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Former Member

To change the tax rates in Withholding Tax Codes or create new?

Hi

TDS rates have changed w.e.f 1.6.2007 for certain sections. Our clients wants to change the rates with a certain validity dates. There are certain bills to be processed yet for dates before the validity dates of the new tax rates. Is it advisable to change the rates in existing taxe codes or should we create new tax codes for the new rates. Pls advise

Regards

Sanil Bhandari

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2 Answers

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    Former Member
    Aug 17, 2007 at 11:47 AM

    Hi Sanil,

    Please create new TDS codes for the new rates. Never change the existing TDS codes. If you change the existing TDS code report will not be fine. Also TDS calculation will get changed based on the updated rates in the existing TDS code.

    I am 100% sure, please create new TDS code for the changed rates.

    If you convinced please assign points for the same.

    Thanks & Best Regards,

    nms

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    • Dear nms,

      Do you mean to say that we need to create new codes every year if the rate changes as per the Budget?

      Then I feel that we need to create new WH tax types also cottesponding to the new WH tax code.

      Is it correct? By doing this dont you feel we are complicating the work for users?

      What problems you see in changing the existing rates?

      Thanks & regards,

      Govind

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    Former Member
    Aug 29, 2007 at 05:00 AM

    na

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