Budget 2016 - Income Tax Provisions Change: CHANGES IN TAX DEDUCTION AT SOURCE

Budget 2016 - Income Tax Provisions Change: CHANGES IN TAX DEDUCTION AT SOURCE:                                                                  CHANGES IN TAX DEDUCTION AT SOURCE Revision in respect of Threshold Lim...

CHANGES IN TAX DEDUCTION AT SOURCE

                                                                CHANGES IN TAX DEDUCTION AT SOURCE

Revision in respect of Threshold Limit:-

SECTION	HEAD	PRESENT LIMIT	PROPOSED LIMIT
192A	Payment of accumulated balance due to an employee	30,000	50,000
194BB	Winnings from Other Game	5,000	10,000
194C	Payments to Contractors/Sub-contractors	75,000	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

Revision in respect of change of Percentage Rate:-

SECTION	HEAD	PRESENT TDS RATE	PROPOSED TDS RATE
194DA	Payment in respect of Life Insurance Policy	2%	1%
194EE	Payments in respect of NSS Deposits	20%	10%
194G	Commission on sale of lottery tickets	10%	5%
194H	Commission or brokerage	10%	5%
194D	Insurance commission	10%	5%

ABOVE AMENDMENT SHALL BE EFFECTIVE FROM 1^ST JUNE 2016.

Budget 2016 Highlights ( Changes in Individual Taxes)

Budget 2016 has been presented by honorable Finance Minister on 29th Feb 2016. Budget Highlights of Present budgets are given Below:- 

1. In the Finance Budget 2016, No income tax rebate is given to the individual earning total income above Rs. 5,00,000. However, tax benefit of Rs. 3,000 (Excluding Cess) is given by way of increasing Limit of 87A from Rs. 2000 to 5000.

2. In view to more tax the HNI Taxpayers, Surcharge has been increased from 12% to 15%. Presently surcharge is applicable to taxpayer who are having total income of Rs. 1 Crore or more.

3. In view of the home of each Individual, it is proposed to give a tax benefit of Rs. 50,000 to each individual who have bought the house upto Rs. 50 Lacs and having loan of Rs. 35 Lacs.

4. It is proposed to extend the time of 3 year to 5 year in case of Allowance of Pre construction Interest.

5. It is also proposed to extend the limit of 80GG of Rent expenditure from Rs, 24000 to 60,000


CA Neeraj Bansal

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