AMENDMENT IN TDS U/S 194I

1. With effect from October 1, 2009, tax will be deducted at
     source under section 194-I at the rates given below –

For the use of anymachinery or plant or equipment     2%*

For the use of any land or building or furniture or
fittings for all persons                                              10%*

*No surcharge, education cess and secondary and higher

education cess. Tax is not deductible on service tax – Circular

No. 4/2008, dated April 28, 2008.

2.1 Comparison of old and new rates - 

The table given below old and new TDS rates under Sec 194-I –

Nature of Payment                           TDS rate           TDS rate

/Credit                                            up to                 from

                                                     30/9/2009        1/10/2009*

Rent of plant, machinery or                10%                  2%

equipment

Rent of land, building or furniture         15%                 10%

to an individual and Hindu

undivided family

Rent of land, building or furniture          20%                10%

to a person other than an individual

or Hindu undivided family