TDS & TCS rationalisation with focus on middle class
The new income tax bill will retain nearly half of the existing provisions and introduce personal income tax reforms with a focus on the middle class. It will also rationalise the tax deducted at source (TDS) and tax collected at source (TCS) regime by reducing the number of rates and adjusting thresholds.
The threshold limit for TCS on LRS remittances has been increased from ₹7 lakh to ₹10 lakh.
The TDS threshold limit on rent has been raised to ₹6 lakh.
It is proposed to remove TCS on education loans up to ₹10 lakh from specified financial institutions.