Budget 2025, Feb. 1 -- Nirmala Sitharaman proposed to rationalise tax collection at source (TCS) during her Budget 2025 speech. The threshold to collect TCS on remittances under RBI's liberalised remittance scheme (LRS) is proposed to be raised from Rs.7 lakh to Rs.10 lakh.

She also proposed to remove TCS on remittances for education purposes, where such remittance is out of a loan taken from a specified financial institution.

Besides, to prevent compliance difficulties, she proposed to omit the TCS on sale of goods. Let us understand what is TCS?

This is an advance tax which is collected at the time of transactions including sale of goods and foreign remittances. Since Budget 2025 has proposed to phase out TCS on the sale of goods, th...