With reference to the recent amendments introduced in the Union Budget 2025 regarding Tax Collected at Source (TCS) and Tax Deducted at Source (TDS), consider the following statements:
1. TCS is a tax collected by the seller from the buyer at the time of sale of specified goods.
2. The Union Budget 2025 has decriminalized delays in TCS payments, provided the tax is deposited before the due date for filing the quarterly TCS statement.
3. The Budget 2025 has increased the threshold limit for TDS on interest income for senior citizens from ₹50,000 to ₹1 lakh.

Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 only
(d) 1, 2 and 3

Question

With reference to the recent amendments introduced in the Union Budget 2025 regarding Tax Collected at Source (TCS) and Tax Deducted at Source (TDS), consider the following statements:
1. TCS is a tax collected by the seller from the buyer at the time of sale of specified goods.​
2. The Union Budget 2025 has decriminalized delays in TCS payments, provided the tax is deposited before the due date for filing the quarterly TCS statement.
3. The Budget 2025 has increased the threshold limit for TDS on interest income for senior citizens from ₹50,000 to ₹1 lakh.

Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 only
(d) 1, 2 and 3

ONLiNE UPSC · Accepted Answer

Statement 1 is correct: Tax Collected at Source (TCS) is a tax collected by the seller from the buyer at the time of sale of specified goods. The seller is responsible for collecting this tax and remitting it to the government.​

Statement 2 is correct: The Union Budget 2025 proposed an amendment to Section 276BB of the Income Tax Act, decriminalizing delays in TCS payments, provided the tax is deposited before the due date for filing the quarterly TCS statement.

Statement 3 is correct: The Budget 2025 increased the threshold limit for Tax Deducted at Source (TDS) on interest income for senior citizens from ₹50,000 to ₹1 lakh, providing relief to senior citizen taxpayers. ​

Union Budget 2025 Amendments

Tax Collected at Source (TCS) and Tax Deducted at Source (TDS)

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M Question 1	⏱ 0
With reference to the recent amendments introduced in the Union Budget 2025 regarding Tax Collected at Source (TCS) and Tax Deducted at Source (TDS), consider the following statements: 1. TCS is a tax collected by the seller from the buyer at the time of sale of specified goods. 2. The Union Budget 2025 has decriminalized delays in TCS payments, provided the tax is deposited before the due date for filing the quarterly TCS statement. 3. The Budget 2025 has increased the threshold limit for TDS on interest income for senior citizens from ₹50,000 to ₹1 lakh. Which of the statements given above is/are correct? (a) 1 and 2 only (b) 2 and 3 only (c) 1 only (d) 1, 2 and 3