Finance Minister Nirmala Sitharaman presented the Union Budget for the financial year 2025-26 on February 1. During this, she announced huge relief in income tax to the middle class as well as changes in many rules.
Now these rules are coming into effect from April 1, 2025 with the start of the financial year. This change also includes new rules for tax deduction (TDS) and tax collection at source (TCS). Let us tell you about it in detail.
Big relief to senior citizens and homeowners
The central government had announced in the budget that the TDS deduction for senior citizens has been doubled. Earlier it was Rs 50 thousand, which has now become Rs 1 lakh. This will give them great relief. At the same time, landlords have also got a big relief. Actually, the limit of TDS deduction on rent income has been increased from Rs 2.4 lakh per financial year to Rs 6 lakh per financial year.
TCS limit on foreign transactions increased
Apart from this, the limit of TCS deduction for RBI’s Liberalised Remittance Scheme for those with transactions from abroad has also been increased. Earlier, TCS deduction was made on transactions of Rs 7 lakh from abroad, which has been increased to Rs 10 lakh.
TDS removed on education loan
Let us tell you that TCS deduction on education loan from specific financial institution has been removed. Earlier, 0.5% TCS was deducted on education loan of more than Rs 7 lakh, while 5 percent TCS was deducted on education transaction of more than Rs 7 lakh.
This is the limit on dividend and mutual fund earnings
The limit of TDS on dividend income has been increased from Rs 5,000 to Rs 10,000, while the limit of TDS on income from mutual fund units has also been increased from Rs 5,000 to Rs 10,000 per financial year. Apart from this, TDS has also been increased to Rs 10,000 per reward.
LPG price
Oil companies review LPG prices on the first of every month, so you may see a change in cylinder prices early in the morning of April 1.
ATF and CNG-PNG rates
On the first of every month, oil companies also make some changes in the prices of aviation fuel i.e. Air Turbine Fuel (ATF) and CNG-PNG.
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