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Starting July 1, 2025, the Indian government has introduced key TDS (Tax Deducted at Source) changes that directly impact salaried individuals. These changes affect how much tax is deducted from your paycheck, how your income is classified, and how your financial documents are reported.
Whether you're a fresher or a seasoned professional, these changes will show up in your next salary slip.
So what’s new—and how can Vizzve Finance help you adjust?
What’s Changed in TDS Rules (July 2025)?
1. Stricter PAN–Aadhaar Compliance
Non-linked PANs will face higher TDS deduction (20%)
Check and link immediately to avoid income loss
2. TDS on Leave Encashment Above ₹3L
Encashment at resignation or retirement beyond ₹3 lakh now taxable at 10%
3. TDS on Freelance or Gig Payments
New section mandates 5% TDS on aggregate payouts above ₹50,000/month
Impacts salaried employees with side gigs
4. Declaration of Old vs. New Regime
Employers must deduct TDS based on the tax regime you choose at the start of FY
No switching mid-year without revised declaration
5. Higher TDS for Late ITR Filers
If you haven’t filed ITR for the previous 2 years, TDS rates may be doubled
What This Means for Your Salary
| Situation | Impact on Take-Home |
|---|---|
| PAN not linked | Less in-hand salary due to 20% TDS |
| No tax regime declared | Employer may default to higher deduction |
| Freelance income | Expect monthly TDS deduction from gigs |
| Leave encashment > ₹3L | Extra deduction during exit/retirement |
Many employees may notice lower net salary in July onwards unless action is taken.
How Vizzve Finance Helps You Navigate These Changes
Emergency Loan Support
If TDS deductions cause sudden cashflow issues, Vizzve offers:
Instant small-ticket loans for mid-month needs
Flexible repayment options
Salary-Based EMI Plans
Vizzve structures your EMI based on net take-home, so rising TDS doesn’t overburden you
Tax-Aware Borrowing
Our app shows your estimated tax impact on EMI eligibility, so you borrow smart
Human + AI Support
Got queries about how TDS affects your loan?
Vizzve’s customer support is here to help.
What Should You Do Now?
✅ Check if your PAN is linked to Aadhaar
✅ Declare your tax regime to HR ASAP
✅ File ITR for previous years if pending
✅ Review freelance income if applicable
✅ Use Vizzve to fill cashflow gaps caused by higher deductions
FAQs
Q1: Can Vizzve offer loans if my net salary drops due to TDS?
Yes. Vizzve considers adjusted net income and provides custom loan amounts accordingly.
Q2: I’m confused about which tax regime to choose. Can Vizzve help?
While Vizzve doesn’t offer tax advice, our EMI planner shows how each regime affects your borrowing potential.
Q3: What if my TDS deduction leaves me unable to cover rent or bills?
You can take a short-term instant loan on Vizzve to cover the gap, repay over 3–6 months.
Final Word: Stay Ahead of the TDS Game
These new TDS rules are designed to improve tax compliance—but they can leave you with less take-home pay and more confusion.
📲 With Vizzve Finance, you get the financial cushion and clarity to stay stress-free—even during policy shifts.
Published on : 4th July
Published by : SMITA
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