1. Section 194A – Interest Other Than Interest on Securities:
   • Senior Citizens: The TDS exemption limit has been increased from ₹50,000 to ₹1,00,000 per financial year.
   • Others: The exemption limit has been raised from ₹40,000 to ₹50,000 per financial year.
2. Section 194 – Dividend Income:
   • The TDS exemption limit has been increased from ₹5,000 to ₹10,000 per financial year.
3. Section 194DA – Life Insurance Policy Payouts:
   • The TDS exemption limit has been increased from ₹1,00,000 to ₹2,50,000.
4. Section 194H – Commission or Brokerage:
   • The TDS exemption limit has been increased from ₹15,000 to ₹20,000 per financial year.
5. Section 194I – Rent:
   • TDS is now applicable if the monthly rent exceeds ₹50,000. This means that any rental payment of ₹50,000 or more per month will attract TDS.
6. Section 194J – Fees for Professional or Technical Services:
   • The TDS exemption limit has been increased from ₹30,000 to ₹50,000 per financial year.
7. Section 194B & 194BB – Winnings from Lottery, Crossword Puzzles, and Horse Racing:
   • TDS will now be deducted only if a single transaction exceeds ₹10,000, replacing the previous aggregate limit.
8. Section 206AB – Higher TDS Rates for Non-Filers:
   • This section has been omitted, removing the provision for higher TDS rates for non-filers of income tax returns.

TCS (Tax Collected at Source) Changes:

1. Section 206C(1H) – TCS on Sale of Goods:
   • This section has been omitted to avoid overlap with TDS provisions under Section 194Q.
2. Section 206C(1G) – TCS on Foreign Remittances under LRS and Overseas Tour Packages:
   • Threshold Increase: The exemption limit for TCS on foreign remittances under LRS has been increased from ₹7,00,000 to ₹10,00,000 per financial year.
   • Education Loans: Remittances for education financed by loans from specified financial institutions are now exempt from TCS.
   • TCS Rates:
     • Education and Medical Treatment: 5% TCS on amounts exceeding ₹10,00,000.
     • Other Remittances: 20% TCS on amounts exceeding ₹10,00,000.
3. Section 206CCA – Higher TCS Rates for Non-Filers:
   • This section has been omitted, removing the provision for higher TCS rates for non-filers of income tax returns.
4. Section 276BB – Prosecution for Failure to Pay TCS:
   • Prosecution will not be initiated if the TCS is deposited before the due date for filing the quarterly statement under Section 206C(3).

These amendments aim to simplify tax compliance and reduce the burden on taxpayers.

Summary:

Today is the deadline for the last advance tax installment for FY24-25. Taxpayers are required to adhere to the following schedule based on their estimated annual tax liability:

• Installment Schedule:
  • 15% of the estimated tax liability is due by June 15.
  • 45% of the total liability should be met cumulatively by September 15.
  • 75% is required cumulatively by December 15.
  • 100% of the estimated liability must be paid by March 15.
• Interest & Penalties:
  • Section 234C (Default on Installments):
    If there is any delay or shortfall in meeting any of the installment deadlines, interest is charged under Section 234C. This interest is computed at 1% per month (or part of a month) on the difference between the tax liability expected by the installment and the amount actually paid.
  • Section 234B (Underpayment of Total Liability):
    If the total advance tax paid is less than 90% of the total assessed tax liability, interest under Section 234B is levied on the outstanding amount from April 1 until the tax is paid. Notably, if the balance is cleared by March 31, no interest under Section 234B will be applicable since the interest period commences on April 1.
• Exemptions:
  Taxpayers whose total tax liability for the financial year is less than ₹10,000 are exempt from the requirement to pay advance tax. However, it remains essential to complete the final tax payment by the due date to avoid any penalties. Maintaining proper documentation is vital for verifying eligibility for this exemption.

Timely payment of advance tax is crucial to avoid additional interest and penalties. Adhering to these schedules and ensuring full compliance not only helps in managing financial obligations efficiently but also minimizes the risk of incurring unnecessary extra interest under Sections 234B and 234C.

• Section 194DA: TDS on maturity or bonus of life insurance policy reduced from 5% to 2%.
• Section 194A: TDS on repayment of units by Unit Trust of India and mutual funds is abolished.
• Section 194G: TDS on commission from sale of lottery reduced from 5% to 2%.
• Section 194H: TDS on commission and brokerage reduced from 5% to 2%.
• Section 194IB: TDS on rent payments exceeding ₹50,000 per month reduced from 5% to 2%.
• Section 194M: TDS on certain specific contracts reduced from 5% to 2%.
• Section 194O: TDS by e-commerce operators reduced from 1% to 0.1%.

TDS on Property Transactions:
Previously, for property purchases over ₹50 lakhs, TDS could be shared among multiple buyers. This exemption will be discontinued. All buyers, regardless of the number, must deduct TDS if the property value exceeds ₹50 lakhs.

Future Amendments (Effective April 1, 2025):

Section 194D: TDS on insurance commission for agents reduced from 5% to 2%.
Section 194T: New section for TDS on payments made by partnerships at a rate of 10%.