Rationalization of TDS/TCS Rates
Reduction in multiplicity of rates to ease compliance burden
| S. No. | Section of the Act | Present TDS/TCS Rate | Proposed TDS/TCS Rate |
|---|---|---|---|
| 1 | Section 194LBC - Income in respect of investment in securitization trust | 25% if payee is Individual or HUF and 30% otherwise | 10% |
| 2 | Sub-section (1) of section 206C - TCS on timber or any other forest produce | 2.5% | 2% |
| 3 | Sub-section (1G) of section 206C β TCS on remittance under LRS for purpose of education | 0.5% after βΉ7 lakhs | Nil |
Increased TDS/TCS Thresholds
Updated thresholds to reduce the burden of tax deduction and collection
| S. No. | Section of the Act | Present TDS/TCS Threshold (Rs) | Proposed TDS/TCS Threshold (Rs) |
|---|---|---|---|
| 1 | 193 - Interest on securities | Nil | 10,000 |
| 2 | 194A - Interest other than securities | (i) 50,000 for senior citizen; (ii) 40,000 in case of others when payer is bank, cooperative society and post office; (iii) 5,000 in other cases | (i) 1,00,000 for senior citizen; (ii) 50,000 in case of others when payer is bank, cooperative society and post office; (iii) 10,000 in other cases |
| 3 | 194 β Dividend, for an individual shareholder | 5,000 | 10,000 |
| 4 | 194K - Income in respect of units of a mutual fund or specified company or undertaking | 5,000 | 10,000 |
| 5 | 194B - Winnings from lottery, crossword puzzle etc. | Aggregate of amounts exceeding βΉ10,000 during the financial year | βΉ10,000 in respect of a single transaction |
| 6 | 194BB - Winnings from horse race | N/A | N/A |
| 7 | 194D - Insurance commission | 15,000 | 20,000 |
| 8 | 194G - Income by way of commission, prize etc. on lottery tickets | 15,000 | 20,000 |
| 9 | 194H - Commission or brokerage | 15,000 | 20,000 |
| 10 | 194-I Rent | βΉ2,40,000 during the financial year | βΉ50,000 per month or part of a month |
| 11 | 194J - Fee for professional or technical services | βΉ30,000 | βΉ50,000 |
| 12 | 194LA - Income by way of enhanced compensation | βΉ2,50,000 | βΉ5,00,000 |
| 13 | 206C(1G) β Remittance under LRS and overseas tour program package | βΉ7,00,000 | βΉ10,00,000 |