New TDS and TCS Rules: The government had announced changes in the rules of TCS and TDS in the Union Budget. These new rules will come into effect from April 1. If you live in a rented house or are a landlord, then you need to know the changing rules of TDS. Also, if you get interest on bank deposits, it is important to understand these new rules.

New TDS and TCS Rules:

Finance Minister Nirmala Sitharaman announced changes in some rules of TDS and TCS in the Union Budget presented on February 1. These rules will come into effect from April 1, 2025. The government has taken this step to simplify the rules of TDS and TCS. The government has also changed the limit of TCS and TDS. Senior citizens, landlords, and professionals providing technical services will benefit the most from this. Increasing the TCS limit will also benefit those traveling abroad and those sending money for children's education abroad. Let us know about these rules in detail.

Rules on interest income under new TDS:

According to the new rules, TDS will not be levied on interest income up to ₹ 1 lakh in a financial year for senior citizens. Earlier this limit was ₹ 50,000. This means that if you are a senior citizen and you have deposited money in the bank and you get interest up to ₹ 1 lakh in a financial year, then the bank will not deduct TDS on it. The bank will deduct TDS only when the interest income is more than ₹ 1 lakh. For other individuals, this limit has been increased from ₹ 40,000 to ₹ 50,000.

Rules on rental income under new TDS:

The government has also increased the limit of TDS on rental income. Now this limit has been increased from ₹ 2.4 lakh to ₹ 6 lakh. This means that if you pay rent up to ₹ 50,000 to your landlord every month, then you will not need to deduct TDS on it. Earlier this limit was ₹ 20,000, when the rent was more than this, the tenant had to deduct TDS and pay it to the landlord.

Change in TDS rules - Income from dividend:

The rules of TDS have been changed for investors of shares and mutual funds. Now TDS will be deducted only when the income received from dividends or mutual funds is more than ₹ 10,000. Earlier this limit was ₹ 5,000. Along with this, the limit of TDS on interest received on debentures issued by public companies has also been increased to ₹ 10,000.

Rules for sending money abroad under the new TCS:

The government has also increased the limit of TCS under the Liberalised Remittance Scheme (LRS). Now if a person sends money abroad, TCS will not be levied on an amount up to ₹ 10 lakh. Earlier this limit was ₹ 7 lakh. Apart from this, TCS will not be levied on sending money for education loans taken from some institutions. Earlier 0.5% TCS was levied on education loans of more than ₹ 7 lakh.

These new rules are important for you, so understand them carefully and pay attention so that you can avoid any trouble.