New Delhi: Finance Minister Nirmala Sitharaman Saturday announced rationalisation of TDS (Tax Deduction at Source) regime to ease compliance burden.
Presenting the Budget for 2025-26, she said tax proposals are guided by income tax reforms for middle class, TDS rationalisation, and easing compliance burden.
The government will also be introducing a new Income Tax (I-T) bill in Parliament next week.
Reforms are not destinations but means to achieve good governance for the people and economy, the finance minister said and added that the new I-T bill will be half of the current volume, clear and direct in wording.
Rationalising TDS / TCS
👉 Limit for tax deduction on interest for senior citizens to be doubled from ₹50,000 to ₹1 lakh
👉 Annual limit for TDS on rent to be increased from ₹2.40 lakh to ₹6 lakh
👉Threshold to collect tax at source on remittances under RBI’s Liberalized… pic.twitter.com/HpvSf7EzGA
— Ministry of Finance (@FinMinIndia) February 1, 2025
Meanwhile, the government will increase the limit of TCS on remittances under RBI’s liberalised remittance scheme from Rs 7 lakh to Rs 10 lakh.
Also, Sitharaman said that 35 additional goods for EV battery, 28 additional goods for mobile phone battery production will be included in the list of exempted capital goods.
