How the Upcoming Budget Will Impact the Income Tax Payers!

Reduction in the rates of TDS

All the recommendations made by the Parthasarthi Shome and Justice RV Easwar-led Committee suggest that these will be reduction of the rates of TDS and increase in the threshold limits for a income taxpayer. The suggestions involve reduction in TDS rates in case of interest and commission for individuals and Hindu Undivided Families (HUFs) to 5 percent from 10 percent at present.

Increase in the annual limits for TDS liability

If the recommendations made by the committee are accepted by the government, then there can be a significant revamp in the threshold limits for TDS. These limits have been left untouched for many years now and as a result have been low. The panel has suggested increasing annual limit for TDS liability on payment of bank interest to Rs 15,000 from Rs 10,000, interests on NSS accounts from Rs 2,500 to Rs 15,000, and rent income from Rs 1,80,000 to Rs 2,40,000. Lottery winnings and other income from winnings have been proposed to reduce to less than 30 percent.

Read Also:
Sensex Extends Gains, Up 58 Points
Best E-Term Life Insurance for People We Care About