The Finance Bill 2025 introduced key amendments to the TDS/TCS framework aimed at simplifying compliance and boosting ease of doing business. Notably, the TDS rate under Section 194LBC for income payable by a securitisation trust is reduced from 25%/30% to 10%. Additionally, the bill raises the threshold limits for TDS applicability across various sections—covering areas such as interest on securities, dividend payments, and professional fees—thereby easing the tax burden on individuals and businesses.
The Finance Minister, Smt. Nirmala Sitharaman presented the Union Budget 2025 in parliament today, i.e., February 01, 2025. The finance minister has also tabled the Finance Bill 2025, which has proposed various amendments to the tax and corporate laws.
To enhance the ease of doing business and promote better taxpayer compliance, the Finance Bill 2025 has proposed rationalising a few TDS/TCS rates and raising the threshold for TDS applicability.
The TDS rate under Section 194LBC on income payable by a securitisation trust is proposed to be reduced from 25%/30% to 10%, as the sector is well-regulated.
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Changes in the threshold limit under various sections have been given below:
| S. No. | Section | Nature of Income | Current Threshold | Proposed Threshold |
| 1. | 193 | Interest on Securities | Nil | Rs. 10,000 |
| Interest payable to resident individual/HUF on any debenture issued by a public company | Rs. 5,000 | Rs. 10,000 | ||
| 2. | 194 | Dividend | Rs. 5,000 | Rs. 10,000 |
| 3. | 194A
| Interest other than interest on Securities |
|
|
| 4. | 194B | Winning from Lotteries, Crossword Puzzles, gambling, betting, etc. (except online games | Aggregate of amounts exceeding Rs. 10,000 during the financial year | Rs. 10,000 in respect of a single transaction |
| 5. | 194BB
| Winnings from horse race | ||
| 6. | 194D | Insurance Commission | Rs. 15,000 | Rs. 20,000 |
| 7. | 194G | Commission and other payments on the sale of lottery tickets | Rs. 15,000 | Rs. 20,000 |
| 8. | 194H | Commission and Brokerage | Rs. 15,000 | Rs. 20,000 |
| 9. | 194-I | Rent | Rs. 2,40,000 during the financial year | Rs. 50,000 per month or part of a month |
| 10. | 194J | Royalty and Fees for Professional or Technical Services | Rs. 30,000 | Rs. 50,000 |
| 11. | 194K | Income in respect of units of mutual fund | Rs. 5,000 | Rs. 10,000 |
| 12. | 194LA | Compensation on account of compulsory acquisition of an immovable property (other than agricultural land) | Rs. 2,50,000 | 5,00,000 |
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