Thursday, March 15, 2007

TAX DEDUCTED AT SOURCE


  • Individuals and HUFs also to deduct tax u/s 194C on amounts paid to Work Contractors, if such individual or HUF’s turnover exceeds the limit specified u/s 44AB 
  • Rate of deduction of Tax on payment of commission or brokerage increased to 10% u/s 194H.
  • Rate of tax deductible at source on rents payable for hiring of machinery, plant u/s 194 I or other equipments reduced to 10%.  
  • Rate of tax deductible at source on sums payable for fees for professional services or technical services u/s 194 J or other equipments increased to 10%.
  • Exemption Limit of Rs. 5000 raised to Rs. 10000 for deduction of tax u/s 194 A on interest earned on Fixed Deposits with banking Company, Cooperative Society engaged in banking business and Post Office under notified schemes. 
  • TDS shall be deducted on 8% (Taxable) Savings Bonds, 2003, if interest payable in a financial year exceeds Rs. 10,000 u/s 193.
All TDS related amendments will take effect from June 1, 2007.
 

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