TDS threshold rationalization TDS provisions have various thresholds of amount of payment or amount of income, beyond which tax is required be deducted. It is proposed to rationalize these thresholds as below Union Budget 2025-26 (Full) + Finance Bill, 2025 - Finance Bill

Union Budget 2025-26 (Full) + Finance Bill, 2025 II. TDS threshold rationalization TDS provisions have various thresholds of amount of payment or amount of income, beyond which tax is required be deducted. It is proposed to rationalize these thresholds as below S. No Section Current threshold Proposed threshold 1. 193 - Interest on securities Nil Rs. 10,000/- 2. 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 3. 194 - Dividend for an individual shareholder Rs. 5,000/- Rs. 10,000/- 4. 194K - Income in respect of units of a mutual fund or specified company or undertaking Rs. 5,000/- Rs. 10,000/- 5. 194B - Winnings from lottery, crossword puzzle, etc. Aggregate of amounts exceeding Rs. 10,000/- during the financial year Rs. 10,000/- in respect of a single transaction 6. 194BB - Winnings from horse race 7. 194D - Insurance commission Rs. 15,000/- Rs. 20,000/- 8. 194G - Income by way of commission, prize etc. on lottery tickets Rs.15,000/- Rs. 20,000/- 9. 194H - Commission or brokerage Rs. 15,000/- Rs. 20,000/- 10. 194-I Rent Rs. 2,40,000/- during the financial year Rs. 50,000/- per month or part of a month 11. 194J - Fee for professional or technical services Rs. 30,000/- Rs. 50,000/- 12. 194LA - Income by way of enhanced compensation Rs. 2,50,000/- Rs. 5,00,000/- Full Text : Union Budget 2025-26 (Full) + Finance Bill, 2025