Changes in TDS Provisions w.e.f. 1st June 2016
1. Section 192(A) –Payment of an Accumulated Balance Due to an Employee from EPF. No Tax is required to be deducted in case amount does not increase Rs 50000. (Increased from 30000)
2. Section 194BB – Wining from Horse Race, Tax to be deducted at Source in case amount Increase Rs 10000. (Increased from Rs 5000)
3. Section 194C – Payments to Contractors-Tax in required to be deducted in case where aggregate of the amount paid or credited during the financial year exceeds Rs100,000( Increased from Rs 75000)
4. Section 194D — Insurance Commissions. Here the Limit of Tax deduction has been reduced from Rs 20000 to RS 15000. Means Payment of any commission on Insurance will attract TDS in case Amount Exceeds Rs 15000.
5. Section 194DA – Payments In Respect of Life Insurance Policy- Payment of any sum under Life insurance policy including Bonus other than the amount not included in the total income under clause (10D0 of Section 10, Rate of TDS has been reduced to 1% from 2%
6. Section 194EE – Payments in Respect of Deposits under NSS. Rate of TDS has been reduced to 10% from 20%.
7. Section 194G – Commission on Sale of Lotteries- Limit has been increased from Rs 1000 to Rs 15000(Means No TDS on Payments up to Rs 15000). And Rate of TDS has also been reduced to 5% from 10%.
8. Section 194H – Payment of Commission and Brokerage- Rate of TDS has been reduced to 5% from 10% and under proviso – (Limit has been increased from Rs 5000 to Rs 15000(Means No TDS on Payments up to Rs 15000).
9. Section 194 K and 194 L omitted w.e.f 1st June 2016.
10. Section 194LA –Payment of Compensation on acquisition of Certain Immovable Property – Previously no TDS was required to be deducted in case amount Does not exceeds Rs 200,000. This limit has been increased to Rs 250,000.
11. Section 194LBB – Income In respect of Units of Investment Fund- Rate of TDS has been Changed from 10 % to following
1. At the Rate of 10% – In case of Resident payee
2. At the Rate in Force- In case on Non-Resident Payee(not Being a Company ) or a foreign company
12. Insertion of New Section 194LBC-
1. Where any income is payable to an investor, being a resident, in respect of an investment in a securitisation trust specified in clause (d) of the Explanation occurring after section 115TCA, the person responsible for making the payment shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon, at the rate of—
(i) 25%, if the payee is an individual or a Hindu undivided family;
(ii) 30%, if the payee is any other person.
2. Where any income is payable to an investor, being a non-resident (not being a company) or a foreign company, in respect of an investment in a securitisation trust specified in clause (d) of the
Explanation occurring after section 115TCA, the person responsible for making the payment shall, at the time of credit of such income to the account of the payee or at the time of payment thereof in cash or by issue of a cheque or draft or by any other mode, whichever is earlier, deduct income-tax thereon , at the rates in force.
Explanation.—For the purposes of this section,—
(a) “Investor” shall have the meaning assigned to it in clause (a) of the Explanation occurring after section 115TCA;
(b) Where any income as aforesaid is credited to any account, whether called “suspense account” or by any other name, in the books of account of the person liable to pay such income, such crediting shall be deemed to be the credit of such income to the account of the payee, and the provisions of this section shall apply accordingly.’.