Major TDS & TCS Changes Effective April 1, 2025: What You Need to Know
The new financial year brings significant updates to India's TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) framework. Effective April 1, 2025, the Ministry of Finance has revised several threshold limits and omitted certain provisions to streamline tax compliance and reduce administrative burden.
🔍 Key Changes at a Glance
Many threshold limits for deducting TDS have been increased—particularly for dividends, interest on securities, and professional fees. These changes are aimed at easing tax compliance for small taxpayers and reducing unnecessary deductions on low-value transactions.
Below is a detailed breakdown of the changes:
📊 TDS Threshold Changes – Effective April 1, 2025
🧾 TCS / Other Provisions – Rate Revisions or Omission
âś… Summary of Implications
- Higher thresholds mean fewer TDS deductions for small transactions.
- Senior citizens benefit from significantly increased exemption limits on interest income.
- NRIs purchasing immovable property in India will now face a lower TDS deduction of 12.5%, down from 20%.
- Several TCS provisions have been omitted, including those on the sale of goods and educational loan remittances.
These changes are a welcome relief to taxpayers and are expected to enhance compliance by reducing friction in routine transactions.
About the Author
Srinivas Maddipati
Srinivas Maddipati is a registered Patent Agent, legal strategist, and the Managing Director of Eeva IP & IT Services Pvt. Ltd. With vast experience in intellectual property, innovation law, and regulatory compliance, he regularly advises startups, businesses, and institutions on legal and strategic matters. Srinivas actively engages in public policy discussions and IP awareness initiatives across India.
