TDS threshold changes effective April 1, 2025, bring relief to Indian taxpayers. The Central Board of Direct Taxes (CBDT) raised limits across sections. First, let’s explore how these updates affect your savings. With higher thresholds, you keep more money in hand.
Higher Limits on Interest Income
TDS threshold changes target interest earnings. For instance, Section 194A now starts at ₹10,000 for senior citizens, up from ₹5,000. General citizens see it rise from ₹5,000 to ₹10,000 too. So, if your bank FD earns ₹9,000 yearly, no TDS applies. This means more cash for you.
Boost for Small Investors
These changes also help small investors. Section 194H (commission) jumps from ₹15,000 to ₹20,000. Meanwhile, Section 194J (professional fees) rises from ₹30,000 to ₹50,000. For example, a freelancer earning ₹40,000 yearly avoids TDS now. Thus, these updates ease the burden on gig workers.
Impact on Other Payments
Other TDS threshold changes cover diverse payments. Section 194B (lottery winnings) doubles from ₹5,000 to ₹10,000. Section 194I (rent) now starts at ₹5 lakh monthly, up from ₹2.4 lakh. Besides, Section 194O (e-commerce) moves from ₹5 lakh to ₹10 lakh. Curious about tax planning? See “Saving vs Investing: Where should you put your money?” on Artho Shots. These shifts mean fewer deductions for many.
Why It Matters in 2025
India added 1.5 crore taxpayers in 2024 (NSE). TDS threshold changes help them save more. Higher limits reduce tax deductions at source. Then, you invest or spend that extra cash. For details, visit CBDT Updates. Therefore, these changes boost your financial freedom.
In conclusion, TDS threshold changes in 2025 ease tax pressures in India. They let you keep more from interest, commissions, and rent. Plus, they support small earners. Start planning now to maximize benefits. Ready for more? Explore our tax-saving tips today!