Various significant changes have been announced by the Centre in the Budget related to tax, particularly to make TDS and TCS more straightforward. From April 1, 2025, these changes aim to simplify tax compliance for common taxpayers and traders and eliminate unnecessary complexities.
Such an amendment will ensure that taxpayers do not suffer the issues of tax deduction and collection like before on sending money abroad, which makes big purchases or business transactions.
Let us learn what particular amendments have been induced in the budget this time.
Rationalization of TDS Limit
After a specific limit, the Tax Deducted at Source TDS gets deducted when you earn interest from the bank, pay rent, or make any big payment. In this budget, it has been proposed to rationalize such limits so that you do not need to suffer unnecessary tax deductions repeatedly and the cash flow stays effective.
Relief Money Transfers Abroad and Limit Increased to Rs 10 Lakh Without TCS
If you send money abroad for children’s education, family expenses, or any other reason, then there is good news for you from now.
Before, TCS had to be paid on sending an amount exceeding Rs 7 lakh, but now this limit has been augmented to Rs 10 lakh.
Not only this, if the money is being sent via an education loan, then no TCS will be charged on it. This will deliver relief to the students studying abroad and their parents.
TDS/TCS will Not be Deducted for Non-filers of Tax Returns
If an individual till now has not submitted the ITR, then TDS/TCS is deducted from him at a higher rate.
It has been offered to eliminate the same provisions in Budget 2025 so that now common taxpayers and small businessmen shall provide relief from unnecessary high tax rates.
No Required to Deduct TCS up to 50Lakh
If you do the business and have big sales, then you shall not be required to deduct 0.1% TCS on sales surpassing Rs 50 lakh.
The same rule from 1st April 2025 will be abolished, which shall provide effective cash flow to the businessmen and facilitate tax compliance.
No Punishment and Fine for Delays Deposit TCS
If an individual till now has not deposited the TCS amount to the government within the specified time, then he has to suffer the punishment and fine varying from 3 months to 7 years.
The same rule has been amended in Budget 2025 so that if the outstanding TCS is deposited within the said time, then there shall be no statutory action.
Closure
- For the common taxpayers, employed people, and businessmen, the budget has brought many relief news.
- New tax compliance shall be simpler, the hassles of unnecessary tax deductions shall be lessened, and cash flow shall be rectified for traders.
- The students who are studying abroad are been provided with relief which shall ease their education expenses load.
- Comprehensively budget 2025 could prove to be a big step for easing and rationalizing tax rules.
