Yes, the TDS threshold for fees for professional or technical services (Section 194J) has been increased from ₹30,000 to ₹50,000 per financial year, effective from April 1, 2025, as per the Budget 2025 updates. This means TDS is only deducted if total payments in a financial year exceed ₹50,000.
The TDS exemption limit for dividend and mutual fund income will be raised to Rs. 10,000/- starting April 2025. This means TDS will only be deducted when your total earnings exceed Rs. 10,000/- per year, making tax deductions less frequent.
Tax must be deducted only when total professional or technical service payments to a person exceed ₹30,000 in a financial year. This limit applies per payee per year, not per individual payment. From the financial year 2025-26 onwards, the threshold has been increased to ₹50,000.
For FY 2025-26, the current TDS exemption limit has been hiked to ₹50,000 for regular citizens and ₹1 lakh for senior citizens. For example, if you earn an FD interest of ₹60,000, the bank would deduct TDS of 10%.
The standard TDS rate is 10%, but there are exemption limits for individuals below 60 years (Rs. 50,000) and senior citizens (Rs. 100000). To avoid TDS deduction, you can submit Form 15G or 15H to your bank.
TDS on sale of property by NRI must be deducted by the buyer under Section 195 before making payment. As per Budget 2024, the TDS rate on purchase of property from NRI (Section 195) is 12.5% for LTCG and as per slab rates for STCG, with no indexation benefits.
Rs. 50,000 per month 5 - - 20 The Threshold Limit is Rs. 50,000 per month for the Payment of rent by an individual or HUF not liable to tax audit and 5% TDS is applicable on resident Indians.
The Saver's Guide to Beating TDS in 2025
Thanks to increased exemption thresholds and streamlined rules, it's now simpler to let your savings grow without surprise deductions nibbling away at them. The increase in TDS thresholds is the government's effort to ease the tax burden on small taxpayers.
With the recent changes in the Indian Income Tax Act, it's now possible to pay zero tax on a salary of up to Rs. 7 lakhs. To pay zero tax on a 7 lakh salary using the old tax regime, maximize deductions: Claim Tax Rebate under Section 87A.
TDS Filing Software: Avoid These 7 Common Mistakes for Accuracy
This year's Budget has brightened the financial outlook for lakhs of senior citizens by announcing a significant change in Tax Deducted at Source (TDS) rules. The threshold for TDS on interest income for senior citizens has now been doubled from ₹50,000 to ₹1 lakh per financial year.
The general rule is that the payer has to deduct TDS if the amount of such interest paid or credited is more than Rs. 50,000 in a financial year. But if the payer is a Bank, Cooperative society, or Post office, the TDS will be deducted only if the interest is more than Rs. 40,000 / 50,000 for senior citizens in a year.
Here's a summary of key changes for the 2025 tax year. The seven federal tax brackets (10%, 12%, 22%, 24%, 32%, 35%, 37%) are now permanent. Standard deductions increased, plus a new “bonus” deduction for older adults. Child tax credit increased to $2,200 per qualifying child.
The best TDS (Total Dissolved Solids) level for drinking water is generally considered to be between 50-150 ppm (parts per million) for excellent taste and mineral balance, though up to 300-500 ppm is acceptable, with levels above that potentially affecting taste or indicating unwanted contaminants, according to sources like the EPA and health experts. Water below 50 ppm can lack minerals, while very high TDS (over 500 ppm) might taste bitter or salty and warrant filtration.
How does the new TDS rule benefit general citizens? The exemption limit for TDS on interest income has been increased from ₹40,000 to ₹50,000, reducing the tax burden on small depositors.
The limit for tax deduction on interest for senior citizens is being doubled from the present Rs 50,000 to Rs 1 lakh . The FM said, TDS on rent is being increased to Rs 6 lakh. Rationalise TDS by reducing the number of rates and thresholds above which TDS is deducted.
It is proposed to reduce the TDS rate under Section 194LBC from 25% and 30% to 10%, considering that the sector is now well-organised and regulated. This amendment will come into effect from 1 April 2025. This is a welcome amendment, as the earlier rates were very high.
Explanation: The tax shall be deducted at the rate of 2% under section 194-IB if the rent paid or payable exceeds Rs. 50,000 per month or part of the month.
It represents the total tax liability. In TDS, the tax is deducted at the source by the deductor periodically in a year. TDS is levied on interest payments by the banks, rent payments, consultation fees, salaries, commission payments and professional fees.
Based on the nature of taxable income, NRIs must pay TDS within a 10% to 30% range. NRIs are often subject to more stringent tax rules than the residents. To transact in India, they are required to have a valid PAN, which refers to a 10-character alphanumeric number allocated by the taxation department to taxpayers.
TDS Rates for NRIs
30% for interest earned on non-resident ordinary (NRO) accounts and deposits. 10% for long-term capital gains (LTCGs) on equities. 15% for short-term capital gains (STCGs) on equities. 30% for STCGs from debt (non-equity) mutual funds.
What is Section 194IA of The IT Act? e) Section 194IA prescribes that a buyer of immovable property that costs more than Rs. 50 lakhs is required to deduct TDS on property while paying the seller. The rate of TDS on property for this deduction is 1%.