Budget 2026: TDS, TCS Rule Changes Benefit Taxpayers
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Moneycontrol•27-01-2026, 19:21
Budget 2026: TDS, TCS Rule Changes Benefit Taxpayers
- •House rent TDS rules under Section 194-I changed from FY26: TDS applies if monthly rent exceeds Rs 50,000, regardless of annual amount.
- •TDS-free house rent limit increased from Rs 2.4 lakh to Rs 6 lakh, benefiting landlords with higher monthly rent receipts without TDS.
- •TDS rate for individuals/HUFs not under tax audit (Section 194-IB) reduced from 5% to 2%, providing relief to landlords.
- •TCS rules for education abroad simplified from FY26: 5% TCS on self-funded amounts exceeding Rs 10 lakh; no TCS on education loans from recognized institutions.
- •Taxpayers can set off TCS amounts against salary tax or other income, improving liquidity and reducing upfront tax outflow.
Why It Matters: Recent Union Budget changes to TDS and TCS rules offer significant benefits, simplifying compliance and increasing liquidity for taxpayers.
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