Understanding New TDS Provisions for FY 2010-11: What Changes Should We Expect?

Hi all,

Here are the new TDS provisions applicable w.e.f. F.Y. 2010-11 (not applicable to F.Y. 2009-10).

Regards,
Radhe

Dear Sir,

For the F.Y. 2010-2011, for TDS deduction of labor bills, if the bills come in April 2010, partly above Rs 20,000/- (i.e. Rs. 15,000, Rs. 8,200/-), then in that case, is TDS deducted on both bills or not? Also, how is it determined whether the party is a proprietor/HUF/partnership firm/co, as the TDS rates differ for each entity?

Additionally, I request you to email me the TDS Chart for the F.Y. 2010-2011 (A.Y. 2011-2012).

Thanks,
Rakesh B. Torgalkar
(rakeshji99@rediffmail.com)

Mr. Rakesh,

You should demand a copy of the PAN card of the deductee. A careful observation may clear the doubts. For individuals, the 4th digit will be 'P', and the next digit will be the first digit of the surname of the proprietor. In the case of a firm, the 4th digit will be 'F'.

Dear Rakesh,

You can follow the suggestion of Nitika, or you can simply ask the party about their status. And you have to deduct TDS on all amounts at 1 or 2% as per their status if the total amount exceeds Rs. 30,000, as the limit is now enhanced to Rs. 30,000 from Rs. 20,000 after 01.07.10.

Regards,
Radhe