Finance Bill proposes rationalization of TDS rates and threshold limits
Sr. No. Section Provision Existing Provision Proposed amendment
1 192A
2 194BB Winning from Horse Race
3 194C Payment to Contractors
4 194D
Rate of TDS : 10% Rate of TDS : 5%
5 194DA Rate of TDS : 2% Rate of TDS : 1%
6 194EE Rate of TDS :20% Rate of TDS : 10%
7 194G
Rate of TDS : 10% Rate of TDS : 5%
8 194H
Rate of TDS : 10% Rate of TDS : 5%
9 194-I
10 194LA
11 194LBB Rate of TDS: 10% Rate of TDS:
(a) 10% in case resident
12 206C Collection of TCS at 1%
13 206AA(w.e.f 1st June, 2016)
Payment of accumulated
balance from provident
fund account No TDS if payment does
not exceed Rs. 30,000 No TDS if payment does
not exceed Rs. 50,000
No TDS if payment does
not exceed Rs. 5,000 No TDS if payment does
not exceed Rs. 10,000
No TDS if payment does
not exceed Rs. 75,000 No TDS if payment does
not exceed Rs. 1,00,000
Payment of Insurance
Commission No TDS if payment does
not exceed Rs. 20,000 No TDS if payment does
not exceed Rs. 15,000
Payment in respect of Life
Insurance Policies
Payments in respect of
NSS Deposits
Commission on sale of
lottery tickets No TDS if payment does
not exceed Rs. 1,000 No TDS if payment does
not exceed Rs. 15,000
Payment of commission
or brokerage No TDS if payment does
not exceed Rs. 5,000 No TDS if payment does
not exceed Rs. 15,000
Deduction of tax from
payment of Rent No TDS if payment does
not exceed Rs. 1,80,000 No TDS even if payment
exceeds Rs. 1,80,000
provided landlord
furnishes to the payer a
self declaration in
prescribed Form. No.
15G/15H.
Payment of
Compensation on
comoulsory acquisition of
certain Immovable
Property No TDS if payment does
not exceed Rs. 2,00,000 No TDS if payment does
not exceed Rs. 2,50,000
Income in respect of
Units of Investment
Funds
(b) Rates in Force in case
of non-resident
Collection of TCS at 1%
in case of:
(a) Purchase of motor
vehicle, if value thereof
exceeds Rs. 10 lakhs
(b) Purchase of any goods
or service, if value thereof
exceeds Rs. 2 lakhs and
the payment thereof is
made in cash.
Exemption from
Requirement of
furnishing PAN to certain
non-resident. Exemption from Section
206AA was allowed only
in case of payment of
interest on long-term
bonds as referred to in
section 194LC Section 206AA is
proposed to be amended
to provide exemption
from withholding at
higher rate in case of
other payments made to
nonresident as well
subject to certain
conditions as may be
prescribed.
3
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