No Education Cess on payment made to resident

Education Cess is not deductible/collectible at source in case of resident Individual/HUF /Firm/ AOP/ BOI/ Domestic Company in respect of payment of income other than salary. Education Cess @ 2% plus secondary & Higher Education Cess @ 1% is deductible at source in case of non-residents and foreign company.


Acceptance of e-TDS/TCS statements in Pen Drive

  • Submission of e-TDS/TCS statement has been enabled in Pen Drive in addition to the existing option of CD.
  • Deductors /Collectors are advised to check the feasibility of acceptance of statement in pen drive with TIN Facilitation centers before submission.
  • The Pen Drive / CD may contain details of multiple e-TDS/TCS statements.
  • The computer media (CD/Pen Drive) will be return after acceptance of statements

Higher Rate deductions liable for PANNOTAVBL Deductees

As per new provision of tax deduction at source (TDS) under the Income Tax Act 1961 effective from April 1, 2010, TDS at higher of the prescribed rate or 20% will be deducted on all transactions liable to TDS, where the Permanent Account Number (PAN) of the deductee is not available.

For more details on the article from Income Tax India,  kindly refer the following link: