TDS and TCS provisions applicable from April 1, 2025
Summary of the TDS and TCS provisions applicable from April 1, 2025:
TDS Provisions Effective April 1, 2025
| Section | Description | Threshold Limit (₹) | TDS Rate (%) |
|---|---|---|---|
| 193 | Interest on securities | 10,000 | 10% |
| 194 | Dividend | 10,000 | 10% |
| 194A | Interest (Senior Citizens) | 1,00,000 | 10% |
| 194A | Interest (Others than Senior) | 50,000 | 10% |
| 194A | Interest (Other Cases) | 10,000 | 10% |
| 194B | Lottery Winnings | 10,000 per transaction | 30% |
| 194BB | Horse Race Winnings | 10,000 per transaction | 30% |
| 194D | Insurance Commission | 20,000 | 5% (Individuals), 10% (Companies) |
| 194G | Commission on Lottery Ticket Sales | 20,000 | 2% |
| 194H | Commission or Brokerage | 20,000 | 5% |
| 194I | Rent (Plant & Machinery) | 50,000 per month | 2% |
| 194I | Rent (Other Properties) | 50,000 per month | 10% |
| 194J | Professional/Technical Services Fees | 50,000 | 10% |
| 194K | Income from mutual fund units | 10,000 | 10% |
| 194LA | Compensation for Property Acquisition | 5,00,000 | 10% |
| 194LBC | Income from Securitization Trusts | 5,000 | 10% (for all) |
TCS Provisions Effective April 1, 2025
| Section | Collection Type | Threshold (₹) | TDS Rate (%) |
|---|---|---|---|
| 206C(1G) | Remittance under LRS | 10,00,000 | 5% |
| 206C(1G) | Remittance for Education Loan under LRS | Exempted | Nil |
| 206C(1) | Sale of Timber (Forest Lease) | Not specified | 2% |
| 206C(1) | Sale of Timber (Other Methods) | Not specified | 2% |
| 206C(1) | Sale of Other Forest Produce | Not specified | 2% |
Important Additional Notes
• The requirement for TCS on the sale of goods exceeding ₹50 lakhs (Section 206C(1H)) has been removed to reduce compliance burdens.
• Section 194Q, which mandates TDS for buyers with turnover above ₹10 crores on purchases exceeding ₹50 lakhs, remains in effect.
Also Read: Rationalizing TDS: A Deep Dive into Budget 2025’s Proposals
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