- By Aditya Pratap Singh
- Fri, 07 Mar 2025 12:10 PM (IST)
- Source:JND
New TDS, TCS Rules: The government has made significant changes to TDS (tax deduction at source) and TCS (tax collection at source) in the 2025 budget to simplify tax payments and reduce hassles. The new rules, which will come into effect from April 1, 2025, will make tax deduction and collection easier for both individuals and businesses, especially in cases such as international money transfers, large purchases and business transactions.
What's changing from April 1?
Increased TDS limit
The government has increased the limit for TDS deduction on interest income, rent and various other payments. This adjustment means lower deductions, resulting in better cash flow and smooth transactions for taxpayers.
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Rules for sending money abroad have been relaxed
You can now transfer up to Rs 10 lakh abroad without paying any TCS (earlier, the limit was Rs 7 lakh). This is great news for families sending money for education, living expenses or medical purposes.
No TCS on Education Loans- If you are sending money abroad through an education loan for education purposes, you will not have to pay any TCS. This is a big relief for students and their families.
Low TCS For Businesses
Businesses selling goods worth more than Rs 50 lakh will not have to pay 0.1% TCS from April 1. This change will improve cash flow and reduce compliance burden for businesses.
No more high TDS/TCS for non-filers
Earlier, people who did not file their income tax returns (ITR) faced higher TDS or TCS rates. Budget 2025 has removed this penalty, making it easier for small businesses and daily taxpayers.
No jail term for delay in depositing TCS – pay on time
Earlier, businesses that failed to deposit TCS on time could face a jail term ranging from 3 months to 7 years. The government has now removed this hefty penalty. If you pay the outstanding TCS within the stipulated time limit, there will be no legal action.
Simple tax system for all
These updates are part of the government's initiative to streamline the tax system and reduce unnecessary burden on taxpayers. It aims to simplify tax payments, ensure smooth business operations, and promote economic growth.
These new rules will benefit both individuals and businesses, resulting in a fairer and more transparent tax system in India.
