Here’s a consolidated table of the revised TDS threshold limits effective from April 1, 2025, based on the Finance Act 2025 amendments:
Key TDS Threshold Changes (FY 2025-26)
| SECTION | NATURE OF PAYMENT | OLD THRESHOLD (PRE-APRIL 2025) | NEW THRESHOLD (FROM APRIL 2025) | TDS RATE |
| 193 | Interest on Securities | Nil | ₹10,000 | 10% |
| 194A | Interest (other than securities) | ₹50,000 (senior citizens), ₹40,000 (others) | ₹1,00,000 (seniors), ₹50,000 (others) | 10% |
| 194 | Dividend to individual shareholders | ₹5,000 | ₹10,000 | 10% |
| 194B | Lottery/Crossword Puzzle Winnings | ₹10,000 (annual aggregate) | ₹10,000 per transaction | 30% |
| 194BB | Horse Race Winnings | ₹10,000 (annual aggregate) | ₹10,000 per transaction | 30% |
| 194D | Insurance Commission | ₹15,000 | ₹20,000 | 2% (Ind/HUF), 10% (Others) |
| 194G | Lottery Ticket Commission | ₹15,000 | ₹20,000 | 2% |
| 194H | Brokerage/Commission | ₹15,000 | ₹20,000 | 2% |
| 194I | Rent | ₹2,40,000 (annual) | ₹50,000 per month | 2% (machinery), 10% (land/building) |
| 194J | Professional/Technical Fees | ₹30,000 | ₹50,000 | 10% (general), 2% (call centers/tech services) |
| 194K | Mutual Fund Income (dividend) | ₹5,000 | ₹10,000 | 10% |
| 194LA | Compensation on Immovable Property | ₹2,50,000 | ₹5,00,000 | 10% |
| 194T | Partner’s Remuneration (new section) | – | ₹20,000 (annual) | 10% |
Key Highlights of Changes
- Senior Citizen Benefits:
- Interest income (Section 194A) threshold doubled to ₹1 lakhfor seniors.
- No TDS if interest from FDs/RDs stays below this limit.
- Rent Payments (Section 194I):
- Shift from annual(₹2.4L) to monthly threshold (₹50,000/month).
- Simplified Gaming/Winnings Tax:
- TDS on lottery/horse race winnings now applies per transaction(not annual aggregate).
- New Section 194T:
- 10% TDSon partner remuneration exceeding ₹20,000/year in firms/LLPs.
- Removed Provisions:
- Section 206AB(higher TDS for non-filers) scrapped, easing compliance.
