GUWAHATI: The Union Budget for 2025-26 has introduced several measures to rationalise the tax deduction at source (TDS) system and provide relief to small taxpayers and senior citizens. The government is streamlining TDS by reducing the number of rates and thresholds above which TDS is deducted.
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A key proposal is the doubling of the limit for tax deduction on interest for senior citizens, increasing it from ₹50,000 to ₹1,00,000. This move is expected to significantly benefit senior citizens relying on interest income.
The budget also raises the annual limit for TDS on rent from ₹2.40 lakh to ₹6 lakh. This adjustment will benefit small taxpayers receiving smaller rental payments, reducing their compliance burden.
Furthermore, the threshold for collecting Tax Collected at Source (TCS) on remittances under the RBI's Liberalised Remittance Scheme (LRS) has been increased from ₹7 lakh to ₹10 lakh. This change is likely to simplify the process for individuals making foreign remittances.