India, Feb. 1 -- Union finance minister Nirmala Sitharaman in her Budget 2025 speech on Saturday proposed to rationalise tax deduction at source (TDS) by reducing the number of rates and thresholds above which TDS is deducted. In her 8th consecutive budget speech, Nirmala Sitharaman said that the threshold amounts for tax deduction will be increased for better clarity and uniformity.

She announced that the threshold for tax deduction on interest for senior citizens is being doubled from the present Rs.50,000 to Rs.1 lakh.

Similarly, the annual limit of Rs.2.40 lakh for TDS on rent has been increased to Rs.6 lakh. She added that this will reduce the number of transactions liable for TDS, thus benefitting small tax payers receiving small ...