New TDS Rules: Finance Minister Nirmala Sitharaman's Union Budget 2025 Presentation Included Significant Modifications to TDS (Tax deducted at source) regulations, offering financial benefits to Various benefits to Various benefits to Various Categories, Including Senior Citizens, Investors and Commission Earners. These changes in tds rules will take effect from April 1, 2025.
New TDS Limits for Senior Citizens
The Union Budget 2025 Aimed to Increase Disposable Income for Middle-Class and Senior Citizens. Starting April 1, 2025 Interest Earnings From FDS, RDS and Similar Instruments will face deductions only when the cumulative Amount in a bank surpasses RS 1 Lakh DURING A Financial Year, ACORDINCIAL Year, ACORDING to An Ent Report. Senior Citizens MainTaining Interest Earnings Below Rs 1 Lakh will be exhempt from bank tds deductions.
Revised TDS Thresholds for Regular Citizens
For Regular Citizens, The Government has raised the TDS Threshold on Interest Income to Rs 50,000 from Rs 40,000, Beginning April 2025. Individuals Dependent on FD Interest for Primary Income.
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Under the new regulations, banks will implement tds when yearly interest totals exced Rs 50,000. Regular Citizens Keeping Interest Earnings Within Rs 50,000 will avoid tds deductions.
TDS Rules Simplified for Gaming Winnings
The government has streamlined tds regulations for lottery winnings, crossword puzzles, and house racing by eliminating the Yearly Aggregate Threshold of Rs 10,000. The new regulation specifies that tds applies only ben a Single Winning Exceds RS 10,000, Replacing the Previous System Where Tax Was Was WHEN Cumulative Winnings Surpassed RS RS 10,000 Annual.
For instance: if someone wins Rs 8,000 three times, totalling Rs 24,000, no tds will apply under the new rule, as Each individual win is beLow Rs 10,000. Previously, TDS would have been applicable on the total amount, say the et report.
Insurance and Brokerage Commission Updates
The Budget 2025 Introduced Higher TDS Thresholds for Commission EarningsInsurance agents will benefit from an increase TDS Threshold of Rs 20,000, UP from Rs 15,000, Effective April 1, 2025. These adjustments are intended to reduce compliance requirements and IMPOVEVE CASHE Flow for smaller earners.
Also read | National Savings Certificate vs Bank Fixed Deposits: Tax Benefits, Interest Calculation & TDS Compared
Investment Income Changes
For Investors in Mutual Funds and Stocks, The Dividend and Income Examption Limit has been increased to Rs 10,000 from Rs 5,000.
Dividend tax modifications
From April 1, 2025, Investors will Enjoy a Higher Dividend Tax Deduction Threshold of Rs 10,000, Increased From Rs 5,000. This change benefits equity and mutual fund investors, as tds will only apply when Dividend Earnings Exced Rs 10,000.
(Tagstotranslate) TDS Thresholds for Commission for Commissions (T) TDS exemptions for Senior Citizens (T) Tax Deduted at source Changes (T) New TDS Rules 2025 (T) 2025 (T) New TDS Rules (T) New TDS Rules (T) Gaming Winnings TDS Rules (T) Dividend Tax Deduction Changes
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