Finance Minister Nirmala Sitharaman presented the Union Budget for the financial year 2025-26 on 1 February. During this, he announced a lot of change in income tax as well as many rules for the middle class. Now these rules are being implemented from the beginning of its financial year i.e. 1 April 2025. This change also includes tax deduction (TDS) and new Tax collection (TCS) rules at source.
Senior citizens and landlords will get big relief
The central government announced in the budget that TDS deduction for senior citizens has been doubled. Earlier it was 50 thousand rupees, which has now increased to 1 lakh rupees. This will now give them great relief. Along with this, the landlords have also got a big relief. The important thing is that the limit of TDS deduction on rental income is Rs 10,000 per financial year. Increased from 2.4 lakhs to Rs. 6 lakhs per financial year.
TCS limit has been increased on foreign transactions
In addition, the limit of TCS deduction has also been increased under RBI’s liberalized remittance scheme for people who transact from abroad. Before that, Rs. Earlier, TCS was deducted on a transaction of Rs 7 lakh, which was increased to Rs 5 lakh. A provision of Rs 10 lakh has been made.
TDS removed on education loan
TCS deductions on education loans have been removed from specific financial institutions. Earlier, 0.5% TCS was deducted on education loans of more than Rs 7 lakh, while 5% TCS was deducted on educational transactions of more than Rs 7 lakh.
This is the limit of dividend and income from mutual funds.
The TDS limit on dividend income has been increased from Rs 5,000 to Rs 10,000. At the same time, the limit of TDS on income from mutual fund units has also been increased from Rs 5,000 to Rs 10,000 per financial year. Apart from this, TDS has also been increased to Rs 10,000 per prize.
LPG price
Oil companies review LPG prices on the first date of every month, so you may see changes in cylinders prices on the morning of 1 April.
ATF and CNG-PNG rates
On the first date of every month, oil companies also make a slight change in the prices of Air Turbine Fuel (ATF) and CNG-PNG.
