TDS sections for which payment threshold reduced by Budget 2025-26. See Table
The Finance Bill 2025 has increased payments threshold limits for deduction of tax at source under various sections
TDS provisions have various thresholds of amount of payment or amount of income, beyond which tax is required be deducted. It has been proposed to rationalize these thresholds as below:
Table of TDS sections for which payment threshold reduced by Budget 2025-26.
| Section | Current Threshold | Proposed Threshold |
| 193 – Interest on securities | Nil | Rs. 10000/- |
| 194A – Interest other than Interest on securities | (i) Rs. 50,000/- for senior citizen; (ii) Rs. 40,000/- in case of others when payer is bank, cooperative society and post office (iii) Rs. 5,000/- in other cases | (i) Rs. 1,00,000/- for senior citizen; (ii) Rs. 50,000/- in case of others when payer is bank, cooperative society and post office (iii) Rs. 10,000/- in other cases |
| 194 – Dividend for an individual shareholdes | Rs. 5000/- | Rs. 10000/- |
| 194K – Income in respect of units of a mutual fund or specified company or undertaking | Rs. 5,000/- | Rs. 10,000/- |
| 194B – Winnings from lottery, crossword puzzle, etc. | Aggregate of amounts exceeding of amounts Rs. 10,000/- during the financial year | Rs. 10,000/- in respect of a single transaction |
| 194BB – Winnings from horse race | ||
| 194D – Insurance Commission | Rs. 15,000/- | Rs. 20,000/- |
| 194G – Income by way of commission, prize etc. on lottery tickets | Rs. 15,000/- | Rs. 20,000/- |
| 194H – Commission or brokerage | Rs. 15,000/- | Rs. 20,000/- |
| 194I – Rent | Rs. 2,40,000/- during the financial year | Rs. 50,000/- per month or part of a month |
| 194J – Fee for professional or technical services | Rs. 30,000/- | Rs. 50,000/- |
| 194LA – Income by way of enhanced compensation | Rs. 2,50,000/- | Rs. 5,00,000/- |
This amendment will take effect from the 1st day of April 2025.
Download more details of TDS Rationlisation Click Here >>
- ITAT allows credit balance adjustment for addition of deemed dividend u/s 2(22)(e)
- Addition u/s 50C deleted based on FMV as per CA report under Rule 11UA(1)(b)
- Procedure to handle export cargo originating from SEZ due to closure of Strait of Hormuz
- ICAI AQMM review to be applicable to Practice Units which are subject to Peer Review
- ITAT allows remuneration paid by wives of CA partners for their services rendered in firm
