What are the changes in TDS from 1st April 2025?

How do I avoid 20% tcs on foreign remittance?

To avoid the 20% TCS on foreign remittances, make sure your total remittances do not exceed Rs. 10,00,000 in a financial year. Also, choose the correct transfer purpose code, as some categories like education funded by specified loans and medical treatments have lower TCS rates (5% or nil).

What are the new changes in TCS and TDS?

TCS, TDS: Changes introduced in Budget 2025

Under the new provisions, senior citizens will be exempt from TDS on interest income up to ₹1 lakh per year, an increase from the previous limit of ₹50,000. The TDS exemption limit has been raised from ₹40,000 to ₹50,000 for other individuals.

Who is eligible for 2% TDS?

Rate of TDS : TDS is to be deducted at the rate of 2 percent on payments made to the supplier of taxable goods and/or services, where the total value of such supply, under an individual contract, exceeds two lakh ifty thousand rupees.

What are the new banking rules from April 2025?

Minimum Balance Rules Become Stricter

From April 2025, several public and private banks will increase the required minimum balance for savings accounts. For customers in urban areas, the new minimum monthly balance will be ₹5,000, while for rural areas, it will be ₹1,000.

What are the common mistakes in TDS?

TDS Filing Software: Avoid These 7 Common Mistakes for Accuracy

• Using Outdated or Non-Compliant TDS Filing Software. ...
• Wrong PAN, TAN, or Section Mapping During Data Entry. ...
• Delayed Payment or Late Return Filing. ...
• Challan Errors or OLTAS Mismatch. ...
• Missing or Late Generation of Form 16 / 16A.

How to avoid 20% tcs?

You can transfer money abroad using your international credit card to avoid the 20% TCS on Foreign Remittances. These transactions do not fall under the Liberalised Remittance Scheme (LRS), making them exempt from TCS. This exemption applies as long as the amount does not exceed INR 7 lakh in a financial year.

How much TDS is deducted on a 70,000 salary?

TDS on Salary would be deducted @ 9.56%. Therefore TDS on Salary would be 9.56% of Rs. 70,000 i.e. Rs.

What are the changes from April 1 2025 in GST?

Effective April 1, 2025, businesses with an Annual Aggregate Turnover (AATO) exceeding ₹10 crore must report B2B e-invoices to the IRP within 30 days from the invoice date. Previously, this rule applied only to taxpayers with AATO above ₹100 crore.

What changes are coming in April 2025?

Enhanced tax return requirements will be introduced from April 6 and will apply for tax returns for 2025/2026 going forward. The voluntary requirement for taxpayers who start or cease to trade to report the date of commencement / cessation on their tax return will become a mandatory requirement.

What are the changes in TDS in Budget 2025?

Enhanced Threshold Limits For TDS

With effect from April 1, 2025, the threshold limits for a few sections have been increased from their previous limits. 194B - Winnings from lottery, crossword puzzle Etc. 50,000 per month or 6,00,000 lacs in the financial year.

How is TDS calculated on salary?

What is the formula that is used to calculate TDS? The formula to calculate TDS is Average Income Tax Rate = Income Tax Payable (computed with slab rates) / Estimated income for the financial year.

What are the ATM charges from 1 April 2025?

The key aspects of the RBI's revised policy are as follows: Effective Date: May 1, 2025. Previous Charge: ₹21 per transaction beyond free limits. New Charge: ₹23 per transaction beyond free limits.

Can I withdraw 5 lakhs from a bank in a day?

Yes! You can withdraw Rs. 5 lakh cash from your bank 💰🏦 Know rules & TDS details on Forum 👉 https://www.nobroker.in/forum/can-i-withdraw-5- lakh-cash-from-bank- 2/?

What is the new tax regime 2025?

For FY 2025–26, the new tax regime effectively makes income up to ₹12 lakh tax-free due to the enhanced rebate of ₹60,000. In addition, a standard deduction of ₹75,000 is available for salaried individuals, making a salary income of up to ₹12.75 lakh effectively tax-free.

What are the new TDS rules?

New TDS Provision for FY 2024-2025

A new TDS provision will be applicable on payments made by firms to partners effective April 1st, 2025. A firm shall deduct TDS @ 10% from salary, commission, bonus, or interest exceeding Rs. 20,000 paid to a partner in a financial year under section 194.

How to avoid TDS on cash withdrawal?

This means that if you have not filed your ITR for the last 3 years, TDS @2% will be deducted on cash withdrawals exceeding Rs. 20 lakhs instead of Rs. 1 crore. If you frequently withdraw large sums of cash, filing your Income Tax Return (ITR) can help you avoid unnecessary TDS deductions under Section 194N.

How much income is TDS free?

TDS shall be deducted by every person responsible for paying any income chargeable to tax under the head “Salaries”. As per Section 192, TDS shall be deducted at the time of actual payment of salary. No tax needs to be deducted if the taxable income of the employee does not exceed Rs. 2.5 Lakhs.

What is the TDS scheme for 2025?

The following are the changes made in TDS provisions with effect from 1st April, 2025. Section 206AB which added compliance burden for TDS deductors has been removed. The TDS rate for section 194LBC - Income received from investment in securitization trusts for residents has been reduced to 10%.

What is the new process for TDS payment?

Option B: Post logging in to the income tax portal

Step 2: On the Dashboard, under 'e-File' select the option 'e-Pay Tax'. Step 3: On the 'e-Pay Tax' page, click the New Payment option to initiate the online tax payment. Step 4: On the New Payment page, click on 'Proceed' under the window 'Pay TDS'.

How much TDS is deducted on a 60,000 salary?

Here's how TDS is calculated: Annual Income = ₹50,000 x 12 = ₹6,00,000. Tax Liability (as per slabs) = ₹60,000. TDS Deducted Monthly = ₹60,000 / 12 = ₹5,000.