These focus on senior citizens, investors and commission earners. The purpose of these changes is to simplify the tax process for taxpayers and businessmen by removing difficult things. Let us see how these changes will benefit different categories.

Income

Senior citizens will now be exempted from TDS on interest income of up to Rs 1 lakh per year, which is much higher than the previous limit of Rs 50,000. Meanwhile, the TDS exemption limit for general citizens has been increased from Rs 40,000 to Rs 50,000. This also includes interest income earned from fixed deposits (FDs) and recurring deposits (RDs) and other such options.

Tax

Senior citizens can now avail tax exemption of up to Rs 15,000 depending on their tax bracket. Apart from this, the limit of TDS exemption on rental income has been increased from Rs 2.4 lakh to Rs 6 lakh per annum or Rs 50,000 per month. Whereas the previous limit was Rs 20,000 per month.

Stocks and Mutual Funds

Investors in stocks and mutual funds will also benefit from the increased TDS exemption on dividends and income from mutual fund units or specified companies, which has been raised from Rs 5,000 to Rs 10,000. Apart from this, individuals involved in cross-border transactions (i.e. transactions between two countries) will benefit from the changed TCS limit under the Liberalised Remittance Scheme (LRS), which has been raised from Rs 7 lakh to Rs 10 lakh. Meanwhile, education loans obtained from certain institutions will now be exempt from TCS at all.

Lottery

The government has also increased the TDS limit for income from lotteries, crossword puzzles and horse races. It is now more than Rs 10,000 per annum. Under the previous rules, TDS was applicable when the total winnings exceeded Rs 10,000 per annum, even if received in several smaller amounts. With the new rules, TDS will be deducted only when a single transaction exceeds Rs 10,000.

Insurance and Brokerage Commissions

Budget 2025 has increased the TDS limit for various commissions, providing relief to insurance agents and brokers. The TDS limit for insurance commission has been increased from Rs 15,000 to Rs 20,000, which will be effective from April 1, 2025. These changes are aimed at simplifying compliance requirements and improving cash flow for small income earners in these industries.

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The post New Rules From 1st April: New tax rules are being implemented from April 1, so it is important to read it now first appeared on Rightsofemployees.com.

Last year, a late fine of Rs 500 was imposed from April 1, which was later increased to Rs 1,000 from July 1. Apart from this, PAN will become inactive if it is not linked with Aadhaar before June 30 this year. If the PAN card becomes inactive then all the financial work will stop.

Given enough time

During a press conference on Thursday, the Union Finance Minister said that PAN card should have been linked with Aadhaar. A lot of time has already been given by the government to do this work. He said that if this deadline expires, the amount of the fine will increase. According to a Finance Ministry statement issued on March 28, anyone having a PAN will have to link it with Aadhaar or face consequences, which include TDS and TCS deductions.

Link will have to be done by June 30

According to the statement, under the provisions of the Income Tax Act, 1961 (‘Act’), every person who has been allotted PAN as on July 1, 2017 and is eligible to obtain an Aadhaar number, is required to link his Aadhaar. Earlier the date of linking it was 31 March 2023. PAN could be linked to Aadhaar with a fine of Rs 1,000. Now its date has been extended again. Now PAN can be linked with Aadhaar till June 30. If taxpayers do not link their Aadhaar before July 1, 2023, then the PAN card will become inactive.

The post Pan Aadhaar Link: Big News! Pan card will be canceled after so many days if not linked to Aadhaar first appeared on Rightsofemployees.com.