Finance Bill, 2025 TDS Provisions VisaVis Finance Bill, 2025

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The Tax Publishers Income Tax--Finance Bill, 2025 TDS Provisions Vis-a-Vis Finance Bill, 2025 CA. Nisha Bhandari The Finance Bill, 2025 has proposed various amendments in TDS related provisions. The present write-up highlights all such amendments proposed by the Finance Bill, 2025. 1. Threshold limit provided for TDS from interest on securities under section 193 increased Section 193 requires that any person responsible for paying to a resident any income by way of interest on securities shall, at the time of credit of such income to the account of the payee or at the time of payment thereof, whichever is earlier, deduct income-tax at the rates in force on the amount of the interest payable. Currently there is no threshold for amount of income by way of interest for deduction of tax at source in this section. The Finance Bill, 2025 has proposed to amend section 193 w.e.f. 1-4-2025 so as to provide that tax shall be deducted under this section only when the amount or the aggregate of amounts of income by way of interest on securities exceeds Rs. 10,000 during a financial year. The proviso to section 193 provides for non-deduction of tax at source in certain cases. Clause (v) of the proviso states that no tax is required to be deducted on any interest payable to an individual or a Hindu undivided family, who is resident in India, on any debenture issued by a company in which the public are substantially interested, if -- (a) the amount of interest or, as the case may be, the aggregate amount of such interest paid or likely to be paid on such debenture during the financial year by the company to such individual or Hindu undivided family does not exceed five thousand rupees; and (b) such interest is paid by the company by an account payee cheque. The Finance Bill, 2025 has proposed to amend clause (v) of the proviso to section 193 w.e.f. 1-4-2025 so as to enhance the threshold limit provided under this proviso from Rs. 5,000 to Rs. 10,000. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Income Tax--Finance Bill, 2025

TDS Provisions Vis-a-Vis Finance Bill, 2025

CA. Nisha Bhandari

The Finance Bill, 2025 has proposed various amendments in TDS related provisions. The present write-up highlights all such amendments proposed by the Finance Bill, 2025.

1. Threshold limit provided for TDS from interest on securities under section 193 increased

Section 193 requires that any person responsible for paying to a resident any income by way of interest on securities shall, at the time of credit of such income to the account of the payee or at the time of payment thereof, whichever is earlier, deduct income-tax at the rates in force on the amount of the interest payable. Currently there is no threshold for amount of income by way of interest for deduction of tax at source in this section.

The Finance Bill, 2025 has proposed to amend section 193 w.e.f. 1-4-2025 so as to provide that tax shall be deducted under this section only when the amount or the aggregate of amounts of income by way of interest on securities exceeds Rs. 10,000 during a financial year.

The proviso to section 193 provides for non-deduction of tax at source in certain cases. Clause (v) of the proviso states that no tax is required to be deducted on any interest payable to an individual or a Hindu undivided family, who is resident in India, on any debenture issued by a company in which the public are substantially interested, if --

(a) the amount of interest or, as the case may be, the aggregate amount of such interest paid or likely to be paid on such debenture during the financial year by the company to such individual or Hindu undivided family does not exceed five thousand rupees; and

(b) such interest is paid by the company by an account payee cheque.

The Finance Bill, 2025 has proposed to amend clause (v) of the proviso to section 193 w.e.f. 1-4-2025 so as to enhance the threshold limit provided under this proviso from Rs. 5,000 to Rs. 10,000.