Amendments in section 194C from 01.10.2009:As per amendment through Finance Act(2) ,2009,new Section 194C has been substituted for old section 194C .New Section is applicable from the 01.10.2009.The main changes in the new section is given as under
Separate rates for contractor and subcontractor has been removed.Now the tax rate has been categorised according the status of deductee and new TDS rates for contractors are as under
For payment made to Individual & Hindu undivided family=1 %
For payment to others =2%
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Today (09.09.2009) Cost Inflation index for Financial Year 2009-10 Has been notified.The Index is to be used for the calculation of Long term capital Gain on Capital assets .More over person who has sold their assets in April & looking to invest money in Bonds is looking for this Notification as time limit for investment as per section 54EC is 6month from date of transfer of capital assets which is going to be expire in October 2009 for such persons.
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