The Modi government has made many major changes regarding TDS (tax deduction at source) in the General Budget 2025, which is very important to understand carefully. The government has increased the limit of annual income from rental property from 2.5 lakhs to 6 lakhs, but it is worth noting that a monthly limit of ₹ 50,000 has also been imposed on it.

At the same time, the Finance Minister has also made other changes in the TDS limit, which will benefit insurance agents, people investing in the stock market, people running brokerage firms, and providing technical services. So, if you also fall into these categories, then this news is very important for you. Know the new rules of TDS and how they will affect you.

No TDS on the new rental income upto ₹ 6 lakh annually

CA Vineet Rathi says that people are making some mistakes in understanding the process of deducting TDS on rental income. People think that if they get ₹6 lakh as rent annually, then TDS will not be deducted on them. In a way, this is correct, but if the payment is more than ₹50,000 in a month, then TDS will have to be deducted. So, it is very important to understand the monthly and annual limits.

Understand the complicated math of TDS on rent.

In such a situation, people will say that if ₹50,000 is received every month, then this amount will be ₹6 lakh in a year. But this needs to be understood technically. Some properties are not used to rented out for the full whole year. Now, if you rent out any of your properties for eight to ten months, and the rent is fixed at ₹6 lakh.

If the rent of ₹6 lakh fixed for 10 months is divided into 10 installments, then the property owner will get ₹60,000 rent every month. In such a case, TDS will be deducted if the monthly rent is more than ₹50,000. Therefore, it is important to keep in mind the monthly limit while paying rent. This rule is important for those who rent out their property for only a few months of the year.

Other important decisions taken under TDS

The Finance Minister has made some more important changes in the TDS limit in the Budget 2025, which will directly benefit people from many different sectors:

The TDS limit for interest on securities has been increased to ₹10,000.

The TDS limit on amounts exceeding ₹5,000 from mutual funds and company shares has been increased to ₹10,000.

The TDS limit on commission for insurance agents has been increased from ₹15,000 to ₹20,000.

The limit of brokerage commission has been increased from ₹15,000 to ₹20,000.
The limit of the amount received for technical service has been increased from ₹30,000 to ₹50,000.