a foreign company), tax is deductible at the rate of 10.3% (i.e., IT: 10%, EC: 2% and SHEC: 1%). If the recipient is a non-domestic company, tax is deductible at the rate of 10.3% (i.e., IT: 10%, EC: 2% and SHEC: 1%), if payment/credit does not exceed Rs. 1 crore or at the rate of 10.506% (i.e., IT: 10%, SC: 2%, EC: 2% and SHEC: 1%) if payment/credit exceeds Rs. 1 crore.

���Under section 194LB, if recipient is a non-resident (other than a foreign company), tax is deductible at the rate of 5.15% (i.e., IT: 5%, EC: 2% and SHEC: 1%). If the recipient is a non-domestic company, tax is deductible at the rate of 5.15% (i.e., IT: 5%, EC: 2% and SHEC: 1%), if payment/credit does not exceed Rs. 1 crore or at the rate of 5.253% (i.e., IT: 5%, SC: 2%, EC: 2% and SHEC: 1%) if payment/credit exceeds Rs. 1 crore.