Person Responsible to Deduct Tax:
Payment made by specified person other than individual or HUF, who are not subject to tax audit during the preceding financial year.
Category of Payee:
Any person resident in India
Rate of Deduction of Tax:
Up to 30-9-2009 Advertisement contracts:1% Other contracts:
- For contractors-2%
- For sub-contrctors-1%
W.E.F 1-10-2009 All contractors & sub- contractors and for all contracts
- Individual & HUF-1%
- Others -2%
Time for Deduction of Tax:
At the time of credit or payment, whichever is earlier.
Time for Deposit of TDS:
In case of deduction by or on behalf of Government, on the same day. In all other cases:
- If the amount is credited on the last day of the accounting year– within 2 months from the end of the month in which it is credited.
- Other cases- within 1 week from the last day of the month of tax deduction.
Deduction of Tax at Lower Rate or Non-Deduction of Tax:
Application of Form No. 13 shall be made to the assessing officer.
Certificate in Plain Paper shall be issued by the assessing officer to the assessee.
