Kolkata: Union finance minister Nirmala Sitharaman has announced that the government intends to rationalise Tax Deduction at Source or TDS. It will be done in order to ease compliance burden, the FM has announced. The FM also proposed to raise annual threshold for TDS on rent to Rs 6 lakh its current ceiling of Rs 2.4 lakh.

“I propose to rationalise Tax Deduction at Source (TDS) by reducing the number of rates and thresholds above which TDS is deducted. Further, threshold amounts for tax deduction will be increased for better clarity and uniformity,” the FM said in the Budget speech. A direct beneficiary of this will be small taxpayers receiving small payments, she said. Overall, it will reduce the number of transactions that are amenable to TDS.

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