These changes will ensure that taxpayers will 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.
New TDS Limit: In the Union Budget, the government has announced many special changes related to tax. Especially some changes have been made to simplify TDS and TCS. This change is going to be implemented from April 1, 2025, which aims to simplify the tax rules for common taxpayers and businessmen and eliminate unnecessary problems.
These changes will ensure that taxpayers will 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.
New limit 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 instead of 7 lakhs, exemption of up to 10 lakh rupees has been given without TCS. 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 on sending an amount of more than 7 lakh rupees, but now this limit has been increased to 10 lakh rupees.
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.
TCS abolished on sales of more than Rs 50 lakh
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.
More TDS will not be deducted from those who do not file tax returns
Till now, if a person did not file Income Tax Return (ITR), then maximum TDS / TCS was deducted from him. In Budget 2025, it has been proposed to remove this provision, so that now common taxpayers and small businessmen will get relief from unnecessary high tax rates.
No more jail for delay in depositing TCS
Till now, if a person did not deposit the amount of TCS to the government on time, then he had to face punishment and fine ranging from 3 months to 7 years. This rule has been amended in Budget 2025, so that if the outstanding TCS is deposited within the stipulated time, no legal action will be taken.
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