Jobaaj Stories
In the 2025 income tax reforms, the government has introduced key measures to benefit the middle class while rationalizing the tax deducted at source (TDS) and tax collected at source (TCS) regime. The new bill retains nearly half of the existing provisions but brings in significant changes aimed at easing the tax burden on individuals.
The TDS threshold limit on rent has been increased to ₹6 lakh, helping renters with lower tax deductions. Additionally, the TCS threshold on Liberalized Remittance Scheme (LRS) remittances has been raised from ₹7 lakh to ₹10 lakh, making it easier for individuals to remit funds abroad without facing excessive taxation.
Another notable change is the removal of TCS on education loans up to ₹10 lakh from specified financial institutions. This reform will make education loans more affordable for students and their families, ensuring that they are not burdened with additional tax costs.
These changes are part of the government’s continued focus on providing tax relief to the middle class, promoting ease of living and economic growth.
Also Read: Key Takeaways from Union Budget 2025
