Rules related to TDS and TCS will change from April 1, know now what is the limit on dividends, rent, and other earnings.

New Delhi: Finance Minister Nirmala Sitharaman presented the Union Budget for the financial year 2025-26 on February 1. During this, she had announced huge relief in income tax to the middle class as well as changes in many rules. Now these rules are coming into effect from April 1, 2025 with the start of their financial year. These amendments also include new rules for tax deduction at source (TDS) and tax collection at source (TCS).

Big relief to senior citizens and landlords

The central government had announced in the budget that the TDS deduction for senior citizens has been doubled. It was earlier Rs 50,000, which has now become Rs 1 lakh. This will give them great relief. At the same time, landlords have also got a big relief. Actually, the limit of TDS deduction on rent income has been increased from Rs 2.4 lakh per financial year to Rs 6 lakh per financial year.

TCS limit increased on foreign transactions

Apart from this, the limit of TCS deduction for RBI's Liberalized Remittance Scheme for people with transactions from abroad has also been increased. Earlier, TCS deduction was done on transactions of Rs 7 lakh across the border, which has been increased to Rs 10 lakh.

TDS removed on education loan

At the same time, TCS deduction on education loans from specific financial institutions has been removed. Earlier, 0.5% TCS was deducted on education loans of more than Rs 7 lakh, while 5 percent TCS was deducted on self-financed education transactions of more than Rs 7 lakh.

This is the limit on earnings from dividends and mutual funds.

Let us tell you that the TDS limit on earnings from dividends has been increased from Rs 5000 to Rs 10,000, while the TDS limit on earnings from mutual funds units has also been increased from Rs 5 5,000 to Rs 10 thousand per financial year. Apart from this, the TDS on rewards has also been increased to Rs 10 thousand per reward.