Budget 2025: Tax Reforms for Middle-class taxpayers

The Finance Minister is presenting 8th Union Budget 2025, and has announced several reforms for the middle class taxpayers, some of which are:

1. TDS Rationalization: The government will streamline Tax Deducted at Source (TDS) by lowering the number of rates and thresholds, making the procedure more user-friendly.
2. Increase Threshold for LRS: The government has hiked the threshold limit for Tax Collected at Source (TCS) on the Liberalized Remittance Scheme to ₹10 Lakh from ₹7 Lakh.
3. Higher threshold for TDS on Rent: The government has announced an increase in threshold on rent payments to ₹6 Lakh, providing relief to individual taxpayers and businesses dealing with rental income.
4. Exemption on Education Loans: The budget has proposed to remove TCS on education loans upto Rs 10 Lakh from specified financial institutions, easing the tax structure for students and their families.

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