Presented by
CA DIVYESH V. MEHTA
Vinod K Mehta & Co.
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TDS Provision :• Revise the existing threshold.
• Rates of deduction of tax have also been reduced.
• Revision will provide relief to small taxpayers.
Vinod K Mehta & Co.
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Revision of threshold limits & TDS rates:
Section
Nature of payment
Existing
Proposed Existing
Threshold Threshold Rate of
Limit (Rs.) Limit (Rs.) TDS
Proposed
Rate of
TDS
192A
Payment of accumulated
balance due to an
employee
30,000
50,000
10%
No
Change
194BB
Winnings from Horse
Races
5,000
10,000
30%
No
Change
194C
Payments to contractor
Aggregate
annual limit
of 75,000
Aggregate
annual limit
of 1,00,000
1% to
Individual
& HUF
No
Change
2% to any
other
person
Vinod K Mehta & Co.
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Section Nature of payment
Existing
Threshold
Limit (Rs.)
Proposed
Threshold
Limit (Rs.)
Existing Proposed
Rate of Rate of
TDS
TDS
194LA
Payment of
Compensation on
acquisition of certain
immovable property
2,00,000
2,50,000
10%
No
Change
194D
Insurance
Commission
20,000
15,000
10%
5%
194G
Commission on sale
of lottery tickets
1,000
15,000
10%
5%
194H
Commission or
brokerage
5,000
15,000
10%
5%
Vinod K Mehta & Co.
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Section Nature of payment
Existing
Threshold
Limit (Rs.)
Proposed
Threshold
Limit (Rs.)
Existing Proposed
Rate of Rate of
TDS
TDS
194DA
Payment in respect
of life Insurance
policy
1,00,000
No Change
2%
1%
194EE
Payment in respect
of NSS Deposit
2,500
No Change
20%
10%
194K &
194L
Income in respect of
units & Payment of
compensation on
acquisition of capital
Asset
Proposed to be omitted
Vinod K Mehta & Co.
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New Provisions
Section
Nature of payment
Proposed Threshold Limit (Rs.)
194LBC
Investment in a Securitization
trust
25% if the payee is an individual or a
Hindu undivided family
30% if the payee is any other person.
194LBB
Units of Investment Fund
Vinod K Mehta & Co.
(a) at the rate of 10% where the
payee is a resident.
(b) at the rates in force, where the
payee is a non-resident (not
being a company) or a foreign
company.
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TDS Return
CBDT has vide notification no. 30/2016 dated 29-04-2016 has
revised the due date for filing TDS returns for Government and
Non-Government Deductors w.e.f 1st June, 2016.
Quarter
Due date of
Payment
Due dates
for filing
TDS return
April to June
7th July
31th July
July to
September
7th October
31th October
October to
December
7th January
31th January
January to March 7th May
Vinod K Mehta & Co.
31th May
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New TCS Provision (Sec 206C (1D) & (1F):Section
Nature of payment
Existing
Threshold
Limit (Rs.)
Proposed
Threshold
Limit (Rs.)
206C(1F)
Sale of motor vehicle > Rs. 10 Lakh
(Applicable whether Cash or Cheque)
--
1%
206C(1D) Sale in goods/services in Cash > 2 Lakh
-(Applicable only if in Cash or partly in Cash)
(other than bullion and jewellery )
(other than payments on which TDS is
made)
1%
206C(1D) Sale of Bullion > 2Lakh
-(Applicable only if in Cash or partly in Cash)
1%
206C(1D) Sale of Jewellery > 5Lakh
-(Applicable only if in Cash or partly in Cash)
1%
Vinod K Mehta & Co.
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On motor vehicles above Rs. 10 lakhs:
• Mandatorily provide his PAN from 1st January 2016 on sale or purchase of any
motor vehicle without any limit which requires registration (other than twowheeled vehicles).
NEW CAR DEALER
Bill Amount
12,00,000
TCS @ 1%
12,000
Total Amount 12,12,000
Vinod K Mehta & Co.
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On all cash transactions above Rs. 2 lakhs:
The present provisions cover cash transactions for sale of bullion and jewellery.
To discourage cash transactions, it is proposed to also cover sale, exceeding Rs. 2
lakhs, in cash, of any goods or services (other than bullion or jewellery which
are separately covered).
Tax is not required to be collected at source from amounts on which tax is
deducted at source by the payer under Chapter XVII-B.
Particulars
Bill No. 1
Bill No. 2
Bill No. 3
Sale Value
8,00,000
5,00,000
1,90,000
Cheque
7,90,000
5,00,000
1,80,000
Cash
10,000
-
10,000
TCS
8,000
Nil
Nil
Whether
buyer is a
dealer in
goods or
purchases for
his uses for
his personal
consumption
Limit of Rs. 2,00,000 is per transaction & not cumulative
Vinod K Mehta & Co.
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Bill Amount = 3,00,000
TCS @ 1%
Bill Amount = 1,90,000
TCS - N.A
Bullion
Bill Amount = 6,00,000
TCS @ 1%
Bill Amount = 4,50,000
TCS – N.A
Jewellery
Vinod K Mehta & Co.
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Technical Consultant
Bill raised
Particular
Bill No. 1
Bill No.2
Fees
300000
270000
Cheque
250000
250000
Cash
50000
20000
TDS
30000
NIL
(Due to Certificate
from A.O)
TCS
N.A
1%
(As TDS not
deducted)
Vinod K Mehta & Co.
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TCS Return
The seller\ contractor i e. Deductor has to file a quarterly return in form
27EQ and in Form 27A and has to issue the TCS certificate to Deductee in
Form 27D on or before following Due Date
Quarter
Due date of
Payment
Due dates
for filing
TCS return
Due dates
for issuing
TCS
certificate
April to June
7th July
15th July
30th July
July to
September
7th October
15th October
30th October
October to
December
7th January
15th January
30th January
15th May
30th May
January to March 7th May
Section 206C (7) prescribe Interest at the rate of 1% per month or part
thereof for late collection and/or late deposit of TCS with Government.
Vinod K Mehta & Co.
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CA Divyesh V Mehta
Partner
Vinod K Mehta & Co.,
(Chartered Accountants)
# B-5, Satyam Shopping Centre,
2nd Floor,M.G. Road,
Ghatkopar (East),
Mumbai-400077
Email id: [email protected];
Contact Nos:+91 9819238681
+ 91 22 21024280:+91 22 67255633
Vinod K Mehta & Co.
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