The high-level committee under a former Delhi High Court judge to suggest simplification of Income Tax laws has submitted its report on TDS (tax deduction at source) reforms as one of the core recommendations for Union Budget 2016.
The report, accessed by Times of India, says, “TDS rates for interest income and commission need to be rationalized, the committee suggested that these should be halved to 5 percent”.
-The committee has proposed to raise TDS limit on bank deposit interest from Rs 10,000 to Rs 15,000.
– It has proposed to raise TDS limit on interest on securities from Rs 2,500 to Rs 15,000.
-It has proposed to raise TDS limit on payment in respect of NSS from Rs 2,500 to Rs 15,000.
-The proposal will especially benefit senior citizens whose main area of invest include Bank FDs and other small saving securities and schemes.
-It will also benefit consultants, brokers, house owners, small depositors, freelancers who pay TDS on their income.