Amendment of section 194H.
77. In section 194H of the Income-tax Act, with effect from the 1st day of June, 2016,-
(i) for the words “ten per cent.”, the words “five per cent.” shall be substituted;
(ii) in first proviso, for the words “five thousand rupees”, the words “fifteen thousand rupees” shall be substituted.
Notes on Clauses:
Clause 77 of the Bill seeks to amend section 194H of the Income tax Act relating to commission or brokerage.
Under the existing provisions contained in the aforesaid section, deduction of income-tax at the rate of ten per cent. shall be made in a case where the amount of income, of the aggregate of the amounts of income relating to commission or brokerage, credited or paid or likely to be credited or paid during the financial year, to the account of, or to, the payee exceed five thousand rupees.
It is proposed to reduce the said rate of tax deduction from ten per cent. to five per cent. It is further proposed to increase the said threshold limit from five thousand rupees to fifteen thousand rupees.
These amendments will take effect from 1st June, 2016.
