Revised TDS Rate Chart from 1st April 2025
The Union Budget 2025 has introduced significant changes in TDS (Tax Deducted at Source) rates and income tax slabs, bringing much-needed relief for taxpayers. Finance Minister Nirmala Sitharaman announced tax cuts for the middle class and proposed new TDS limits, particularly benefiting senior citizens. This blog provides a comprehensive overview of the revised TDS rate chart from 1st April 2025, along with the new income tax slabs for FY 2025-26.
Key Highlights from Budget 2025:
- Income up to ₹12 lakh made tax-free under the New Tax Regime, giving substantial relief to salaried employees and middle-class taxpayers.
- TDS exemption limit increased for senior citizens, encouraging savings in bank and post office fixed deposits.
- Revised TDS rates and limits for specific categories of payments to simplify compliance and reduce the tax burden.

New Income Tax Slabs for FY 2025-26 (AY 2026-27)
The income tax slab system in India ensures progressive taxation, where individuals with higher incomes pay higher tax rates. In Budget 2025, the government proposed revised income tax slabs under the New Tax Regime, providing considerable tax relief for middle-income groups.
Here are the revised income tax slabs for FY 2025-26:
Income Range (₹) | Tax Rate (New Regime) |
Up to ₹12,00,000 | Nil |
₹12,00,001 – ₹15,00,000 | 10% |
₹15,00,001 – ₹20,00,000 | 20% |
Above ₹20,00,000 | 30% |
Note: These slabs are applicable only under the New Tax Regime. The Old Tax Regime with exemptions and deductions remains optional.
What is TDS and Why is it Important?
Tax Deducted at Source (TDS) is a mechanism for collecting income tax at the source of income generation. The individual or entity making specific payments is required to deduct tax at the prescribed rates and deposit it with the government. This ensures timely tax collection and reduces the chances of tax evasion.
Revised TDS Rate Chart for FY 2024-25 (AY 2025-26)
Budget 2025 introduced various amendments to TDS rates to provide relief to taxpayers and simplify compliance. Here’s a detailed chart highlighting the revised TDS rates for different types of payments:
Benefits of Revised TDS Rates for Senior Citizens
The Budget 2025 changes are particularly favorable for senior citizens. By increasing the TDS exemption limit for interest income, the government aims to enhance their savings and reduce the tax burden. Here’s how these changes will help:
- Higher Threshold for TDS on Interest Income: Senior citizens can now earn more interest from bank and post office deposits without worrying about TDS deductions.
- Simplified Compliance: Reduced TDS rates on interest income mean fewer deductions and easier compliance for individuals.
How to Calculate Income Tax for FY 2025-26
To understand how these changes affect your tax liability, you can use the income tax calculator for FY 2025-26. Simply input your income details and deductions (if applicable) to know your tax liability under both the Old and New Tax Regimes.
Example Calculation:
- Annual Salary: ₹15,00,000
- Under New Tax Regime: ₹15,00,000 – ₹12,00,000 = ₹3,00,000 taxable at 10%
- Tax Payable: ₹30,000
Conclusion
Budget 2025 has brought significant relief for the middle class and senior citizens through revised income tax slabs and TDS limits. The focus on reducing tax rates and increasing TDS thresholds makes savings more attractive and encourages compliance. Whether you are a salaried employee or a senior citizen, it’s essential to stay updated on these changes to optimize your tax planning and reduce your tax burden.
Stay tuned for more updates and detailed explanations on the latest taxation rules and regulations!
Would you like me to add more examples or a step-by-step guide on using an income tax calculator?
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