Boost for Taxpayers: New TDS and TCS Thresholds Announced

Finance Minister Nirmala Sitharaman announced significant increases in thresholds for Tax Deduction at Source (TDS) and Tax Collection at Source (TCS) in her Budget speech. These changes aim to reduce compliance burdens and benefit small taxpayers, particularly senior citizens, with higher interest and rent income limits.

Finance Minister Nirmala Sitharaman unveiled her Budget speech on Friday, proposing notable changes to Tax Deduction at Source (TDS) and Tax Collection at Source (TCS) limits. These modifications are poised to ease the compliance burden on taxpayers, particularly benefiting senior citizens and small rent recipients.

Sitharaman proposed doubling the TDS limit on interest income for senior citizens from Rs 50,000 to Rs 1 lakh. Additionally, for general taxpayers, the TDS on rent threshold will rise from Rs 2.4 lakh to Rs 6 lakh annually, decreasing the transactions subjected to TDS.

In a significant move for international remittances, the threshold for TCS under RBI's Liberalized Remittance Scheme will increase from Rs 7 lakh to Rs 10 lakh. Sitharaman also announced the removal of TCS on education-related remittances funded by loans from specified institutions, further streamlining tax processes.

(With inputs from agencies.)