Finance Minister Nirmala Sitharaman announced a change in some rules of TDS and TCS at the Union Budget 2025 presented on 1 February. These rules will be applicable from April 1, 2025. The government has done this to make TDS and TCS rules easier. The government has also changed the limit for TCS and TDS. The most benefit of this will be for senior cities, landlords and professionals providing technical services. Increasing the limit for TCS will benefit people traveling abroad and teaching children abroad. Let’s know about this in detail.
TDS new rules on interest income
According to the new rule, the interest of up to one lakh rupees of senior cities in a financial year Tds Will not come under the purview of Earlier its limit was Rs 50,000. This means that if you are a senior citizen and you get interest on the money deposited in the bank in a financial year, then the bank on it Tds Will not bite The bank will deduct TDS on it only if the interest income is more than Rs 1 lakh. For other people, this limit has been increased from Rs 40,000 to Rs 50,000.
New TDS new rules on home rental
The government has also increased the TDS limit on rental income. It has been increased from Rs 2.4 lakh to Rs 6 lakh annually. This means that if you pay up up to Rs 50,000 to your landlord every month, then you will not need to deduct TDS on it. Right now the tenant has to pay the landlord after deducting TDS on it if the rent is more than Rs 20,000.
TDS on income from dividend
TDS rules have also changed for investors of stock and mutual funds. Now the TDS will be deducted only if the dividend or income from mutual funds units or special companies/undertakings. Right now this limit is Rs 5,000. The TDS limit has also been increased to Rs 10,000 for the interest on debentures issued by a public company.
New TCS rules on sending foreign money
The government has also increased the TCS limit in the case of Liberalized Remittance Scheme (LRS). Now if a person sends money abroad, then the amount of up to Rs 10 lakh will not come under the purview of TCS. Right now this limit is Rs 7 lakh. Apart from this, no TCS will be imposed on sending education loan money taken from certain institutions. Currently, the amount of education loan is more than 0.5 per cent charge if it is more than Rs 7 lakh.