New Delhi, April 12 -- With the Income Tax Act, 2025 coming into effect on April 1, the Income Tax Department clarified whether the eligibility criteria for the TDS threshold on bank interest has undergone any change, even as the new law tweaks the definition of a "banking company."

In a X (formerly Twitter) post, I-T Department said on March 30, that there has been no change in existing provisions and that banks, including those covered earlier, will continue to enjoy exemption from tax deducted at source (TDS) on interest below the prescribed threshold limits.

Under the new income tax framework, the primary change is the definition of a "banking company." It now refers to entities governed by the Banking Regulation Act, but does not e...