Budget 2025: TDS limit on Dividend Income from Mutual Funds Increased to 10,000

The Union Budget 2025 introduced a proposal to increase the TDS limit on dividend income from mutual funds to Rs. 10,000. Previously, the TDS was applicable once the dividend income exceeded Rs. 5,000. This increase will benefit individual investors, particularly those receiving dividends from mutual funds, by reducing the need for TDS deductions on smaller earnings. It will also simplify tax filing for investors who might otherwise have been required to file returns for relatively small amounts of TDS. The proposal is designed to provide relief to taxpayers and promote greater participation in mutual fund investments, which could lead to higher savings and investments among individuals.