TDS will not be deducted on income up to 10 thousand

Till now, it was mandatory for companies to deduct TDS at the rate of 10% on dividends above Rs 5,000. But under the new provision, there will be no TDS on dividends up to Rs 10,000. If the investor has provided PAN, then 10% TDS will be deducted on dividends above the new limit, but if PAN is not provided, TDS will be deducted at a higher rate of 20%. The government believes that this decision will directly benefit small investors and mutual fund unit holders. Apart from this, the process of tax payment will also be simplified.

Changes in TDS and TCS rates bring relief to taxpayers

In the budget presented for the financial year 2025-26, not only dividend income but many other rules related to TDS and TCS have also been changed and made easier.

• In fact, under section 194A, the limit of TDS on interest received on bank deposits of senior citizens has been increased from Rs 50,000 to Rs 1 lakh.
• At the same time, the limit of TDS on rent under section 194I has been increased from Rs 2.40 lakh per annum to Rs 6 lakh without any condition.
• The TCS limit on sending money abroad under the Liberalised Remittance Scheme (LRS) of the Reserve Bank of India has been increased from Rs 7 lakh to Rs 10 lakh.
• If money is sent abroad by taking a loan from the bank for studies, then TCS will not be levied on it.

Government will present new income tax bill next week

The government says that these changes in the rules of TDS and TCS have been made to simplify the tax system and help small investors. This will give investors tax relief on dividend, rent and interest, which will reduce their tax liability and increase investment. It is worth noting that after the budget, everyone’s eyes will now be on the new Income Tax Bill, which the government is going to present in the Parliament next week.

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The post TDS limit doubled on these earnings including dividends, know complete details first appeared on Rightsofemployees.com.

In the budget presented on February 1 , Finance Minister Nirmala Sitharaman announced major changes in the tax deduction at source (TDS) rules. The new TDS rule will come into effect from April 1. After the new rules come into force, investors making fixed deposits (FD) and recurring deposits (RD) will get a big relief.

In fact, giving relief to senior citizens, the limit of TDS deduction on income from FD has been doubled. Relief has also been given to common citizens. From April 1, TDS deduction on interest income from fixed deposits (FD), recurring deposits (RD), etc. for senior citizens will be done only when the interest income exceeds Rs 1 lakh in a financial year. This means that if the interest income of a senior citizen is less than Rs 1 lakh, then he will not have to pay TDS.

Relief to common people too

For non-senior citizens (common citizens), the government has increased the TDS limit for interest income from Rs 40,000 to Rs 50,000 effective from April 2025. The move is aimed at reducing the tax burden on depositors, especially those who depend on FD interest as a primary source of income. As per the revised rules, the bank will deduct TDS if the total annual interest amount exceeds Rs 50,000. However, if a common citizen keeps his interest income within the limit of Rs 50,000, the bank will not deduct any TDS.

TDS on lotteries

The government has simplified TDS rules related to winnings from lotteries, crosswords and horse racing. Earlier, TDS was deducted when the total winnings in a year exceeded Rs 10,000. Now TDS will be deducted only when a single transaction exceeds Rs 10,000. Budget 2025 has also increased the TDS limit for various commissions, providing relief to insurance agents and brokers.

The TDS limit for insurance commission has been increased from Rs 15,000 to Rs 20,000, effective from April 1, 2025. For those investing in mutual funds (MFs) or stocks, the exemption limit on dividends and income earned from MF units or specific companies has been increased from Rs 5,000 to Rs 10,000.

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The post New TDS rule will be implemented from April 1, those investing in FD-RD will get big benefit first appeared on Rightsofemployees.com.

Recent budget announcements have made FDs more attractive. The government has increased the TDS limit for bank FDs. It has been increased from Rs 40,000 to Rs 50,000 for general individuals and from Rs 50,000 to Rs 1 lakh for senior citizens. Let us know about the major benefits of investing in FDs…

Huge uncertainty in the market

Stable options in volatile markets These days, there is a lot of uncertainty in the market due to global political tensions and fluctuations in interest rates. Short-term volatility is keeping investors worried amid the possibility of long-term gains.

The market is not happy even with the income tax exemption and the reduction in repo rate. In such times, FD has emerged as a strong support. With assured returns unaffected by fluctuations, it provides peace of mind to risk-averse investors. FD is a better option for people looking for regular income.

Tax benefits with safety: FDs offer a perfect combination of savings and tax efficiency. Tax savers can avail a deduction of up to Rs 1.5 lakh under Section 80C of the Income Tax Act through FDs, which have a lock-in period of five years.

Compared to other tax-saving instruments like ELSS (Equity Linked Se wing Schemes) and ULIPs (Unit Linked Insurance Plans), FDs are more attractive due to their simplicity and assured returns.

Overdraft facility: In emergency financial situations, FD provides an excellent solution to obtain the required funds while maintaining investments. Through the overdraft facility, banks provide a credit line by accepting the FD as a guarantee.

Customers can avail loans up to a certain percentage of the total amount of the FD. Interest is payable only on the amount utilised. Since the FD is guaranteed, banks usually offer loans at competitive interest rates.

Convenience: Along with security and returns, it is also a better option due to its simplicity and easy availability. Whether through a bank branch or online on a digital platform, opening an FD account is very simple. No special financial expertise is required to understand its terms and conditions. Features like auto-renewal, nomination and online tracking are also available with it, which make it a symbol of convenience as well as security.

