TDS Rates for A Y 2009-10

All persons who are required to deduct tax at source or collect tax at source on behalf of Income Tax Department are required to apply for and obtain Tax Deduction and Collection Account Number (TAN).

1. Section 192 TDS on Salary : The certificate on Form No. 16 should be issued by the deductor within one month of the close of the financial year in which deduction is made. (Rule 31 (1)(a)

2. In all other cases : The certificate on Form No. 16A should be issued by the deductor within one month of the month during which the credit is given or sum paid. (Rule 31(1)(b))

An option to the payer to issue certificate within one week after the expiry of two months from the month in which income is credited is available where the amount is credited to the account of the payee on the last day of the accounting period of the payer. This option is available in respect of payments except sec 192-salary, 194B-winning from lotteries, 194BB-winning from horse races, 194EE-payments from NSS deposits, 194F-payments in respect of repurchase of units, 194K-income in respect of units. (Rule 31(3))

Where payment in respect of TDS is permitted quarterly under rule 30(1) i.e. income from interest, insurance commission, the certificate is to be issued within 14 days of the payment of Income Tax.

Note : Where more than one certificate is required to be furnished to the payee during the financial year, then on the request of the payee, one consolidated certificate may be issued within one month from the end of such financial year.

Important :

• TDS deducted is required to be deposited within one week from the last day of the month of deduction.
• If TDS amount is not deposited by the due date, then for each month a penalty of interest equal to 1% of the TDS amount is to be paid.
• If the quarterly TDS return is not filed by the due date, a penalty of Rs. 100 per day subject to maximum limit equal to the TDS amount is chargeable.