As per Finance Act, for the Financial Year 2009-10 surcharge or Cess is not applicable for TDS with effective from 1st April, 2009. For tax deduction only the specified TDS rates are considered.
Changes in the Surcharge and Cess are applicable as follows.
|
Nature of payment |
Whether surcharge is applicable |
whether education cess @ 2% and secondary and higher education cess @ 1% is applicable |
|
Salary to a resident or non resident |
No |
Yes |
|
Payment other than salary to a resident |
No |
No |
|
Payment other than salary to a non-resident not being foreign company |
No |
Yes |
|
Payment other than salary to a foreign company (payment or credit subject to TDS does not exceed Rs.1 Crore) |
No |
Yes |
|
Payment other than salary to a foreign company (payment or credit subject to TDS exceeds Rs.1 Crore) |
Yes @ 2.5% of TDS |
Yes |
Note: Surcharge/ Cess changes are provided in Stat Version 90 for Tally.ERP 9 Release 1.5. The Transactions recorded prior to Stat Version 90 in Tally.ERP 9 (earlier releases) will have the Surcharge and Cess amount deducted. Such Deducted Surcharge and Cess can be claimed as returns from the Income Tax Department by the Deductee.