Finance Minister Nirmala Sitharaman unveiled key changes to the Tax Deducted at Source (TDS) and Tax Collected at Source (TCS) regulations in the 2024 budget. These changes aim to streamline tax compliance and broaden the tax base.
Payments made by firms to their partners will now be subject to TDS at 10% for aggregate amounts exceeding ₹20,000 in a financial year. This measure is expected to improve transparency and compliance within partnerships.
Additionally, a 1% TCS will be levied on notified luxury goods valued over ₹10 lakh. This move targets high-value transactions to ensure that luxury consumption contributes fairly to the tax revenue.
For Floating Rate Savings (Taxable) Bonds (FRSB) 2020, TDS will now be imposed on interest income exceeding ₹10,000. This rule will also apply to any other notified security of the Central or State Governments, aiming to ensure consistent taxation across different types of government securities.
These measures are set to take effect immediately, impacting taxpayers and financial entities across the country.
News Desk
