TDS & TCS Rule: In the budget, the Center has announced many important changes related to tax, especially to make TDS and TCS easier and simpler. These changes, which will come into effect from April 1, 2025, are aimed at making tax compliance easier for common taxpayers and businessmen and eliminating unnecessary complexities.
These changes will ensure that taxpayers do not have to face the problems of tax deduction and collection like before when sending money abroad, making big purchases or doing business transactions. Let us know what special changes have been made in the budget this time.
New limit of TDS
When you earn interest, pay rent or make any big payment from the bank, TDS is deducted after a certain limit. In this budget, it was proposed to rationalize these limits, so that you do not have to face unnecessary tax deductions again and again and the cash flow remains better.
Relief on sending money abroad
If you send money abroad for children’s education, family expenses or any other reason, then now there is a relief news for you. Earlier, TCS had to be paid for 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 provide great relief to students studying abroad and their parents.
Good news for businessmen
If you do business and your sales are large, then now you will not need to deduct 0.1% TCS on sales of more than Rs 50 lakh. This rule will be completely abolished from April 1, 2025, which will give better cash flow to businessmen and ease tax compliance.
Those who do not file tax returns will not be deducted more TDS/TCS
Till now, if a person did not file Income Tax Return (ITR), then TDS/TCS was deducted from him at a higher rate. In Budget 2025, it has been proposed to remove this provision, which will now provide relief to common taxpayers and small businessmen from unnecessary high tax rates.
Now there is no fear of going to jail for delay in depositing TCS
Till now, if a person did not deposit the TCS amount to the government on time, he had to face a punishment of 3 months to 7 years and a fine. Now this rule has been amended in Budget 2025, so that if the outstanding TCS is deposited within the stipulated time, then no legal action will be taken.
