The Income Tax Bill 2025 introduces several changes to India’s tax deduction and collection system, making compliance easier for businesses and individuals. One of its most significant changes is the simplification of TDS (Tax Deducted at Source) and TCS (Tax Collected at Source) regulations. However, before we discuss the relief the taxpayers received in the 2025 Budget, let’s first understand the structural changes made and their purposes. Complex to Comprehensible The existing Income Tax Act had over three and a half dozen sections related to TDS and TCS, creating confusion with multiple thresholds, rates, and conditions. The new bill has consolidated these into just 13 sections, providing much-needed clarity. The restructuring includes: This reform aims to reduce tax complexities, improve compliance, and prevent tax leakages. Experts believe that the move will enhance efficiency and bring greater transparency to the tax system. Now, let’s explore the TDS and TCS benefits introduced in the 2025 Budget. CA Ashish Niraj, Partner, ASN Company, Chartered Accountants, says: “However, if the foreign remittance is for an education loan through a recognised financial institution, then TCS is reduced to nil.” Impact of Income Tax Bill Changes on Individuals For salaried employees, the revised TDS and TCS structure will not affect how tax is deducted from salaries. Employers will continue to deduct TDS as per existing rules. For businesses and professionals, compliance will become easier as the new I-T Bill consolidates all TDS rates into a simplified structure, reducing the number of sections to navigate. For investors and taxpayers, the new structure will make it easier to understand tax liabilities. Final Takeaway The Income Tax Bill 2025 does not change TDS tax rates but focuses on simplifying compliance. With fewer sections and a structured tabular format, taxpayers and professionals will find it easier to manage TDS and TCS.Original Article