Table 3: Increase in threshold limit of deduction of tax at source on various payments mentioned in the relevant sections of the Act –
Section 192A is referred by the EPF dept while calculating the tax at the time of EPF withdrawal in regards to such employee who have not having Pan card & not submitted form No 15-G also there are some state where in minimum wages are low & the contribution is deducted & the amount of is less then 50000 where in service is less then 2 years or three years it is good news for EPF subscriber
Present Section | Heads | Existing Threshold Limit (Rs.) |
Proposed Threshold Limit (Rs.) |
192A | Payment of accumulated balance due to an employee | 30,000 | 50,000 |
194BB | Winnings from 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 or brokerage | 5,000 | 15,000 |
Present Section | Heads | Existing Rate of TDS (%) |
Proposed Rate of TDS (%) |
194DA | Payment in respect of Life Insurance Policy | 2% | 1% |
194EE | Payments in respect of NSS Deposits | 20% | 10% |
194D | Insurance commission | Rate in force (10%) | 5% |
194G | Commission on sale of lottery tickets | 10% | 5% |
194H | Commission or brokerage | 10% | 5% |
Present Section | Heads | Proposal |
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 |
–
Leave a Reply