New TDS Rules from April 2025: How They Impact Your FD Interest, Rent & More

Starting 1st April 2025, the rules around TDS (Tax Deducted at Source) are changing. These updates are designed to simplify tax compliance, reduce refund hassles, and align deductions with real income—whether it's from your Fixed Deposit, your rented apartment, or even your gaming wins.

If you're a depositor, a senior citizen, a landlord, or a partner in a firm, here’s how these changes will affect you—and how you can use them to your advantage.

What’s New in TDS from April 2025?

Let’s break down the biggest updates you should know about:

1. Higher TDS Exemption on FD Interest for Senior Citizens

The exemption limit for senior citizens on interest income has been raised from Rs. 50,000 to Rs. 1,00,000 per year. This means:

• More of your FD interest stays with you
• Less hassle with tax refund claims
• Greater post-retirement income certainty

Planning for retirement? Lock in your earnings with a high-interest Bajaj Finance Fixed Deposit and enjoy inflation beating growth. Get up to 7.95% p.a., Open FD now!

2. Revised TDS Limit for Non-Senior FD Holders

For individuals below 60, the TDS threshold on interest income is now Rs. 50,000, up from Rs. 40,000.

This small but significant change means:

• Better returns on small-to-mid ticket deposits
• Less surprise deductions at year-end

Smart move after checking your TDS: Turn your refund or excess savings into steady income.

Bajaj Finance Fixed Deposits offer up to 7.95% p.a. returns with flexible tenures. Open FD Account.

INVERT Widget–

For web:-

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Heading Text	Mandatory	90 Char	Highest Credit Ratings | Trusted with 1.4 million Deposits | Assured Returns on FD
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Field 2			Please enter your 10-digit mobile number to proceed
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Text component -

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New Component – INSTA FD :-

For ETB Customers (Logged-in) :

For web:-

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Note - As the values are API driven, we will be updating the title of the fields/ sections.

R1/ R2 – Rows wise distribution of table/ fields. Reach out in case of any query

3. TDS on Gaming Winnings Simplified

TDS on online gaming income will now be deducted only on net winnings at the end of the financial year, not after every transaction.

Why it matters:

• More accurate deductions
• Less tax on casual or occasional wins
• Easier to file returns

4. TDS Clarified on Bonds, Debentures & Dividends

For investments like corporate bonds or mutual fund dividends, the TDS thresholds have been revised and unified. This ensures:

• Consistency across issuers
• Smoother reconciliation during ITR
• Fewer unexpected deductions

Looking for stable returns without volatility? Explore Bajaj Finance FDs—fixed returns, zero market risk, and minimal TDS headaches. Open an FD today, starting with as low as Rs. 15,000.

Also Read: Taxation on Bonds Investments

5. TDS on Partner’s Remuneration (New Section 194T)

Firms now need to deduct TDS on any remuneration paid to partners, bringing these earnings in line with how salaries are taxed.

This ensures greater compliance and eliminates ambiguity on tax liability for partnership income.

Why These Changes Matter to You

These TDS amendments are designed to:

• Reduce tax deducted unnecessarily
• Help you retain more of your earned income
• Streamline refunds and reduce filing errors
• Bring fairness in taxation across income types

Whether you earn through FDs, rent, or digital avenues—this is your chance to align your money with smarter tax planning.

TDS cuts into your interest—but you can stay ahead. Choose a 5-year Bajaj Finance FD with quarterly payouts and plan your finances better. Check rates now!

Component – Fixed deposit variants

For Web :–

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CTA Text	Mandatory		Open FD
CTA Link	Mandatory		https://www.bajajfinserv.in/investments/fixed-deposit
XF Path			/content/experience-fragments/bajajfinserv/web/in/en/investment/deposits/fd/fd-variant/fd-variant

Make the Most of Your Money—With or Without TDS

The government may deduct tax at source, but you still have control over your net income. Here’s how:

• Diversify across tax-advantaged instruments
• Use updated exemption limits strategically
• Invest early in stable, predictable products like FDs

Got extra refund this year? Don’t let it sit idle.

Park it in a safe, high-yielding Bajaj Finance FD.Start with just Rs. 15,000 and earn up to 7.95% p.a. returns. Check Eligibility Now.

Conclusion: TDS Rules Got Smarter—So Should Your Savings Strategy

The 2025 TDS updates are here to make your tax life easier. Whether you’re earning from a fixed deposit, collecting rent, or running a partnership—these rules offer better clarity, higher exemptions, and lower surprise deductions.

Use this opportunity to rethink your inves