Along with income tax, the government has given another big exemption, not a single rupee will have to be paid up to 10 lakhs.
The Finance minister has proposed to increase the limit of tcs from 7 lakhs to 10 lakh rupees. The Finance minister has also proposed to remove tcs on remittances in matters related to education.
Finance minister Nirmala Sitharaman has made many big announcements in Budget 2025. While there is no need to pay a single rupee tax on annual income up to 12 lakhs, the limit of ITR and TDS has also been increased. The limit of TDS has been increased to 10 lakhs and a big announcement has been made for the elderly in a tax deduction, they will be able to file returns for four years. But, apart from all this, the government has given another big exemption. Let us know about it in detail.
What is the big exemption?
Actually, during the budget speech, Finance minister Nirmala Sitharaman proposed to increase the limit of collecting 'Tax at Source' (TCS) under RBI's Liberalized Remittance Scheme (LRS). The Finance minister has proposed to increase the limit of tcs from Rs 7 lakh to Rs 10 lakh. The Finance minister has also proposed to remove tcs on remittance in education related matters.
Speaking to Financial Express, Bhavik Thakkar, CEO of Abans Investment Managers, said that exemption on tcs on LRS remittance up to Rs 10 lakh is a good step for investors to invest in global funds. This limit was earlier Rs 7 lakh.
What is tcs Remittance?
TCS (Tax Collected at Source) Remittance means that when indian citizens send money abroad, a certain percentage of tax is levied on it. This tax is deducted by the bank or remittance service at the time of the transaction. The tcs system was implemented on october 1, 2020, when the bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW'>reserve bank of india (RBI) decided to apply it to remittances under the Liberalised Remittance Scheme (LRS).
Can also be put in income tax return
In Budget 2025, the Finance minister announced that now taxpayers paying tcs can get credit of this amount while filing their income tax returns. This will provide relief to taxpayers and they will be able to reduce their tax obligations. Apart from this, it has also been proposed to remove TCS on remittances made for education purposes.
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