The Centre in the Budget announced many important changes related to tax, especially to make TDS and TCS easy and simple. The purpose of these changes – which will be effective from April 1, 2025 – is to make tax compliance easier for common taxpayers and traders and eliminate unnecessary complexities.

These changes will ensure taxpayers do not face the hassles of tax deduction and collection like before on sending money abroad, making big purchases or business transactions. Let us know what special changes have been made in the budget this time.

  1. New limits of TDS

When you earn interest from the bank, pay rent or make any big payment, TDS is deducted after a certain limit. In this budget, it has been proposed to rationalize these limits, so that you do not have to face unnecessary tax deduction again and again and the cash flow remains better.

  1. Relief on sending money abroad: Now up to Rs 10 lakh without TCS instead of Rs 7 lakh

If you send money abroad for children’s education, family expenses or any other reason, then now there is relief news for you.

Earlier, TCS had to be paid on sending an amount of more than Rs 7 lakh, but now this limit has been increased to Rs 10 lakh.

Not only this, if the money is being sent through education loan, then no TCS will be levied on it. This will give great relief to the students studying abroad and their parents.

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  1. Good news for traders: TCS abolished on sales of more than Rs 50 lakh

If you do business and have big sales, then now you will not need to deduct 0.1% TCS on sales above Rs 50 lakh.

From April 1, 2025, this rule will be completely abolished, which will give better cash flow to the businessmen and ease tax compliance.

  1. Now more TDS / TCS will not be deducted for those who do not file tax returns

Till now, if a person did not file Income Tax Return (ITR), then TDS / TCS was deducted from him at a higher rate.

It has been proposed to remove this provision in Budget 2025, so that now common taxpayers and small businessmen will get relief from unnecessary high tax rates.

  1. No more fear of jail for delay in depositing TCS

Till now, if a person did not deposit the amount of TCS to the government on time, he had to face punishment and fine ranging from 3 months to 7 years.

Now this rule has been amended in Budget 2025, so that if the outstanding TCS is deposited within the stipulated time, then there will be no legal action.

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Conclusion:

This time the budget has brought many relief news for common taxpayers, employed people and businessmen.

Now tax compliance will be easier, the hassles of unnecessary tax deductions will be reduced and cash flow will improve for traders.

Big relief has also been given to students studying abroad, which will reduce the burden of education expenses.

Overall, Budget 2025 can prove to be a big step towards simplifying and rationalizing tax rules.