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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