TDS threshold rationalization TDS provisions have various thresholds of amount of payment or amount of income, beyond which tax is required be deducted. It is proposed to rationalize these thresholds as below

S. No

Section

Current threshold

Proposed threshold

1.

193 - Interest on securities

Nil

Rs. 10,000/-

2.

194A - Interest other than Interest on securities

(i) Rs. 50,000/- for senior citizen;

(ii) Rs. 40,000/- in case of others when payer is bank, cooperative society and post office

(iii) Rs. 5,000/- in other cases

(i) Rs. 1,00,000/- for senior citizen

(ii) Rs. 50,000/- in case of others when payer is bank, cooperative society and post office

(iii) Rs. 10,000/- in other cases

3.

194 - Dividend for an individual shareholder

Rs. 5,000/-

Rs. 10,000/-

4.

194K - Income in respect of units of a mutual fund or specified company or undertaking

Rs. 5,000/-

Rs. 10,000/-

5.

194B - Winnings from lottery, crossword puzzle, etc.

Aggregate of amounts exceeding Rs. 10,000/- during the financial year

Rs. 10,000/- in respect of a single transaction

6.

194BB - Winnings from horse race

7.

194D - Insurance commission

Rs. 15,000/-

Rs. 20,000/-

8.

194G - Income by way of commission, prize etc. on lottery tickets

Rs.15,000/-

Rs. 20,000/-

9.

194H - Commission or brokerage

Rs. 15,000/-

Rs. 20,000/-

10.

194-I Rent

Rs. 2,40,000/- during the financial year

Rs. 50,000/- per month or part of a month

11.

194J - Fee for professional or technical services

Rs. 30,000/-

Rs. 50,000/-

12.

194LA - Income by way of enhanced compensation

Rs. 2,50,000/-

Rs. 5,00,000/-