Tax deduction on curiosity for senior residents doubled from Rs 50,000 to Rs 1 lakh – Firstpost

Finance Minister Nirmala Sitharaman on Saturday mentioned tax deductions at supply (TDS) shall be rationalised for senior residents and doubled from Rs 50,000 to Rs 1 lakh.

“I suggest to rationalise tax deductions at supply (TDS) by decreasing the variety of charges and thresholds about which TDS is deductible. Additional, threshold quantities for tax deduction shall be elevated for higher readability and uniformity. The restrict for tax deduction on curiosity for senior residents is being doubled from the current Rs 50,000 to Rs 1,00,000,” mentioned Sitharaman as she introduced
Union Price range 2025.

Sitharaman additionally mentioned that the annual restrict on hire has been raised to six lakh for TDS for senior residents throughout her Price range 2025 speech in Parliament.

She defined that this enhance will cut back the variety of transactions topic to TDS, thereby benefiting small taxpayers receiving smaller funds.

“This can cut back, this may cut back the variety of transactions liable to TDS, thus benefiting small tax payers receiving small funds”, she mentioned.

She additional added, “The edge to gather tax at supply (TCS) on remittances below RBI’s Liberalized Remittance Scheme (LRS) is proposed to be elevated from Rs 7 lakh to Rs 10 lakh. I additionally suggest to take away TCS on remittances for training functions, the place such remittance is out of a mortgage taken from a specified monetary establishment.Each TDS and TCS are being utilized on any transaction referring to sale of products. To stop such compliance difficulties, I suggest to omit the TCS. I additionally suggest that the provisions of the upper TDS deduction will now apply solely in non-PAN circumstances.”

Sitharaman on Saturday made historical past as she introduced a document eighth consecutive funds, which comes within the backdrop of slowdown in economic system and demand for tax cuts for center class.

This can take Sitharaman nearer to the document of 10 budgets that had been introduced by former Prime Minister Morarji Desai over completely different time durations.

Desai has introduced a complete of 6 budgets throughout his tenure as finance minister from 1959 to 1964, and 4 budgets between 1967 and 1969.

With inputs from businesses