Changes in Threshold Limits in TDS - Union Budget 2025
Under the Union Budget 2025, TDS threshold limits have been revised to enhance clarity, uniformity, and compliance efficiency.
Let's review the table below for a detailed breakdown:-
TDS Table
| Section | Current Rule (Before April 1, 2025) | Proposed Rule (From April 1, 2025) |
|---|---|---|
| Section 193 - Interest on securities | ₹5,000/- | ₹10,000/- |
| TDS Rate | 10% | 10% |
| Section 194 Dividend, for an individual shareholder | ₹5,000/- | ₹10,000/- |
| TDS Rate | 10% | 10% |
| Section 194B - Winnings from lottery, crossword puzzle etc. | Aggregate of amounts exceeding ₹10,000/- during the financial year | ₹10,000/- in respect of a single transaction |
| TDS rate | 30%* | 30%* |
| Section 194BB - Winnings from horse race | Aggregate of amounts exceeding ₹10,000/- during the financial year | ₹10,000/- in respect of a single transaction |
| TDS rate | 30%* | 30%* |
| Section 194D - Insurance commission | ₹15,000/- | ₹20,000/- |
| TDS rate | 10% if the recipient is domestic company and 2% W.E.F. 1.04.2025 (5% until March 31,2025) in other cases. | 10% if the recipient is domestic company and 2% W.E.F. 1.04.2025 (5% until March 31,2025) in other cases. |
| Section 194G - Income by way of commission on sale of lottery tickets | ₹15,000/- | ₹20,000/- |
| TDS rate | 2% | 2% |
| Section 194H - Commission or brokerage | ₹15,000/- | ₹20,000/- |
| TDS rate | 2% | 2% |
| Section 194-I TDS on Rent | ₹2,40,000/- p.a. | ₹50,000/- p.m. |
| TDS rate | 2% in respect of rent of plant and machinery or equipment and 10% in respect of other rental payments. | 2% in respect of rent of plant and machinery or equipment and 10% in respect of other rental payments. |
| Section 194J Professional Fee, Technical Fee, Royalty or remuneration etc. to a director | ₹30,000/- | ₹50,000/- |
| TDS rate | 2% in respect of Technical services and 10% in respect of other services | 2% in respect of Technical services and 10% in respect of other services |
| Section 194K – Income in respect of units. | ₹5,000/- | ₹10,000/- |
| TDS rate | 10% | 10% |
| Section 194LA - Income by way of enhanced compensation | ₹2,50,000/- | ₹5,00,000/- |
| TDS rate | 10% | 10% |
* u/s 194-B and 194-BB if the recipient is a resident, the tax rate will be 30% without a surcharge plus health and education cess, if the recipient is a non-resident, the tax rate will be 30% with a surcharge plus health and education cess.
Disclaimer: This article is based on the information available as of February 1, 2025. The content reflects the author's interpretations of provisions of the Income Tax Act, 1961 and the latest financial budget 2025. While every effort has been made to ensure the accuracy of the information, the author does not guarantee its completeness or reliability. Readers are advised to consult with a professional tax advisor for specific advice tailored to their individual circumstances.