What is the turnover limit for TDS deduction?

The turnover limit for TDS deduction depends on the specific nature of the payment and the relevant section of the Income Tax Act, as the threshold limits vary for different types of payments. From April 1, 2025, several threshold limits have been revised to reduce the compliance burden and increase exemption limits.

Here are some key updated TDS threshold limits for FY 2025-26 (AY 2026-27):

Important points:

• TDS is deducted only if the payment exceeds the specified threshold limit.
• For rent payments, TDS applies if monthly rent exceeds ₹50,000.
• Senior citizens enjoy higher exemption limits on interest income.
• Thresholds vary by payment type and recipient category.

These revised limits came into effect from April 1, 2025, as part of the Union Budget 2025 reforms aimed at easing tax compliance and increasing disposable income.

In summary:

The turnover or payment amount must exceed the specific threshold limit for TDS to be deducted. These limits differ by payment type and have been increased recently to reduce the tax burden on smaller transactions. Use the TDS calculator to know the total TDS for the payment amount.