Uttam Tebriwal, Deputy CEO, AU Small Finance Bank, says that while evaluating your investment options for tax planning this year, consider the long-term benefits of FDs. Whether your goal is to save for future expenses, avail tax benefits or just grow your savings steadily, FDs will continue to be a reliable companion in achieving your financial goals.

Smart investing not just means earning high returns but also ensuring peace of mind, and through FDs you can have both.

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The post TDS limit For FD: Government has increased the TDS limit for bank FDs. Key Details Inside first appeared on Rightsofemployees.com.

TDS will not be deducted on income up to 10 thousand

Till now, it was mandatory for companies to deduct TDS at the rate of 10% on dividends above Rs 5,000. But under the new provision, there will be no TDS on dividends up to Rs 10,000. If the investor has provided PAN, then 10% TDS will be deducted on dividends above the new limit, but if PAN is not provided, TDS will be deducted at a higher rate of 20%. The government believes that this decision will directly benefit small investors and mutual fund unit holders. Apart from this, the process of tax payment will also be simplified.

Changes in TDS and TCS rates bring relief to taxpayers

In the budget presented for the financial year 2025-26, not only dividend income but many other rules related to TDS and TCS have also been changed and made easier.

• In fact, under section 194A, the limit of TDS on interest received on bank deposits of senior citizens has been increased from Rs 50,000 to Rs 1 lakh.
• At the same time, the limit of TDS on rent under section 194I has been increased from Rs 2.40 lakh per annum to Rs 6 lakh without any condition.
• The TCS limit on sending money abroad under the Liberalised Remittance Scheme (LRS) of the Reserve Bank of India has been increased from Rs 7 lakh to Rs 10 lakh.
• If money is sent abroad by taking a loan from the bank for studies, then TCS will not be levied on it.

Government will present new income tax bill next week

The government says that these changes in the rules of TDS and TCS have been made to simplify the tax system and help small investors. This will give investors tax relief on dividend, rent and interest, which will reduce their tax liability and increase investment. It is worth noting that after the budget, everyone’s eyes will now be on the new Income Tax Bill, which the government is going to present in the Parliament next week.

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The post TDS limit is double on these earnings including dividend, know full details first appeared on Rightsofemployees.com.

In the General Budget 2025, the Modi government has made many changes on the TDS front, which is very important to understand closely. The government has increased the income limit earned from rented property from two and a half to six lakhs annually, but it is worth noting that a monthly limit of Rs 50 thousand has also been imposed in it. On the other hand, the Finance Minister has also made other changes in the TDS limit, which will benefit insurance agents, people investing in the stock market, those running brokerage firms and people providing technical services.

No TDS on rental income of Rs 6 lakh per annum

CA Vineet Rathi says that people are making some mistakes in understanding the system of deducting TDS on income earned from rent. People think that if they get six lakh rupees annually as income from rent, then TDS will not be deducted on it. In a way, this is correct, but if there is a payment of more than 50 thousand rupees in a month, then TDS will have to be deducted on it. In such a situation, people will say that if they get 50 thousand rupees per month, then only this amount will be six lakh rupees in a year.

This needs to be understood technically. Actually some properties are not taken for a year. Now if you rent out any of your properties for eight to ten months, the rent is fixed at Rs 6 lakh.

If the rent of Rs 6 lakh fixed for 10 months is divided into 10 installments, then the property owner will get a rent of Rs 60 thousand every month. In such a situation, TDS will be deducted if the monthly rent is above Rs 50 thousand. Therefore, it will be important to keep in mind the monthly limit while paying the rent.

Other decisions taken regarding TDS

• – TDS limit on interest on securities raised to Rs 10,000
• TDS exemption on dividend increased from Rs 5,000 to Rs 10,000
• – TDS limit on amount exceeding Rs 5,000 from mutual fund and company shareholding has been increased to Rs 10,000
• – TDS limit on commission for insurance agents increased from Rs 15,000 to Rs 20,000.
• – The limit of commission on brokerage was increased from Rs 15 thousand to Rs 20 thousand.
• – The limit on amount received from technical service was increased from Rs 30 thousand to Rs 50 thousand.

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The post TDS Limit Changed: Central government has made many changes in the TDS limit – Key Details inside first appeared on Rightsofemployees.com.

The limit of TDS on interest received on FD in the bank has been increased. Earlier, TDS was not deducted on income up to Rs 40,000 through interest from bank FDs. Now it has been increased to Rs 50,000. That is, now banks will not automatically deduct TDS on income less than Rs 50,000.

Banks will deduct TDS and inform the Income Tax Department only if the income from FD interest is more than 50 thousand. 10% TDS is deducted if the bank has a PAN card number. If the bank does not have a PAN card, then 20% TDS is deducted on the taxable income of FD interest. All persons below the age of 60 years will get its benefit. The announcements made in the budget will benefit the general public, the middle class and the elderly.

Will be implemented from April 1, 2025

The Government of India has increased the limit of TDS for people below 60 years of age on income from bank FDs, which will be implemented from April 1. The limit of exemption on TDS in bank FDs for senior citizens is different from all these. These are also announced separately by the banks from time to time. The announcements made in the budget will benefit the common people.

Initiative to put more cash in the hands of people

Other provisions of the budget and the increase in the limit of TDS on bank FDs have also made it clear that the government wants to reduce tax deductions from the middle class and put more and more cash in the hands of the people. Its aim is to increase consumption.

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The post Bank FD TDS Limit Hike : TDS limit on interest earned from bank FD increased from Rs 40,000 – Key Details first appeared on Rightsofemployees.com.