Changes of TDS Limits In Budget 2025

Finance Minister Nirmala Sitharaman’s Budget 2025 brings significant changes to TDS and TCS thresholds to simplify tax compliance and improve cash flow.

Rental income TDS threshold sees a substantial increase from ₹2.4 lakh to ₹6 lakh annually, benefiting landlords, especially in metropolitan areas under section 194I of Income Tax Act.

Senior citizens receive major relief with the TDS threshold on interest income doubled to ₹1 lakh from ₹50,000.

while the general threshold increases to ₹50,000 for bank interest and ₹10,000 for other cases.

Professional services see a higher TDS threshold of ₹50,000 (up from ₹30,000), benefiting freelancers and gig workers under section 194J of Income Tax Act.

Read Also : Extending the Time Limit to file the Updated Return in Budget 2025

Additional thresholds increased to ₹10,000 from ₹5,000 of dividend income and dividend Income from Mutual fund.

Changes of TCS Limits In Budget 2025

Remittance under LRS and overseas tour program package TCS limit is increased to ₹10 lakh from ₹7 lakh u/s 206C(1G).