Relief for salaried individuals on TDS, TCS

A small tinkering with tax slabs and an increase of ₹25,000 in standard deduction in the Budget will most likely fall short of the expectations of salaried individuals.

- SARBAJEET K SEN

However, a few other changes on tax deducted at source (TDS) and tax collected at source (TCS) give some added benefits to the taxpayers.

Lower TDS on rent paid

The Budget has proposed to cut the rate of TDS to 2 per cent from 5 per cent earlier for rents paid in excess of ₹50,000 by an individual or Hindu undivided family (HUF), for a month or part thereof.

Many households, especially those of retired individuals, depend on rental income. They will get more rent in hand.

"The reduction in TDS will be beneficial for property owners renting out their property, especially senior citizens who rely on rental income. They will have better cash flow," said Sudhir Kaushik, co-founder and chief executive officer (CEO), change Taxspanner.com. This becomes effective from October 1, 2024.

Credit for TCS of salaried employees

Along with TDS deduction by employers, salaried individuals also face TCS collected from them under various other transactions.