TDS provisions as per budget 2016

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.