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    Aug 2, 2016

    TDS and TCS Rates and Threshold Limit Changes and New Rates wef 1 June 2016

    The Income tax department has made many changes in TDS and TCS rates and threshold limit wich are applicable from 1 June 2016.

    The Department wants to catch more and more people in context of TDS and TCS. In this regard new rule of TCS in which sale of goods of services in cash above Rs. 2 Lakh attracts 1% TCS and the motor vehicle above Rs. 10 lakh attracts 1% TCS. 

    So the changes are major and you should know about the new rates as well as new threshold limit for TDS and TCS applicable from 1 June 2016.

    Changes in TDS Threshold Limit wef 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
    TDS and TCS Rates and Threshold Limit Changes and New Rates wef 1 June 2016

    Changes in TDS rates wef 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 wef 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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