New Tax Rule: With the start of the new financial year on April 1, 2025, many rules will change. These include changes in TDS rules, which were announced by Finance Minister Nirmala Sitharaman while presenting the Union Budget. Its purpose is to simplify tax compliance as well as provide relief to taxpayers. These reforms will not only reduce the tax amount but will also increase disposable income. Let's take a look at the changes going to be made in the TDS rules from April 1.

Senior citizens will get relief

In Budget 2025, the government has given exemption in TDS limit on interest income to senior citizens as well as the middle class of the country. Under this, from April 1, 2025, TDS will be deducted on FD, RD and other deposit schemes only when the total interest income in a financial year exceeds Rs 1 lakh. TDS deduction will be on the extra amount if the interest income exceeds Rs 1 lakh. This is a matter of relief for senior citizens because a major source of their income after retirement is the interest received on bank deposits.

TDS limit increased for regular taxpayers

The government has increased the limit of TDS deduction for the general citizens of the country from Rs 40,000 to Rs 50,000. That is, no TDS will be deducted on interest income up to Rs 50,000 annually on FD.

New rule for gaming

The government has also changed the TDS rules on income from gaming like lottery, crossword puzzle and horse racing. Now TDS will be deducted even if the winning amount is more than Rs 10,000. Under this new rule, even if a person wins Rs 8,000 three times, TDS will not be deducted on the total winning amount of Rs 24,000 because each time the winning amount is less than Rs 10,000. Whereas earlier tax was deducted on this entire Rs 24,000.

Relief to mutual fund and stock market investors

The dividend and income exemption limit for those investing in mutual funds and stock market has been increased from Rs 5,000 to Rs 10,000. This benefited the investors.

Benefit on insurance and brokerage commission

The government has also given relief to commission agents under the new rules. The limit of TDS deduction for insurance agents has been increased from Rs 15,000 to Rs 20,000. This will reduce the tax liability of small insurance agents and commission earners.