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%
|
