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Nirmala Sitharaman says annual TDS limit on rent to be increased from ₹2.40 lakh to ₹6 lakh in Union Budget 2025
Union Budget 2025 proposes an increase in the annual limit for TDS on rent from ₹2.40 lakh to ₹6 lakh, as announced by Nirmala Sitharaman.
The annual limit for Tax Deducted at Source or TDS on rent will be increased from ₹2.40 lakh to ₹6 lakh, announced finance minister Nirmala Sitharaman while presenting the Union Budget 2025 on Saturday.
Nirmala Sitharaman also announced the extension of the time limit for filing updated returns for any assessment year. The time limit is proposed to be extended from the current two years to four years.
Presenting the 14th consecutive Budget under the Narendra Modi government since 2014, Sitharaman also proposed the exemption of TCS (tax collected at source) for remittances for education purposes in cases where education loan is taken from specified financial institutions.
She added that 33,000 taxpayers have availed Vivad Se Vishwas 2.0 scheme to settle direct tax disputes.
The limit for tax deduction on interest income would be doubled to ₹1 lakh for senior citizens.
Besides, the budget extends the period of incorporation by five years for startups to avail of tax benefits.
She said tax proposals are guided by income tax reforms for the middle class, TDS rationalisation, and easing compliance burden. 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 ₹7 lakh to ₹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.
(With inputs from PTI)
