TDS thresholds for interest, rent, and commissions are enhanced from April 2025

As per the Finance Bill 2025, effective from April 1, 2025, the government has enhanced the Tax Deducted at Source (TDS) thresholds for various income categories, including interest, rent, and commissions. Below are the key changes:

Interest Income (Section 194A)

1. For Senior Citizens (aged 60 years or above):
   
2. Bank/Post Office/Cooperative Society: TDS applicable if interest exceeds ₹1,00,000 per annum (previously ₹50,000).
3. Other Payers: TDS applicable if interest exceeds ₹1,00,000 per annum (previously ₹50,000). 
   

For Others:

1. Bank/Post Office/Cooperative Society: TDS applicable if interest exceeds ₹50,000 per annum (previously ₹40,000).
2. Other Payers: TDS applicable if interest exceeds ₹10,000 per annum (previously ₹5,000).  
3. Rent Income (Section 194I)
   
4. Threshold: TDS applicable if rent exceeds ₹50,000 per month or part of a month (previously ₹2,40,000 per annum).  

Commission and Professional Fees (Section 194H & 194J)

1. Commission or Brokerage (Section 194H):
   
2. Threshold: TDS applicable if commission or brokerage exceeds ₹20,000 per annum (previously ₹15,000). 
   
3. Professional or Technical Services (Section 194J):
   
4. Threshold: TDS applicable if fees for professional or technical services exceed ₹50,000 per annum (previously ₹30,000).  

These enhancements aim to reduce the compliance burden for taxpayers and align the TDS provisions with current economic realities.