The Union Budget 2025, presented by Smt. Nirmala Sitharaman, has introduced significant changes in the Threshold Limits under Various TDS & TCS Sections. These amendments aim to streamline tax compliance and reduce the burden on taxpayers.
In this blog, we provide a detailed comparison of the existing limits vs. the proposed new limits for different TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) sections.
📌 Key Highlights:
✔️ Sections impacted by the revised threshold limits
✔️ Comparative table of old vs. new limits
✔️ Impact analysis on businesses and individuals
✔️ Compliance & planning tips for FY 2025-26
| TDS/TCS Update – Budget 2025 | |||||
| Section | Particular | Existing Limit | Proposed Limit | ||
| 193 | Interest on securities | Nil | ₹10,000 | ||
| 194A | Interest other than Interest on securities | Senior Citizen: ₹50,000 | Senior Citizen:₹1,00,000 | ||
| [Bank, Co-operative society, Post office] | Others: ₹40,000 | Others:₹50,000 | |||
| 194 | Dividend (Ind.) | ₹5,000 | ₹10,000 | ||
| 194K | Income from Units | ₹5,000 | ₹10,000 | ||
| 194B /194BB | 194B – Lottery, etc 194BB – Horse race | Aggregate > ₹10,000 during FY | Aggregate > ₹10,000 in a single transaction | ||
| 194D | Insurance Commission | ₹15,000 | ₹20,000 | ||
| 194G | Commission on lottery | ₹15,000 | ₹20,000 | ||
| 194H | Commission/Brokerage | ₹15,000 | ₹20,000 | ||
| 194I | Rent | ₹2,40,000 during FY | ₹50,000 p.m | ||
| 194J | Professional/Technical fees | ₹30,000 | ₹50,000 | ||
| 194LA | Enhanced Compensation | ₹2,50,000 | ₹5,00,000 | ||
| 206C(1G) | Remittance under LRS & Overseas tour program package | ₹7,00,000 | ₹10,00,000 | ||
Stay informed and ensure your tax planning aligns with the latest amendments! 📊💰