TDS and TCS thresholds raised from FY 2025-26; higher TDS now only for non-PAN cases

The Union Budget 2025-26 rationalised TDS and TCS. The deduction limit on interest for senior citizens was doubled from Rs 50,000 to Rs 1 lakh; the annual TDS threshold on rent was raised from Rs 2.40 lakh to Rs 6 lakh; and the TCS threshold on remittances under the RBI Liberalised Remittance Scheme was raised from Rs 7 lakh to Rs 10 lakh. Higher-rate TDS now applies only in non-PAN cases, no TCS is collected on sale of specified goods above Rs 50 lakh, and delay in paying TCS up to the due date of filing the statement was decriminalised.

These are the Budget proposals as announced; they were enacted through the Finance Act, 2025. The effectiveDate of 1 April 2025 is the start of the financial year to which the Budget applies - check the specific section for any provision with a different commencement.

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