Amendments in TDS shall be substituted w.e.f 01.06.2016

S.no

Changes In following particulars

Change in Existing provision

Old Provision

1.

In Sec 192A, “Payment of accumulated balance due to an employee”

New Exemption Limit exceed to 50000

Exemption Limit was 30000.00

2.

In sec 194BB “Winning from horse race”

New Exempt limit is 10000.00

Exemption Limit was 5000.00

3.

In sec 194C “Payment to Contractors”

New limit of 100000.00 in case aggregate payment during the year.

Limit was 75000.00

 4.

In Sec 194D “Insurance Commission”

Exemption limit reduced to 15000.00

Limit was 20000.00

5.

In Sec 194DA “Payment in respect of LIC policy”

Rate of TDS reduced to 1% for all person

Rate was 2% for all on exemption limit of 100000.00

6.

In sec 194EE “Payment out of deposits under NSS”

Rate of TDS reduced to 10% for Other than Individual/HUF.

Rate was 20%

7.

In Sec 194G “Commission on Lottery”

Exemption Limit exceeds to 15000.00

Limit was 1000.00

7a

In Sec 194G “Commission on Lottery”

Rate of TDS reduced to 5% for all person

Rate of TDS was 10% for all person

8.

In sec 194H “ Commission/Brokerage”

Exemption Limit exceeds to 15000.00

Limit was 5000.00

8a

In sec 194H “ Commission/Brokerage”

Rate of TDS reduced to 5% for all person

Rate of TDS was 10% for all person.

9.

Sec 194K and 194L

Omitted from Act

10.

In sec 194LA “Immovable Property”

Exemption Limit exceeds to 250000.00

Limit was 200000.00

11.

In sec 194LBA “Certain income from units of a business trust”

Addition of clause 23FC

12.

In Sec 194LBB “Income in respect of units of investment fund”

Addition of Non-resident as a payee, in this case the rate in force may be same as for Resident, which is 10%

Only Resident was consider as payee.

13.

Insertion of New section 194LBC “Income in respect of investment in securitization trust”

After section 194LBB of the Income-tax Act, the following section shall be inserted with effect

from the 1st day of June, 2016, namely:—

‘194LBC. (1) Where any income is payable to an investor, being a resident, in respect of an

investment in a securitization 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) twenty-five per cent (25%)., if the payee is an individual or a Hindu undivided family;

(ii) thirty per cent (30%)., if the payee is any other person.