The Income Tax Department has confirmed that the TDS (Tax Deducted at Source) provisions for bank interest remain unchanged under the Income Tax Act, 2025, effective April 1. The exemption threshold for individuals is ₹50,000 and ₹100,000 for senior citizens, meaning TDS will only be deducted on interest exceeding these limits. The primary change in the new law is the updated definition of a 'banking company,' which now includes entities governed by the Banking Regulation Act. However, this does not affect the TDS application, ensuring depositors will not experience any changes in how TDS is deducted on bank interest. The standard TDS rate is 10%, but it increases to 20% if a valid Permanent Account Number (PAN) is not provided. Individuals with total taxable income below the exemption limit can avoid TDS by submitting Form 121, which replaces the previous Form 15G and Form 15H. Payments to non-residents are subject to different TDS rules under Section 195.