Amendments related to Tax Deduction at Source (TDS) deductions notified in the Finance Act 2025 w.e.f. 01 April, 2025: SB Order No. 06/2025

Amendments related to Tax Deduction at Source (TDS) deductions under various sections of Income Tax Act 1961 notified in the Finance Act 2025 w.e.f. 01 April, 2025: SB Order No. 06/2025 dated 04.04.2025

SB Order No. 06/2025

FS-10/1/2022-FS-DOP
Government of India
Ministry of Communications
Department of Posts
(Financial Services Division)

Dak Bhawan, New Delhi — 110001
Dated: 04.04.2025

To
All Heads of Circle/Region

Subject: Amendments related to Tax Deduction at Source (TDS) deductions under various sections of Income Tax Act 1961 notified in the Finance Act 2025 w.e.f. 01 April, 2025 — Reg.

Madam / Sir,

This is with reference to amendments made vide Finance Act, 2025, published on the 29th March 2025.

2. In accordance with the Finance Act, 2025, provisions related to TDS deduction under various sections of Income Tax Act 1961 have been amended as under:

2.1 ‘In section 194A of the Income-tax Act, in sub-section (3),— (a) in clause (i),—

1. for the words “forty thousand rupees”, wherever they occur, the words ‘fifty thousand rupees’ shall be substituted;
2. in sub-clause (d), for the words “five thousand rupees”, the words “ten thousand rupees” shall be substituted;
3. in the third proviso,—
   1. for the words “forty thousand rupees’, the words “fifty thousand rupees” shall be substituted;
   2. for the words “fifty thousand rupees”, the words “one lakh rupees” shall be substituted;

2.2. “In section 80CCA of the Income-tax Act, in sub-section (2), after the first proviso, the following proviso shall be inserted and shall be deemed to have been inserted with effect from the 29th August, 2024, namely:— “Provided further that the amount referred to in clause (a) which is withdrawn on or after the 29th August, 2024, shall not be charged to tax in the case of an assessee, being an individual”.

2.3 “In section 194H of the Income-tax Act, in the first proviso, for the words “fifteen thousand rupees”, the words “twenty thousand rupees” shall be substituted”

3. It is requested to circulate it to all concerned for information and necessary guidance. This may also be placed on the notice board of all Post Offices in public area.

4. This issues with the approval of the Competent Authority

Encl. As above.

(Deven Kumar Sharma)
Assistant Director (SB-II)