Budget 2025: Finance Minister Nirmala Sitharaman said that the annual limit of Rs 2.40 lakh for TDS on rent is being increased to Rs 6 lakh.
"This will reduce, this will reduce the number of transactions liable to TDS, thus benefiting small taxpayers receiving small payments", she said.
The Finance Minister also said that the TDS limit for senior citizens on interest has been hiked.
"I propose to rationalize 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 a tax deduction on interest for senior citizens is being doubled from the present Rs 50,000 to Rs 1,00,000."
The government will also be introducing a new Income Tax (I-T) bill in Parliament next week.
Reforms are not destinations but means to achieve good governance for the people and economy, the finance minister said and added that the new I-T bill will be half of the current volume, clear and direct in wording.
Meanwhile, the government will increase the limit of TCS on remittances under RBI's liberalised remittance scheme from Rs 7 lakh to Rs 10 lakh.
Also, Sitharaman said that 35 additional goods for EV battery, 28 additional goods for mobile phone battery production will be included in the list of exempted capital goods.