The government has announced to change the way TDS on the earnings made on winning lottery and horse race. It was announced on 1 February in the union budget. Now TDS will be deducted on every transaction of more than Rs 10,000 instead of the annual limit. Earlier, when the amount won from lottery and horsepower in a financial year, TDS was deducted. Now if there is more than Rs 10,000 income on winning lottery and horsepower race, then every income will have TDS.
Trying to make TDS rules easier
Income Tax Act (Income tax act) TDS on winning lottery and horse race under section 194B (Tds) The rule of applies. This change in the rules is being seen as the government’s effort to make the tax system easier. The government wants to increase transparency and compliance by making tax rules easier.
Tax evasion cases will decrease
The budget announced a change in the rules for installing TDS and TCS in several categories. These include mutual funds, dividends and commissions. Changes in TDS rules on income from lottery and horse race will deduct TDS on more than Rs 10,000 income during a financial year. This means that now TDS will be deducted more often than before. There will be a decrease in tax evasion cases due to tax collection upfront.
TCS new rules on education remedies
In the budget presented on 1 February, the limit for TCS has been extended on Remittens under the Liberalized Remittance Scheme (LRS). It has been increased from Rs 7 lakh to Rs 10 lakh. However, TCS has been removed from the loan taken from the loan taken from the loan taken abroad for education. If you send money abroad for loan education, then an amount of more than 7 lakh rupees will come under the purview of 5 % TCS. The first rule of TCS will be applicable for sending foreign money for treatment.
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People will benefit from new rules
The TCS rule will be applicable for sending money for investment, gifts and other works abroad. However, 20 percent TCS will be charged only on the amount of more than Rs 7 lakh. Tax experts say that the government has removed TCS for sending loans money taken from financial education for education abroad, which is welcome step. This will give a lot of relief to the people who increase abroad.