On february 1, Finance minister Nirmala Sitharaman unveiled the Union Budget for the fiscal year 2025–2026. She offered significant income tax reductions for the middle class during this time, along with other regulation adjustments. These regulations will now take effect on april 1, 2025, when their fiscal year begins. New guidelines for tax collection at source (TCS) and tax deduction at source (TDS) are also included in these modifications.

Big relief to senior citizens and landlords
The TDS deduction for older residents has been quadrupled, according to the central government's budget announcement.  Previously, it was Rs 50,000, but now it is Rs 1 lakh.  They will be greatly relieved by this.  Landlords have also had a significant sense of relief at the same time.  In actuality, the annual maximum for the TDS deduction on rent income has been raised from Rs 2.4 lakh to Rs 6 lakh.
 
TCS limit increased on foreign transactions
In addition, the RBI's Liberalized Remittance Scheme has raised the tcs deduction cap for individuals who do international transactions. tcs deduction was formerly applied to cross-border transactions totaling Rs 7 lakh; now, it is Rs 10 lakh.
 
TDS removed on education loan
At the same time, certain financial institutions no longer deduct tcs from student loans.  In the past, 5% tcs was withheld from self-financed education transactions exceeding Rs 7 lakh, while 0.5% tcs was withheld from education loans exceeding Rs 7 lakh.
 
This is the maximum amount that can be earned via mutual funds and dividends.
 
We would like to inform you that the TDS limit on dividend earnings has been raised from Rs 5000 to Rs 10,000, and the TDS limit on mutual fund unit earnings has also been raised from Rs 5,000 to Rs 10,000 every fiscal year.  In addition, the TDS on prizes has been raised to Rs 10,000 per reward.
 
 

 
For more interesting updates wa click and follow Indiaherald WhatsApp channel

Find out more:

Tax

SIBY JEYYA

12/03/2025 08:14 AM