The central government has made changes in the TDS rules, which will come into effect from April 1, 2025. Senior citizens, small investors and professionals will get relief. The minimum limit of TDS on interest, dividend, rent etc. has been increased, so that those earning up to a certain limit will not have to pay TDS.
The central government has changed the rules of TDS. The new rules have come into effect from April 1, 2025. In these, different categories of investors have been given relief in tax deduction. According to a report by ET, the minimum limit of TDS on interest income, dividend and rent etc. has been increased.
This means that people earning up to a certain limit through these means will not have to pay TDS. This is expected to provide relief to professionals working on commission, small investors and senior citizens. Let us see how much relief has been given on TDS for different people.
For senior citizens
The government has given relief to senior citizens by making the TDS on interest on FD and RD zero up to a certain limit. Now if someone gets a total interest of Rs 1 lakh in a financial year from these two investment options, then he will not have to pay any TDS.
For common citizens
Earlier common citizens had to pay TDS on annual income of up to Rs 40,000 from interest, but now its limit has been increased to Rs 50,000. It is worth noting that this interest may be from all bank accounts combined or from just one, but the limit will be only Rs 50,000.
Mutual Funds and Stocks
Earlier if an investor earned Rs 5000 a year from dividend or mutual fund, his TDS was deducted but now this limit has been increased to Rs 10,000.
Insurance and Brokerage Commission
The minimum limit of TDS deduction on commission received from insurance has been increased from Rs 15,000 to Rs 20,000. Similarly, the minimum limit of TDS on income from other commissions has been increased to Rs 20,000. That is, now income up to Rs 20,000 in a year will be TDS free.
