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 >>
- Registration u/s 12AB granted as activities fall under general public utility, if not education as claimed
- How a loan amount was utilised wouldn’t constitute failure to discharge onus u/s 68
- No addition based on third party information in form of unsigned excel sheet – ITAT
- Shagun money received on occasion of marriage not taxable income – ITAT
- There is no statutory requirement to maintain cash book for salaried individual – ITAT
