Amendment in Tds rates from 1st june 2016

TDS threshold limits w.e.f 01.06.2016

Present Section Heads Existing Threshold Limit (Rs.) Proposed Threshold Limit (Rs.)
192A Payment of accumulated balance due to an employee in EPF 30,000 50,000
194BB Winnings Form Horse Race 5,000 10,000
194C Payments to Contractors Aggregate annual limit of 75,000 Aggregate annual limit of 1,00,000
194LA Payment of Compensation on acquisition of certain Immovable Property 2,00,000 2,50,000
194D Insurance Commission 20,000 15,000
194G Commission on sale of lottery tickets 1,000 15,000
194H Commission on brokerage 5,000
15,000

Changes in TDS rates w.e.f 01.06.2016 

Present Section Heads Existing Rate of TDS (%) Proposed Rate of TDS (%)
194DA Payment in respect of Life Insurance Policy 2% 1%
194EE Payment in respect of NSS Deposits 20% 10%
194D Insurance Commission 10% 5%
194G Commission on sale of lottery tickets 10% 5%
194H Commission on brokerage 10% 5%
194K Income in respect of units To be omitted w.e.f 01.06.2016
194L Payment of Compensation on acquisition of Capital Asset To be omitted w.e.f 01.06.2016

Changes in TCS rates w.e.f 01.06.2016

Present Section Heads Existing Rate of TCS (%) Proposed Rate of TCS (%)
206C Sale of motor vehicle >Rs.10lacs 1%
206C Sale in goods/services in cash >2 lacs(other than bullion and jewellery)(other than payments on which TDS is made) 1%

 

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