The Budget 2025 has revised threshold limits for TDS, ensuring that smaller transactions remain exempt from tax deduction, thereby reducing the compliance burden. These revised limits, effective from April 1, 2025, apply to various sections of the Income Tax Act, 1961.
| Section | Before April 1, 2025 | From April 1, 2025 |
| 193 - Interest on Securities | NIL | ₹10,000 |
| 194A - Interest other than interest on securities | (i) ₹50,000 for senior citizens (ii) ₹40,000 for others (banks, co-op societies, post offices) (iii) ₹5,000 in other cases | (i) ₹1,00,000 for senior citizens (ii) ₹50,000 for others (banks, co-op societies, post offices) (iii) ₹10,000 in other cases |
| 194 - Dividend for an individual shareholder | ₹5,000 | ₹10,000 |
| 194K - Income from mutual fund units | ₹5,000 | ₹10,000 |
| 194B - Lottery, crossword puzzle winnings | Aggregate exceeding ₹10,000 in a financial year | ₹10,000 per transaction |
| 194BB - Winnings from a horse race | Aggregate exceeding ₹10,000 in a financial year | ₹10,000 per transaction |
| 194D - Insurance commission | ₹15,000 | ₹20,000 |
| 194G - Commission, prize, etc. on lottery tickets | ₹15,000 | ₹20,000 |
| 194H - Commission or brokerage | ₹15,000 | ₹20,000 |
| 194-I - Rent | ₹2,40,000 per financial year | ₹50,000 per month |
| 194J - Professional/technical fees | ₹30,000 | ₹50,000 |
| 194LA - Enhanced compensation income | ₹2,50,000 | ₹5,00,000 |