A. TDS – Changes in Existing Threshold Limits

Present Section	Heads	Existing threshold limits	Proposed threshold limits
192A	Payment of accumulated balance due to an employee in EPF	Rs.30,000/-	Rs.50,000/-
194BB	Winnings from Horse Race	Rs.5,000/-	Rs.10,000/-
194C	Payments to Contractors	Aggregate annual limit of Rs.75,000/-	Aggregate annual limit of Rs.1,00,000/-
194LA	Payment of Compensation on acquisition of certain Immovable Property	Rs.2,00,000/-	Rs.2,50,000/-
194D	Insurance Commission	Rs.20,000/-	Rs.15,000/-
194G	Commission on sale of lottery tickets	Rs.1,000/-	Rs.15,000/-
194H	Commission on Brokerage	Rs.5,000/-	Rs.15,000/-

 

 

B. TDS – Proposed Changes in Rates

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 of Brokerage	10%	5%
194K	Income in respect of units	To be omitted w.e.f. 01-06-2016
194L	Payment of compensation of acquisition of capital asset	To be omitted w.e.f. 01-06-2016

C. Non Resident: TDS shall not be deducted at a higher rate in case of non-residents not having PAN, subject to prescribed condition.