New TDS Threshold: No Tax Deduction on Dividends and Mutual Fund Income Up to Rs. 2,500 Announced by Finance Ministry.

The circular issued by the Ministry of Finance and Company Affairs outlines the threshold limits for tax deduction at source (TDS) on dividends and income from mutual fund units. Following the Finance Minister's announcement, the threshold limit for TDS on such income is set at Rs. 2,500. This means no tax will be deducted on dividend income or mutual fund income up to this amount received by shareholders or unit holders. The circular instructs relevant tax authorities to implement these changes and ensure compliance with the updated threshold limits.