TDS Rules From April 1: Today i.e. from 1st April 2025, the new financial year has started. Many rules have changed at the beginning of the month itself. In this episode, FD investors have got a big relief. In fact, in the budget for the financial year 2025-26, Finance Minister Nirmala Sitharaman announced that the limit of TDS on interest received on fixed deposits would be increased. The purpose of this change is to relieve small investors and senior citizens from the burden of tax deductions. This change is beneficial for the common people. With the increase in the TDS limit, people will have a little more money in their hands.

The government has increased the limit of TDS on interest income for common citizens from Rs 40,000 to Rs 50,000. The TDS deduction for senior citizens has been doubled. It was earlier Rs 50 thousand, which has now become Rs 1 lakh. If your interest income from FD is less than this new limit, then TDS will not be deducted.

What is TDS?

Tax Deducted at Source (TDS) is a tax collection system in which the government deducts tax directly from the source of income. TDS is applicable to many types of income, such as salary, interest on fixed deposits, rent, etc. This tax is deducted as per the prescribed rates.

What is TDS on Fixed Deposit?

TDS on Fixed Deposit is the tax that the bank deducts from the investor's interest and deposits it with the government. When the interest received on FD in the bank exceeds a certain limit, then the bank has to deduct TDS. This limit is different for senior citizens and non-senior citizens.

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