Major changes in TDS and TCS
Many reforms have been made in the rates of TDS and TCS in this budget, which will have a positive impact on your salary. Earlier, 5% TCS was levied on study or medical expenses abroad, now it has been reduced to 2%. Similarly, earlier TCS on foreign tours and packages was 5% or 20%, which will now be only 2%. Small taxpayers will now get the option to take rule-based reduced or nil TDS and will not need to apply to the Assessing Officer. This means that the amount of tax that was earlier deducted from your pocket will now be less and the burden of expenditure will be a little lighter.