Amendments in Tax Deducted at Source (TDS):-

Below is a detailed section-wise summary of the amendments:

1. Section 194D: Payment on Insurance Commission (for persons other than companies)

   • Existing Provision: Any payment to a resident for commission or rewards related to insurance business (including renewal or revival) attracts TDS at 5%.

   • Amended Provision: TDS rate will be reduced from 5% to 2%, effective from April 1, 2025.

     
     

2. Section 194DA: Payment in respect of Life Insurance Policy

   • Existing Provision: Any payment made to a resident under a life insurance policy, excluding amounts exempt under section 10(10D), is subject to TDS at 5%.

   • Amended Provision: TDS rate reduced to 2%, effective from October 1, 2024.

     
     

3. Section 194F: TDS on Payments for Repurchase of Mutual Fund or UTI Units

   • Existing Provision: TDS at 20% on payments as per section 80CCB.

   • Amended Provision: This section has been repealed, effective from October 1, 2024.

     
     

4. Section 194G: Commission on Sale of Lottery Tickets

   • Existing Provision: TDS at 5% on any commission, remuneration, or prize related to the sale of lottery tickets.

   • Amended Provision: TDS rate reduced to 2%, effective from October 1, 2024.

     
     

5. Section 194H: Payment of Commission/Brokerage

   • Existing Provision: TDS at 5% on any commission or brokerage (excluding insurance commissions covered by section 194D).

   • Amended Provision: TDS rate reduced to 2%, effective from October 1, 2024.

     
     

6. Section 194IB: TDS on Rent of Property

   • Existing Provision: Individuals or HUFs paying rent exceeding ₹50,000 per month must deduct TDS at 5%.

   • Amended Provision: TDS rate reduced to 2%, effective from October 1, 2024.

     
     

7. Section 194IA: TDS on Purchase of Immovable Property (Clarification)

   • Existing Provision: TDS at 1% of the consideration or stamp duty value (whichever is higher) on immovable property transfers of ₹50 lakhs or more.

   • Amended Provision: TDS applies if the total property value is ₹50 lakhs or more, regardless of multiple buyers/sellers. Effective from October 1, 2024.

     
     

8. Section 194M: Payment of Certain Sums by Individuals or HUFs

   • Existing Provision: TDS at 5% on payments exceeding ₹50 lakhs by individuals or HUFs not covered under sections 194C, 194H, or 194J.

   • Amended Provision: TDS rate reduced to 2%, effective from October 1, 2024.

     
     

9. Section 194O: TDS on E-commerce Operators

   • Existing Provision: E-commerce operators must deduct TDS at 1% on sales or services facilitated through their platform.

   • Amended Provision: TDS rate reduced to 0.1%, effective from October 1, 2024.