A.
Amendments in rates of TDS mentioned in in
relevant section of Income Tax Act, 1961 w.e.f 01st June, 2016
|
Relevant Section
|
Particulars of Heads
|
Rates before
01st June, 2016
|
Rates after
01st June, 2016
|
Amended by Finance Act, 2016
|
|
194DA
|
Payment in respect of Life Insurance Policy
|
2%
|
1%
|
Clause 74
|
|
194EE
|
Payments in respect of NSS Deposits
|
20%
|
10%
|
Clause 75
|
|
194G
|
Commission on sale of Lottery Tickets
|
10%
|
5%
|
Clause 76
|
|
194H
|
Commission or Brokerage
|
10%
|
5%
|
Clasue 77
|
B.
Amendments in TDS threshold limit of TDS on
various payments in relevant section of Income Tax Act, 1961 w.e.f 01st
June, 2016
|
Relevant Section
|
Particulars of Heads
|
Threshold Limit before
01st June, 2016
(in Rs.)
|
Threshold Limit after
01st June, 2016
(in Rs.)
|
Amended by Finance Act, 2016
|
|
192A
|
Payment of accumulated balance due to an Employee
|
30000
|
50000
|
Clause 70
|
|
194BB
|
Winnings from Horse Race
|
5000
|
10000
|
Clause 71
|
|
194C
|
Payment t Contractors (Annual Limit)
|
75000
|
100000
|
Clause 72
|
|
194D
|
Insurance Commission
|
20000
|
15000
|
Clause 73
|
|
194G
|
Commission on sale of lottery tickets
|
1000
|
Clause 76
|
|
|
194H
|
Commission on brokerage
|
5000
|
15000
|
Clause 77
|
|
194LA
|
Payment of Compensation on acquisition of certain
Immovable Property
|
200000
|
250000
|
Clause 79
|
C.
Amendments in TCS w.e.f 01st June,
2016
Clause 86 of Finance Bill, 2016
has amend the Section 206C of Income Tax Act, 1961, TCS are required to be
collected @1% on the following provisions.
a.
Now Seller required to collect TCS @1% on Sale
of Motor Vehicle more than Rs. 10 lakhs.
b. Sales
in goods/services in cash more than 2 lakhs other than bullion and jewelery and other than payments on which
TDS made.
Reference
