The Finance Act, 2025 has introduced significant amendments to the provisions relating to Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) under the Income-tax Act, 1961. These revised rates, which come into effect from 1 April 2025, will impact a broad range of transactions including payment of professional fees, interest, dividends, among others.

With these changes, it becomes imperative for corporates, businesses and deductors / collectors to understand the revised provisions and take appropriate steps to ensure timely and accurate compliance including making necessary adjustments to their accounting and ERP systems and updating internal tax deduction/collection processes to avoid interest, penalty, or disallowances under the IT Act.

Please find our attached Newsflash wherein we have highlighted certain key updates to the applicable TDS/TCS rates which are effective from 1 April 2025.

We trust you find the same useful.

RSM India Newsflash - Overview of Changes in TDS and TCS provisions w.e.f. 1st April 2025.pdf