Wednesday 2 March 2016

CHANGES IN TDS RATES CUTOFF AMOUNT - IN UNION BUDGET 2016

Measures for TDS / TCS Rationalisation:-

Present SectionHeadsExisting Threshold Linit (Rs.)Proposed Threshold Limit (Rs.)
192APayment of accumulated balance due to an employee in EPF30,00050,000
194BBWinnings Form Horse Race5,00010,000
194CPayments to ContractorsAggregate annual limit of 75,000Aggregate annual limit of 1,00,000
194LAPayment of Compensation on acquisition of certain Immovable Property2,00,0002,50,000
194DInsurance Commission20,00015,000
194GCommission on sale of lottery tickets1,00015,000
194HCommission on brokerage5,00015,000


Present SectionHeadsExisting Rate of TDS (%)Proposed Rate of TDS (%)
194DAPayment in respect of Life Insurance Policy2%1%
194EEPayment in respect of NSS Deposits20%10%
194DInsurance Commission10%5%
194GCommission on sale of lottery tickets10%5%
194HCommission on brokerage10%5%
194KIncome in respect of unitsTo be omitted w.e.f 01.06.2016
194LPayment of Compensation on acquisition of Capital AssetTo be omitted w.e.f 01.06.2016

 Section 194I Rent Change:

It is also proposed to provide that upon self-certification, no tax will be deducted on rental payments u/s 194I if the income of the payee does not exceed the maximum amount not chargeable to tax.

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