Budget 2025 proposes TDS limit for Dividend Income

A proposal in Budget 2025 seeks to introduce a TDS limit for dividend income, which will affect how individuals and corporations are taxed on earnings from dividends. This change is expected to provide tax relief to smaller dividend earners by raising the threshold at which TDS is applied. The government aims to reduce the burden on individuals and businesses receiving lower amounts of dividend income by ensuring that only those with higher earnings face TDS deductions. This reform will encourage greater investment and simplify the tax process for those receiving income from dividends.