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.