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  5. Budget 2025: New TDS limits for senior citizens, rent, brokerage & more – Full list

Personal Finance News

Budget 2025: New TDS limits for senior citizens, rent, brokerage & more – Full list

Upstox
By Upstox News Desk

3 min read | Updated on February 02, 2025, 10:08 IST

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SUMMARY

The government has announced major changes to the TDS (Tax Deducted at Source) framework in Budget 2025-26, increasing exemption thresholds across multiple categories to simplify compliance and benefit taxpayers

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The annual limit for TDS on rent payments has been raised from ₹2.40 lakh to ₹6 lakh in the financial year. Image: Shutterstock

Finance Minister Nirmala Sitharaman on Saturday proposed major changes to the Tax Deduction at Source (TDS) framework, increasing threshold limits across multiple categories to simplify compliance and ease financial burdens on taxpayers, particularly senior citizens and small taxpayers.

Announcing the changes in her Budget 2025 speech, Sitharaman said the number of TDS rates and thresholds would be rationalised to provide better clarity and uniformity.

One of the key relief measures is the increase in the TDS exemption limit on interest income on fixed deposits for senior citizens from ₹50,000 to ₹1 lakh.

The annual limit for TDS on rent payments has been raised from ₹2.40 lakh to ₹6 lakh in the financial year.

"This will reduce the number of transactions liable to TDS, thus benefitting small tax payers receiving small payments," Sitharaman said.

The exemption limit for interest on securities, which previously had no threshold, has been set at ₹10,000.

The limit for TDS deduction on dividends for individual shareholders has been doubled from ₹5,000 to ₹10,000.

The limit for brokerage and commission has been raised from ₹15,000 to ₹20,000, while the TDS threshold for professional or technical services has been hiked from ₹30,000 to ₹50,000.

For overseas remittances under the Liberalized Remittance Scheme (LRS) and overseas tour packages, the threshold for TCS (Tax Collected at Source) has been increased from ₹7 lakh to ₹10 lakh.

Full List of TDS/TCS rationalisation:

Section of the ActPresent TDS/TCS Threshold (₹)Proposed TDS/TCS Threshold (₹)
193 - Interest on securitiesNil10,000/-
194A - Interest other than Interest on securities(i) 50,000/- for senior citizen; (ii) 40,000/- in case of others when payer is bank, cooperative society and post office; (iii) 5,000/- in other cases(i) 1,00,000/- for senior citizen; (ii) 50,000/- in case of others when payer is bank, cooperative society and post office; (iii) 10,000/- in other cases
194 – Dividend, for an individual shareholder5,000/-10,000/-
194K - Income in respect of units of a mutual fund or specified company or undertaking5,000/-10,000/-
194B - Winnings from lottery, crossword puzzle etc.Aggregate of amounts exceeding 10,000/- during the financial year10,000/- in respect of a single transaction
194BB - Winnings from horse race--
194D - Insurance commission15,000/-20,000/-
194G - Income by way of commission, prize etc. on lottery tickets15,000/-20,000/-
194H - Commission or brokerage15,000/-20,000/-
194-I Rent2,40,000/- during the financial year50,000/- per month or part of a month
194J - Fee for professional or technical services30,000/-50,000/-
194LA - Income by way of enhanced compensation2,50,000/-5,00,000/-
206C(1G) – Remittance under LRS and overseas tour program package7,00,000/-10,00,000/-
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About The Author

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Upstox News Desk is a team of journalists who passionately cover stock markets, economy, commodities, latest business trends, and personal finance.

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