Updated 10:07 IST, February 2nd 2025
TDS Limit On Rent Increased To Rs 6 Lakh - What Does It Mean?
"Further, threshold amounts for tax deduction will be increased for better clarity and uniformity", she said.

The union budget was presented by Finance Minister Nirmala Sitharaman on February 1, 2025 at 11 am, in the Parliament of India. During the budget presentation, Sitharaman proposed changes in the tax regime, including changes in Tax Deduction at Source (TDS).
Budget 2025 : Changes In TDS
Sitharaman proposed to rationalize Tax Deduction at Source (TDS) by reducing the number of rates and thresholds above which TDS is deducted.
"Further, threshold amounts for tax deduction will be increased for better clarity and uniformity", she said.
The limit 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 is being increased to Rs 6 lakh.
"This will reduce the number of transactions liable to TDS, thus benefitting small tax payers receiving small payments", the minister added.
The threshold to collect tax at source (TCS) on remittances under RBI’s Liberalized Remittance Scheme (LRS) is proposed to be increased from Rs 7 lakh to Rs 10 lakh.
The minister also proposed to remove TCS on remittances for education purposes, where such remittance is out of a loan taken from a specified financial institution.
Both TDS and TCS are being applied on any transaction relating to sale of goods. To prevent such compliance difficulties, Sitharaman proposed to omit the TCS.
She also proposed that the provisions of the higher TDS deduction will now apply only in non-PAN cases.
In July 2024, the delay for payment of TDS up to the due date of filing statement was decriminalized. "I propose to provide the same relaxation to TCS provisions as well.", she said.
TDS Limit On Rent Increased : What Does This Mean?
The annual limit of Rs 2.40 lakh for TDS on rent is being increased to Rs 6 lakh.
This can mean the following things :
- Number of TDS transactions will go down.
- Tax relief to landlords, especially those with smaller property holdings.
This also means more savings for the landlord.
- Lesser tax complications might mean greater compliance overall.
- Section 194-I of Hindu undivided family act states that TDS is to be paid over a certain threshold of rent.
With the proposed changes, this threshold is applicable only if rent is above Rs 50,000 per month, or Rs 6 lakh annually.
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Published 10:07 IST, February 2nd 2025