Hollywood News
Union Budget trims TCS, simplifies TDS to ease burden on taxpayers
The budget made an effort to simplify tax collection by proposing threshold and rate changes in tax collected at source (TCS); This has provided significant relief to overseas travelers, parents of children studying abroad, and those seeking medical treatment.TCS on education and medical referrals has been reduced from 5% to 2%. Foreign tour packages will also attract a rate of 2% instead of 5% (less than 10 lakh rupees) and 20% (more than 10 lakh rupees).
According to BankBazaar CEO Adhil Shetty, this will “relieve previous cash flow pressure and improve affordability”. While the ₹10 lakh threshold remains for education and medical remittances, it has been removed for foreign tour packages. For example, a family spending ₹15 lakh on a foreign holiday would earlier pay ₹3 lakh (20%) as TCS, which now comes down to ₹30,000. Similarly, if the spend was ₹8 lakh, TCS would be ₹40,000 (5%) compared to just ₹16,000 currently.
Another major change affects property transactions where resident Indians purchase from non-residents. Resident buyers can now deduct TDS on purchasing real estate from non-residents using only their PAN-based challans, without the need for a separate tax deduction and collection account number (TAN). This relaxation is applicable to settled individuals and Hindu Undivided Families, who were earlier required to obtain TAN even for a one-time property transaction.
According to BankBazaar CEO Adhil Shetty, this will “relieve previous cash flow pressure and improve affordability”. While the ₹10 lakh threshold remains for education and medical remittances, it has been removed for foreign tour packages. For example, a family spending ₹15 lakh on a foreign holiday would earlier pay ₹3 lakh (20%) as TCS, which now comes down to ₹30,000. Similarly, if the spend was ₹8 lakh, TCS would be ₹40,000 (5%) compared to just ₹16,000 currently.
Another major change affects property transactions where resident Indians purchase from non-residents. Resident buyers can now deduct TDS on purchasing real estate from non-residents using only their PAN-based challans, without the need for a separate tax deduction and collection account number (TAN). This relaxation is applicable to settled individuals and Hindu Undivided Families, who were earlier required to obtain TAN even for a one-time property transaction.
