Tds amendment

TDS 828 views 4 replies

CA RAJA SAHA

Dy Manager(F &A)

321 Points Joined July 2010


	NECESSARY IMPORTANT AMENDMENTS IN TDS RATES in Finance Bill 2016

SECTION	Nature of Tranasaction	INCREASE IN EXEMPTION LIMIT		Amendment in TDS Rates
		Exsiting	Current w.e.f. 01.06.2016	Exsiting	Current w.e.f. 01.06.2016


192A	Payment of Accmulated PF to employee	30000	50000	10%	10%

194BB	Winning from Horse Race	5000	10000	30%	30%

194C	Aggregate Contractual Payment	75000	100000	1% /2%	1% /2%

194D	Insurance Commission	20000	15000	10%	10%

194DA	Payment in respect of Life Insurance Policy	100000	100000	2%	1%

194G	Commission on Lottery Tickets	1000	15000	10%	5%

194H	Brokerage payment	5000	15000	10%	5%

194LA	Payment of Compensation on acqusition of immoveable property	200000	250000	10%	10%

194LBC	Income from investment in Securitisation Trust	0	0	0	25%/30%

206C(1)(Viii)	Motor vehicle value exceeding 10,00,000	0	1000000	0	1%
206C(1D)	Sale in cash of any goods (other than bullion and jewellery),
	or providing of any services (other than payments on
	which tax is deducted at source under Chapter XVII-B)
	exceeding two lakh rupees.(Rs.2 Lakh).	0	200000	0	1%

Replies (4)

Sathish M

Management Accountant

40581 Points Joined June 2010

Thank you sharing TDS updates

srikumar

audit staff

1203 Points Joined May 2013

Please explain sec 192A I don't know about the section please help me

srikumar

audit staff

1203 Points Joined May 2013

Please explain sec 192A I don't know about the section please help me

Vishal Goel

Chartered Accountant

1693 Points Joined April 2014

Income Tax shall be deducted at source (TDS) at the following rates,if at the time of payment of the accumulated PF balance is more than or equal to Rs. 30000/-,with service less than 5 years:-

a) TDS will be deducted @ 10% , provided PAN is submitted, (In case Form No. 15G or 15H is submitted by the member, then no TDS shall be deducted)
b) TDS will be deducted @ maximum marginal rate ({.e. 34.608%) if a member falls to submit PAN (and Form No 15G or 15H),

TDS shall not be deducted In respect of the following cases--

Transfer of PF from one account to another PF account.
Termination of service due to ill health of member, discontinuation/contraction of business by employer, completion of project or other cause beyond the control of the member.
If employee withdraws PF after a period of five years of continuous service, including service with former employer.
If PF payment is less than Rs. 30,000/-- but the member has rendered service of less than 5 Years.
If employee withdraws amount more than or equal to Rs, 30000, with service less than 5 years but submits Form I5G/15H along with their PAN

Update: Budget 2016-17 has proposed to increase the limit of Rs 30, 000 to Rs 50, 000 with effect from the 1st day of June, 2016.