Amendments regarding changes in TDS & TCS rates, threshold limit(cut-off amount) w.e.f. 1st day of June, 2016 in Budget 2016.
Based on the Budget 2016-17 proposals, the revised TDS & TCS rates & threshold limits of TDS applicable for the Assessment Year 2017-18 (Financial Year 2016-17) w.e.f. 01-06-2016 is tabulated below:
| Changes in TDS Threshold Limits & Rates | ||||||||
| Section | Nature of Payment | When to Deduct | Threshold Limits | TDS Rates | If no PAN or Invalid PAN | |||
| Old | w.e.f. 01-06-2016 | Old Rates Ind./ HUF- % | Proposed Rates Ind./ HUF- % | Proposed Rates Others- % (Co./ Firm/ LLP/ Local Authority/ Co-op. Soc.) | ||||
| 192 | Salaries | Monthly- at the time of payment where estimated yearly net taxable salary exceeds tax free limit. | Income tax slab | Avg. Rate | Avg. Rate | – | 30 | |
| 192A | Premature withdrawals from EPF/ Payment of accumulated balance due to an employee | When the amount of payment or aggregate amount of payment exceeds threshold Limit. | 30,000 | 50,000 | 10 | – | 20 | |
| 193 | Interest on Securities | At the time of credit or payment, whichever is earlier | 10,000 | 10 | 10 | 20 | ||
| Interest on Debentures | 5,000 | |||||||
| 194 | Deemed Dividend u/s 2(22). Dividend other than listed companies/ Dividend other than declared u/s 115-0. | Before making payment to’ shareholder, other than dividend declared U/s. 115-0. | 2,500 | 10 | 10 | 20 | ||
| 194A | Interest other than interest on securities including recurring deposits w.e.f. 01-06-2015 Bank/ Post Office | At the time of credit or payment, whichever is earlier. | 10,000 | 10 | 10 | 20
| ||
| Others | 5,000 | |||||||
| 194B | Lottery/ Cross Word Puzzle | When the amount of payment exceeds threshold Limit. | 5,000 | 10,000 | 30 | 30 | 30 | |
| 194BB | Winning from Horse Race | When the amount of payment exceeds threshold Limit. | 5,000 | 10,000 | 30 | 30 | 30 | |
| 194C(1) | Contracts | At the time of credit or payment, whichever is earlier. | 75,000 p.a. | 1,00,000 p.a. (30,000- single payment) | 1 | 2 | 20 | |
| 194C(2) | Sub-contracts & Advertisement contracts | 1 | 2 | |||||
| 194D | Insurance Commission | At the time of credit or payment, whichever is earlier. | 20,000 | 15,000 | 10 | 5 | 5 | 20 |
| 194DA | Life Insurance Policy | At the time of payment when the amount or the total amount during the whole year exceeds threshold Limit. | 1,00,000 | 2 | 1 | – | 20 | |
| 194E | Non-resident sportsmen/ Sports Associations | At the time of credit or payment, whichever is earlier. | 20 | 20 | 20 | |||
| 194EE | NSS Deposits | At the time of credit or payment, whichever is earlier. | 2,500 | 20 | 10 | – | 20 | |
| 194F | Repurchase of units by MF/ UTi | At the time of credit or payment, whichever is earlier. | 20 | 20 | 20 | |||
| 194G | Commission on Lottery Tickets | At the time of credit or payment, whichever is earlier. | 1,000 | 15,000 | 10 | 5 | 5 | 20 |
| 194H | Commission/ Brokerage | At the time of credit or payment, whichever is earlier. | 5,000 | 15,000 | 10 | 5 | 5 | 20 |
| 194I | Rent on Machinery, Plant or Equipment | At the time of credit or payment, whichever is earlier. | 1,80,000 | 2 | 2 | 20 | ||
| Rent on Land & building or Furniture & Fixtures | 1,80,000 | 10 | 10 | |||||
| 194IA | Transfer of immovable property other than agricultural land | At the time of credit or payment, whichever is earlier, when the land is situated in specified area. | 50,00,000 | 1 | 1 | 20 | ||
| 194J | Professional/ Technical Charges/ Royalty/ Non-compete fees/ Payments to Directors | At the time of credit or payment, whichever is earlier. | 30,000 | 10 | 10 | 20 | ||
| 194K | Income in respect of Units | Proposed to be omitted w.e.f. 1st June 2016. | ||||||
| 194L | Payment of compensation on acquisition of Capital Asset | |||||||
| 194LA | Compensation on acquisition of immovable property | At the time of credit or payment, whichever is earlier. | 2,00,000 | 2,50,000 | 10 | 10 | 20 | |
| 194LB | Interest from an Infrastructure Bond | At the time of credit or payment, whichever is earlier. | 5 | 5 | 20 | |||
| 194LBA | Distribution of income by a real estate business investment trust | At the time of credit or payment, whichever is earlier. | 10 | 10 | 20 | |||
| 194LBB | Payment to a unit holder in respect of units of investment fund u/s 115UB | At the time of credit or payment, whichever is earlier. | 10 | 10 | 20 | |||
| 194LBC | Investment in a securitization trust | When the amount of payment exceeds threshold Limit. | 25 | 30 | 20 | |||
| 194LC | Interest to NR from Indian Co./ Business Trusts engaged in certain business | At the time of credit or payment, whichever is earlier. | 5 | 5 | 20 | |||
| 194LD | Interest on certain govt. Bonds/ Securities payable on or after 01-06-2013 but before 01-06-2017 | At the time of credit or payment, whichever is earlier. | 5 | 5 | 20 | |||
| 194(1)(ba) | Remuneration or commission paid to Director | Nil | 10 | 10 | – | |||
| 195/ 196B/ 196C/ 196D/ 196E | Payment to NR | At the time of credit or payment, whichever is earlier. | Rates in force | Rates in force | 20 | |||
| 206C | Sale of Motor Vehicle | When the amount of payment exceeds threshold Limit. | 10,00,000 | 1 | 1 | – | ||
| Sl. | Nature of Goods | TCS Rates- % |
| 1 | Alcoholic liquor for human consumption | 1 |
| 2 | Tendu Leaves | 5 |
| 3 | Timber obtained under forest lease | 2.5 |
| 4 | Timber obtained by any mode other than a forest lease | 2.5 |
| 5 | Any other forest produce not being tendu or timber leaves | 2.5 |
| 6 | Scrap | 1 |
| 7 | Parking Lot | 2 |
| 8 | Toll Plaza | 2 |
| 9 | Mining and Quarrying | 2 |
| 10 | Minerals, being coal or lignite or iron ore | 1 |
| 11 | Bullion or Jewellery (if the sale consideration is paid in cash exceeding INR 2 lakhs) | 1 |
| 12 | Motor Car (if the sale consideration is paid in cash exceeding INR 10 lakhs) | 1 |