The government has announced major changes to TDS (Tax Deducted at Source) rules, effective April 1, 2025. These changes, introduced in Union Budget 2025, aim to reduce the tax burden on common citizens, especially senior citizens and FD investors.
🔹 Key TDS Rule Changes from April 1
✅ Higher TDS Limit for Senior Citizens
➡ New Limit: ₹1 lakh (previously ₹50,000)
➡ No TDS deduction if total interest income (from FD, RD, and savings accounts) is below ₹1 lakh in a financial year.
✅ Higher TDS Limit for Common Citizens
➡ New Limit: ₹50,000 (previously ₹40,000)
âž¡ If interest income remains within this limit, no TDS will be deducted.
✅ TDS on Lottery Winnings Simplified
➡ Earlier, TDS was deducted on total yearly winnings above ₹10,000.
➡ Now, TDS will apply only on individual winnings above ₹10,000 per transaction.
✅ TDS Limit Increased on Insurance Commission
➡ New Limit: ₹20,000 (previously ₹15,000)
âž¡ Beneficial for insurance agents, brokers, and advisors.
✅ Higher Exemption Limit for Mutual Funds & Shares
➡ New Dividend TDS Threshold: ₹10,000 (previously ₹5,000)
➡ Investors earning below ₹10,000 in dividend income won’t face TDS deductions.
📌 Why These Changes Matter?
✅ More Savings for Investors & Senior Citizens
✅ Less Frequent TDS Deductions
✅ Simplified Taxation on Lotteries & Insurance
This move will benefit millions of taxpayers who earn income through fixed deposits, mutual funds, dividends, and insurance commissions. Planning your finances just got easier! 📊💰
Are you happy with these new tax changes? Let us know in the comments!
