New TDS Rates w.e.f. 01.10.2009

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The rate of tax deduction at source in respect of payment of rent has been reduced to 2% from 10% for the use of any plant, machinery or equipment and to a uniform rate of 10% in respect of rent of land, building or furniture as against the earlier rate of 15% on payment to Individual/HUF and the rate of 20% on payment to a person other the Individual and HUF. This change in rate on rent is effective from 1st October,2009.

Thus the rate of deduction of tax at source have by and large been streamlined at 10% with no surcharge and no education/higher education cess. The new rates w.e.f. 01.10.2009 are summarized as under:-

Sr. No.	Section	Nature of Payment	Rate	w.e.f..
1.	192	Salaries	As per actual tax computed on the salaries with Education cess and Higher education cess.	April 1, 2009
2.	194-A	Interest	10 percent	April 1, 2009
3.	194-H	Commission or Brokerage	10 percent	April 1, 2009 Existing (No change)
4.	194-I	Rent (i) Land, Building,,Furniture (ii) Plant, Machinery & Equipment	10 percent 2 percent	Oct 1, 2009 Oct 1, 2009
5	194-J	Professional or Technical Services	10 percent	Apr 1, 2009 Existing ( no change )
6	194-C	Contractors / Sub-Contractors Including , advertising (i) To Individual/HUF (ii) To person other than Individual/HUF (iii) To Transporters (If PAN is furnished )	1 percent 2 percent NIL	Oct 1, 2009 Oct 1, 2009 Oct 1, 2009