UPDATE AS on 14th March, 201o
All tally users should upgrade to latest versions of tally.erp 9. as on today the latest version is tally.erp 9 release 1.61
You may also read my latest article on tally.erp 9 release 1.6 and why you should upgrade to latest version of tally.erp 9
Many Tally users are not sure to upgrade to tally.erp 9 or not.
My opinion is that due to financial closing of F.Y. 2008-09, it is not advisable to upgrade to tally.erp 9 if you have entries relating to vat, excise and TDS. you will face problems for filling vat, returns, TDS reports, tds for payment in relation to capital expenses and some other major problems are there to be solved by the tally team.
I have raised TDS query with the Tally and here is the reply I got from its support team confirming the