Big changes in TDS and TCS rules going to happen from April 1, know the detail’s 

Another big news for income tax payers. The Central Government has rolled out some significant changes in the budget regarding taxes, particularly aimed at simplifying TDS and TCS. These updates, set to kick in on April 1, 2025, are designed to make tax compliance a breeze for everyday taxpayers and business owners, cutting out unnecessary hassles.

With these adjustments, taxpayers won’t have to deal with the same headaches over tax deductions and collections when transferring money overseas, making large purchases, or handling business transactions. Let’s dive into the key changes introduced in this budget.

New TDS Limits

When you earn interest, pay rent, or make substantial payments from your bank, TDS gets deducted after reaching a certain threshold. This budget proposes to adjust those limits, so you won’t face repeated tax deductions and can maintain better cash flow.

If you’re sending money abroad for your kids’ education, family needs, or other reasons, there’s good news. The previous TCS threshold for sending over Rs 7 lakh has now been raised to Rs 10 lakh. Plus, if you’re transferring funds through an education loan, TCS won’t apply at all. This is a huge relief for students studying overseas and their families.

Great news for business owners!

If you’re running a business and your sales exceed Rs 50 lakh, you can breathe a sigh of relief. Starting April 1, 2025, you won’t have to worry about the 0.1% TCS deduction on those sales. This change is set to improve cash flow and make tax compliance a lot easier for you.

Also, for those who haven’t been filing tax returns, you won’t face higher TDS/TCS deductions anymore. The 2025 Budget suggests scrapping this rule, which means less stress for regular taxpayers and small business owners who were hit with those steep tax rates.

And here’s another win: no more fear of jail time for late TCS payments. Previously, if you didn’t pay the TCS to the government on time, you could face penalties ranging from 3 months to 7 years in prison, plus fines. But with the new amendments in the 2025 Budget, as long as you pay the outstanding TCS on time, you won’t face any legal trouble.