No More Nil TDS Certificates Under New Tax Bill 2025: Impact on Indians and NRIs Explained

A significant change is anticipated under the new Tax Bill 2025, which proposes the discontinuation of nil Tax Deducted at Source (TDS) certificates. Currently, individuals and entities with low or no taxable income can obtain these certificates to avoid TDS deductions on their income. The elimination of this provision will have notable implications for both Indian residents and Non-Resident Indians (NRIs) who currently benefit from it. Individuals with income below the taxable threshold will now face TDS deductions, necessitating the filing of income tax returns to claim refunds. Similarly, NRIs receiving income in India, who often rely on nil TDS certificates due to tax treaties or low Indian-sourced income, will also be affected, potentially leading to increased compliance procedures for claiming tax benefits.