In a move aimed at easing the tax burden and improving cash flow for households, the government has introduced significant changes to Tax Deducted at Source (TDS) rules effective from September 25, 2025. The changes, which cover interest on deposits, dividends, commissions, and lottery winnings, are expected to benefit senior citizens, middle-class families, and small investors. Advertisement

Announcing the update on X (formerly Twitter), chartered accountant Nitin Kaushik wrote, “These changes will put more cash in your hand instead of locking it in refunds.”

Key highlights

The annual interest exemption limit for TDS has been doubled from ₹50,000 to ₹1,00,000. For example, if a retiree earns ₹80,000 in annual interest, no TDS will be deducted. Kaushik called it a “big relief for reti

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