Important TDS Changes for NGOs from April 1, 2025

Dear friends,

A significant change in TDS rates that will be effective from April 1, 2025.

Section 194I - TDS on Rent Payments

• Previous threshold: ₹2,40,000 per financial year
• New threshold: ₹6,00,000 per financial year -OR- ₹50,000 per month (or part thereof)

Section 194J - TDS on Professional & Technical Services

• Previous threshold: ₹30,000 per financial year
• New threshold: ₹50,000 per financial year

What This Means For Your Organization:
These changes will significantly reduce TDS compliance requirements for many NGOs, especially smaller organizations. You will now be able to make higher payments without the need to deduct tax at source, improving cash flow for both your organization and your vendors/service providers.

Have questions regarding these changes? Leave a comment on our forum discussion below: 

Revised TDS rates effective 1.4.2025

Please note the revised TDS rates under sections 194I and 194J which are more frequently used by we NGOs. Section 194I (Rent payment): Threshold revised from Rs.240,000 to Rs.600,000 for a financial year or if monthly or part thereof for a month is Rs.50,000 or more Section 194J (Fees for Professional & Technical Services): Threshold revised from Rs.30,000 to Rs.50,000 for a financial year Thanks

PATTIC ForumSharad

PATTIC is a free platform helping NGOs navigate compliance and governance. If you have any compliance related questions, you can email them to [email protected] to start a discussion on the forum.

Please help us improve our platform by sharing your feedback in this quick, anonymous survey.

Warm regards,
PATTIC

P.S. If you found this newsletter helpful, please forward it to colleagues who might benefit from this information.

• Share
• Tweet