TDS For Senior Citizens Increased From Rs 50,000 To Rs 1,00,000, Says Sitharaman
Sitharaman also said that the annual limit on rent has been raised to 6 lakh for TDS for senior citizens during her Budget 2025 speech in the parliament
Union Finance Minister Nirmala Sitharaman announced that the TDS deduction for senior citizens has been increased from Rs 50,000 to Rs 1,00,000 in the budget 2025-26. Sitharaman also said that the annual limit on rent has been raised to 6 lakh for TDS for senior citizens during her Budget 2025 speech in the parliament.
FM Nirmala Sitharaman, said "I propose to rationalise tax deductions at source (TDS) by reducing the number of rates and thresholds about which TDS is deductible. Further, threshold amounts for tax deduction will be increased for better clarity and uniformity. The limit for tax deduction on interest for senior citizens is being doubled from the present Rs 50,000 to Rs 1,00,000."
The Finance Minister announced that the annual limit for TDS on rent will be raised from Rs 2.40 lakh to Rs 6 lakh. She explained that this increase will reduce the number of transactions subject to TDS, thereby benefiting small taxpayers receiving smaller payments. "This will reduce, this will reduce the number of transactions liable to TDS, thus benefiting small tax payers receiving small payments", she said.
She further added, "The threshold to collect tax at source (TCS) on remittances under RBI’s Liberalized Remittance Scheme (LRS) is proposed to be increased from Rs 7 lakh to Rs 10 lakh. I also propose to remove TCS on remittances for education purposes, where such remittance is out of a loan taken from a specified financial institution.Both TDS and TCS are being applied on any transaction relating to sale of goods. To prevent such compliance difficulties, I propose to omit the TCS. I also propose that the provisions of the higher TDS deduction will now apply only in non-PAN cases."
In July 2024, the delay for payment of TDS up to the due date of filing the statement was decriminalised. "I propose to provide the same relaxation to TCS provisions as well," she said.
Trending News
Top Headlines
