| Finance Bill proposes rationalization of TDS rates and threshold limits | |||||||
| (w.e.f 1st June, 2016) TDS Provisions as per Budget 2016 / TDS Rate chart as per Budget 2016 / TDS Rates 2016-17 |
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| Sr. No. | Section | Provision | Existing Provision | Proposed amendment | |||
| 1 | 192A | Payment of accumulated balance from provident fund account | No TDS if payment does not exceed Rs. 30,000 | No TDS if payment does not exceed Rs. 50,000 | |||
| 2 | 194BB | Winning from Horse Race | No TDS if payment does not exceed Rs. 5,000 | No TDS if payment does not exceed Rs. 10,000 | |||
| 3 | 194C | Payment to Contractors | No TDS if payment does not exceed Rs. 75,000 | No TDS if payment does not exceed Rs. 1,00,000 | |||
| 4 | 194D | Payment of Insurance Commission | No TDS if payment does not exceed Rs. 20,000 | No TDS if payment does not exceed Rs. 15,000 | |||
| Rate of TDS : 10% | Rate of TDS : 5% | ||||||
| 5 | 194DA | Payment in respect of Life Insurance Policies | Rate of TDS : 2% | Rate of TDS : 1% | |||
| 6 | 194EE | Payments in respect of NSS Deposits | Rate of TDS :20% | Rate of TDS : 10% | |||
| 7 | 194G | Commission on sale of lottery tickets | No TDS if payment does not exceed Rs. 1,000 | No TDS if payment does not exceed Rs. 15,000 | |||
| Rate of TDS : 10% | Rate of TDS : 5% | ||||||
| 8 | 194H | Payment of commission or brokerage | No TDS if payment does not exceed Rs. 5,000 | No TDS if payment does not exceed Rs. 15,000 | |||
| Rate of TDS : 10% | Rate of TDS : 5% | ||||||
| 9 | 194-I | Deduction of tax from payment of Rent | No TDS if payment does not exceed Rs. 1,80,000 | No TDS even if payment exceeds Rs. 1,80,000 provided landlord furnishes to the payer a self declaration in prescribed Form. No. 15G/15H. |
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| 10 | 194LA | Payment of Compensation on comoulsory acquisition of certain Immovable Property | No TDS if payment does not exceed Rs. 2,00,000 | No TDS if payment does not exceed Rs. 2,50,000 | |||
| 11 | 194LBB | Income in respect of Units of Investment Funds | Rate of TDS: 10% | Rate of TDS: (a) 10% in case resident (b) Rates in Force in case of non-resident |
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| 12 | 206C | Collection of TCS at 1% | Collection of TCS at 1% in case of: (a) Purchase of motor vehicle, if value thereof exceeds Rs. 10 lakhs (b) Purchase of any goods or service, if value thereof exceeds Rs. 2 lakhs and the payment thereof is made in cash. |
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| 13 | 206AA | Exemption from Requirement of furnishing PAN to certain non-resident. | Exemption from Section 206AA was allowed only in case of payment of interest on long-term bonds as referred to in section 194LC | Section 206AA is proposed to be amended to provide exemption from withholding at higher rate in case of other payments made to nonresident as well subject to certain conditions as may be prescribed. | |||