Govt to Simplify TDS Process to Ease Compliance, Says Sitharaman

Presenting the Budget for 2025-26, she stated that tax proposals are guided by income tax reforms for the middle class, TDS rationalization, and easing the compliance burden.

Finance Minister Nirmala Sitharaman on Saturday announced the rationalization of the TDS (Tax Deduction at Source) regime to ease the compliance burden.

Presenting the Budget for 2025-26, she stated that tax proposals are guided by income tax reforms for the middle class, TDS rationalization, and easing the compliance burden.

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The government will also introduce 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 the economy, the Finance Minister said, adding that the new I-T Bill will be half the size of the current one, with clear and direct wording.

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Meanwhile, the government will increase the limit of TCS (Tax Collected at Source) on remittances under the RBI’s liberalized remittance scheme from ₹7 lakh to ₹10 lakh.

Sitharaman further added that the list of exempted capital goods will be expanded by 35 more goods for EV battery production and 28 more goods for mobile phone battery production.

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