News shortcuts: From the Courts | Top Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | Professional Updates | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax | PPE Safety Kit SITRA Approved | PPE Safety Kit
General »
 Income tax scrutiny down in AY18; Delhi faced the highest, Bihar the least
 Delhi govt warns strict action against companies defaulting on tax payments
 Tax burden on salaried individuals, professionals to increase Delhi
 IT department randomly picks up cases to remove bias from tax scrutiny
 TDS on cash withdrawal alert! New functionality from Income Tax Department for banks and post offices
 Income tax department notifies exemption for sovereign wealth funds
 How much gold can you keep at home as per income tax rules?
 New income tax slab: Rules changed, no exemption on meal vouchers & coupons
 Pharma shines in advance tax pay
 SDMC starts offline facility for depositing property tax
 Covid-19 crisis threatens to wipe out gains from corporation tax cut

TDS Benefits Announced In Budget 2019 And What They Mean For You
February, 08th 2019

The hike in TDS threshold on interest income will benefit small depositors and non-working spouses, the government has said.

In its last budget before general election due by May, the government has announced a number of tax changes. Other than some income tax rules, including rebate applicable to personal income, the government has also announced changes to the rules on TDS - or tax deducted at source. TDS or tax deducted at source is a direct tax paid to the government under certain conditions. Deduced by the payer, TDS is aimed at collection of tax from the very source of income.

Here are key things to now about TDS benefits announced in the budget 2019:
TDS on payment of interest income

The interim budget for 2019-20 proposes to raise the threshold of TDS applicable to interest income from bank or post office deposits by four times. As per existing rules, TDS is applicable on interest income above Rs. 10,000 from post office/bank deposits. The Finance Bill 2019 proposes to change this threshold to Rs. 40,000. This means that TDS won't be applicable to such interest income up to Rs. 40,000, instead of Rs. 10,000 at present.

The hike in TDS threshold on interest income will benefit small depositors and non-working spouses, the government has said.

The government has also proposed to increase the TDS threshold applicable to payment of rent by one-thirds. This means that payment of rent up to Rs. 2.4 lakh will not attract TDS. As per existing rules, TDS is applicable on payment of rent above Rs. 1.8 lakh. In other words, payment of rent above 1.8 lakh attracts TDS at present.

Home | About Us | Terms and Conditions | Contact Us | PPE Kit SITRA Approved | PPE Safety Kit
Copyright 2020 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting