Budget updates - TDS provisions

[CS Swati Dodhi]

TAX DEDUCTED AT SOURCE

1. Tax deduction at source on interest
As proposed to amend section 194A  to increase the threshold limit for deduction of tax at source on interest payable to a resident (other than interest on securities) from ₹ 10,000 to ₹ 40,000.
These amendments will take effect from April 1, 2020 and will, accordingly, apply in relation to the assessment year 2020- 21 and subsequent years.

2.Tax deduction at source on rent
It is proposed to amend section 194I of the Act to increase the threshold limit for deduction of tax at source on rent from ₹ 1,80,000 to ₹ 2,40,000.

These amendments will take effect from April 1, 2020 and will, accordingly, apply in relation to the assessment year 2020-21 and subsequent years.