The Centre in the Budget announced many important changes related to tax, especially to make TDS and TCS easy and simple. The purpose of these changes – which will be effective from April 1, 2025 – is to make tax compliance easier for common taxpayers and traders and eliminate unnecessary complexities.
These changes will ensure taxpayers do not face the hassles of tax deduction and collection like before on sending money abroad, making big purchases or business transactions. Let us know what special changes have been made in the budget this time.
- New limits of TDS
When you earn interest from the bank, pay rent or make any big payment, TDS is deducted after a certain limit. In this budget, it has been proposed to rationalize these limits, so that you do not have to face unnecessary tax deduction again and again and the cash flow remains better.
- Relief on sending money abroad: Now up to Rs 10 lakh without TCS instead of Rs 7 lakh
If you send money abroad for children’s education, family expenses or any other reason, then now there is relief news for you.
Earlier, TCS had to be paid on sending an amount of more than Rs 7 lakh, but now this limit has been increased to Rs 10 lakh.
Not only this, if the money is being sent through education loan, then no TCS will be levied on it. This will give great relief to the students studying abroad and their parents.
Also read: Income tax officials can access your email, social media accounts from next year: Report
- Good news for traders: TCS abolished on sales of more than Rs 50 lakh
If you do business and have big sales, then now you will not need to deduct 0.1% TCS on sales above Rs 50 lakh.
From April 1, 2025, this rule will be completely abolished, which will give better cash flow to the businessmen and ease tax compliance.
- Now more TDS / TCS will not be deducted for those who do not file tax returns
Till now, if a person did not file Income Tax Return (ITR), then TDS / TCS was deducted from him at a higher rate.
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