TDS And TCS Rules: Last month, on February 1, 2025, the general budget was presented by the Finance Minister. In that budget, Finance Minister Nirmala Sitharaman made several relief announcements for taxpayers. In these announcements, changes in the rules related to TDS and TCS were also announced. Let us tell you that these new rules related to TDS and TCS are going to be implemented from this financial year (Financial year 2025-2026).
To simplify the rules for taxpayers, some special changes were announced by the Finance Minister in the Union Budget. These changes are going to be implemented from April 1. These special changes will also include new rules for Tax Deduction at Source and Tax Collection at Source. Let us know in the news what impact these rules can have on taxpayers.
Relief amendments for these people-
It was announced in the budget by the central government that the TDS deduction for senior citizens has been doubled. Earlier this deduction was Rs 50,000, which has been increased to Rs 1 lakh after the budget announcement. After this announcement by the government, taxpayers as well as landlords have got a big relief, because, not only the TDS deduction has been increased from this financial year, but the limit of TDS deduction on rental income has also been increased. Earlier this limit was Rs 2.4 lakh per financial year, which has now been increased to Rs 6 lakh per financial year.
Increase in TCS limit-
In this announcement, not only the limit of TDS has been increased, but the TCS deduction limit has also been increased for those who have transactions from abroad for RBI’s Liberalized Remittance Scheme. This limit has also been increased. Earlier, TCS was deducted on transactions of Rs 7 lakh across the border, but now from the new financial year, TCS will be deducted on transactions of Rs 10 lakh.
TDS will not be levied on education loan –
Along with this, in the budget, if a student takes an education loan from a specific financial institution, then the TCS deduction on education loan has been removed. Earlier, 0.5 percent TCS was deducted on taking an education loan of more than Rs 7 lakh, whereas, 5 percent TCS was deducted on self-financed education transactions of more than Rs 7 lakh. However, now these rules will be effective from April 1, 2025.
Limit on earnings from dividends-
Along with this, the TDS limit has also been increased on the income earned from dividends. Earlier it was Rs 5000, which has been increased to Rs 10,000. Along with this, the TDS limit on the income from the units of mutual funds has been increased from Rs 5 thousand to Rs 10 thousand per financial year. Not only this, there will be a deduction of TDS on prize money as well, which has been increased to Rs 10 thousand per prize.
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