« Top Headlines » Open DEMAT Account in 24 hrs  How to Change Current Period in Tally Prime Step-by-Step Guide for Users  Global Payroll Management with Tally Prime: How International Businesses Use It Beyond India  How to Manage B2B HSN Codes in Tally Prime: A Complete Guide for Businesses  How to Check Business Revenue in Tally Prime: A Complete Step-by-Step Guide  MSME Payment Rule in Tally Prime: Understanding the Law and Its Impact on Businesses in 2025 The MSME (Micro, Small and Medium Enterprises) Payment Rule is a legal framework introduced under th  Multipurpose Empanelment Form (MEF) 2025 26 Meaning, Purpose, and How to Manage It in Tally Prime  GST Appellate Tribunal (GSTAT) Structure, Powers, and Its Relevance in Tally Prime Implementation  How Tally Prime Supports the Real Estate & Construction Industry in India  Comparison Between Tally Prime 6.1 and Tally Prime 6.2  How Tally Prime Renewal Helps Save My Data  Where to Buy Tally Prime 7.0 at the Best Rates Possible «  Accounting by infrastructure companies... Budget may see big-ticket tax relief for oil explorers,... » Pros may get a breather with higher TDS threshold December, 31st 2007 The Budget 2008-09 could bring some cheer to a host of self-employed professionals, like engineers and architects, with the likely increase in the threshold for tax deducted at source (TDS) for these professionals. The existing ceiling for deduction of tax at source is Rs 20,000. As per section 194J of the Income Tax Act, 1961, if the fee for professional or technical service contract undertaken by any of these professionals is more than Rs 20,000, the contract awardee has to deduct tax at the rate of 10%. The government had hiked the rate of TDS from 5% to 10%. With this hike in rate of TDS, these professionals have to get substantially higher amount of tax deducted when they receive their fees. Though this amount can be claimed as a refund if they do not have a tax liability, it could create working capital problems for them, especially smaller ones. The limit was last revised in 1994. There has been a demand for raising the ceiling for some time now. Several industry bodies have sought indexation of the limits, thresholds fixed under the Income Tax Act. The limit is particularly low, especially after the introduction of service tax which is now levied at the rate of 12% (plus cess). However, there could be some bad news in store for contractors. The government may revise upwards the TDS rates in some other categories. Contractors or subcontractors including broadcasting, telecasting, those offering plane chartering services under section 195(C) of the Income Tax Act may be hiked from 2% at present. The threshold for deduction of TDS under this category is also Rs 20,000.