Finance Minister Nirmala Sitharaman announced TDS rationalisation in the 2025-26 Budget to reduce the compliance burden. The government also plans to introduce a new Income Tax Bill, increase TCS on remittances, and exempt more goods related to EV and mobile phone batteries.
File Pic
Finance Minister Nirmala Sitharaman, in her announcement on Saturday, revealed that the government plans to simplify the Tax Deduction at Source (TDS) regime, aiming to alleviate the compliance burden for taxpayers.
ADVERTISEMENT
Presenting the Budget for 2025-26, Sitharaman stated that the new tax proposals reflect a comprehensive effort to provide income tax reforms for the middle class, rationalise TDS procedures, and enhance the ease of compliance for the public. The move comes in the wake of growing efforts to make taxation more taxpayer-friendly, facilitating greater ease of doing business and managing finances.
According to PTI reports, Sitharaman further informed that a new Income Tax (I-T) Bill will be introduced in Parliament next week, which will aim to streamline the taxation process. The new bill, she added, would be much more concise than its predecessor, with its volume reduced by half. Designed to be simpler and clearer, the proposed bill promises to offer a more direct and user-friendly approach to income taxation.
The minister pointed out that reforms are never seen as an end in themselves but as crucial means to ensure effective governance and spur economic growth. By simplifying the existing tax structures, the government seeks to foster a more transparent and efficient system that can benefit both the economy and the citizens.
PTI reports also highlight that the government is looking to address cross-border remittances by increasing the limit of the Tax Collected at Source (TCS) under the Reserve Bank of India’s liberalised remittance scheme. The current cap of Rs 7 lakh will be raised to Rs 10 lakh, further easing the process for individuals remitting money abroad.
In another key announcement, Sitharaman revealed that the government will include 35 additional goods for electric vehicle (EV) battery production and 28 more goods for mobile phone battery production in the list of exempted capital goods. This move is designed to bolster India’s manufacturing capabilities in the green energy and technology sectors, enabling more cost-effective production in these rapidly expanding industries.
The Finance Minister’s proposals underscore the government’s continued focus on strengthening the tax framework and encouraging growth in emerging sectors like electric vehicles and mobile technology. These reforms are expected to offer significant relief to both businesses and individuals, driving economic development while simplifying tax-related processes for the general public.
As per PTI, Sitharaman’s announcements reflect the government’s broader agenda of fostering a more transparent, streamlined, and growth-oriented economic environment in the coming years. The simplification of tax systems and increased exemptions are a part of the ongoing efforts to make India a more attractive destination for business and investment.
Subscribe today by clicking the link and stay updated with the latest news!" Click here!
