Tax reduction on passion for seniors increased from Rs 50,000 to Rs 1 lakh

Finance Minister Nirmala Sitharaman on Saturday claimed tax obligation reductions at resource (TDS) will certainly be rationalized for seniors and increased from Rs 50,000 to Rs 1 lakh.

“I propose to rationalise tax deductions at source (TDS) by reducing the number of rates and thresholds about which TDS is deductible. Further, threshold amounts for tax deduction will be increased for better clarity and uniformity. The limit for tax deduction on interest for senior citizens is being doubled from the present Rs 50,000 to Rs 1,00,000,” claimed Sitharaman as she provided
Union Budget 2025.

Sitharaman additionally claimed that the yearly restriction on lease has actually been increased to 6 lakh for TDS for seniors throughout her Budget 2025 speech in Parliament.

She clarified that this rise will certainly lower the variety of deals based on TDS, thus profiting little taxpayers getting smaller sized repayments.

“This will reduce, this will reduce the number of transactions liable to TDS, thus benefiting small tax payers receiving small payments”, she claimed.

She additionally included, “The threshold to collect tax at source (TCS) on remittances under RBI’s Liberalized Remittance Scheme (LRS) is proposed to be increased from Rs 7 lakh to Rs 10 lakh. I also propose to remove TCS on remittances for education purposes, where such remittance is out of a loan taken from a specified financial institution.Both TDS and TCS are being applied on any transaction relating to sale of goods. To prevent such compliance difficulties, I propose to omit the TCS. I also propose that the provisions of the higher TDS deduction will now apply only in non-PAN cases.”

Sitharaman on Saturday made background as she provided a document 8th successive budget plan, which can be found in the background of downturn in economic climate and need for tax obligation cuts for center course.

This will certainly take Sitharaman closer to the document of 10 spending plans that existed by previous Prime Minister Morarji Desai over various period.

Desai has actually provided a total amount of 6 spending plans throughout his period as money preacher from 1959 to 1964, and 4 spending plans in between 1967 and 1969.

With inputs from firms