TDS limit changes related to Post Office Schemes
Section 194A (Interest other than securities)
- Old Limit: ₹40,000
- New Limit: ₹50,000 (for individuals/HUF)
- Sub-clause (d): Threshold for interest on Post Office Savings Accounts increased from ₹5,000 to ₹10,000.
- Third Proviso: For Senior Citizens, the limit increased from ₹50,000 to ₹1,00,000.
Section 80CCA (Tax exemption on withdrawals from Post Office Savings Schemes)
- Amendment: Withdrawals on or after 29th August 2024 shall not be taxed for individuals.
Section 194H (Commission/Brokerage)
- Old Limit: ₹15,000
- New Limit: ₹20,000
- Other Relevant Sections for Post Office Schemes
Section 193 (Interest on Securities):
TDS threshold for Post Office Time Deposit (POTD) interest increased from ₹5,000 to ₹10,000.
Summary of Changes
| Section | Applicable to | Old Limit | New Limit |
|---|---|---|---|
| 194A | Interest (Post Office Savings) | ₹5,000 | ₹10,000 |
| 194A | General Interest (Individuals/HUF) | ₹40,000 | ₹50,000 |
| 194A | Senior Citizens | ₹50,000 | ₹1,00,000 |
| 80CCA | Post Office Withdrawals (Individuals) | Taxable | Tax-free (from 29/08/2024) |
| 194H | Commission (e.g., PLI agents) | ₹15,000 | ₹20,000 |
| 193 | POTD Interest | ₹5,000 | ₹10,000 |
- These amendments are effective from 1st April 2025 unless specified otherwise.
Note: The changes aim to reduce TDS burdens on small depositors and incentivize savings in Post Office Schemes.