New Delhi: Presenting the Budget 2025-26 in the Lok Sabha, Union Finance Minister Nirmala Sitharaman increased the tax deduction at source (TDS) threshold on rent. The Union Finance Minister today proposed in her speech an increase in the tax threshold on rent to ₹ 6 Lakh from ₹ 2.4 Lakh per annum. 

She also doubles the limit for tax deduction on interest earned by senior citizens from the present ₹ 50,000 to ₹ 1 Lakh. 

Encouraging voluntary compliance, the Budget extends time-limit to file updated returns for any assessment year, from the current limit of two years, to four years.

Over 90 lakh taxpayers paid additional tax to update their income.

Small charitable trusts/institutions have been given the benefit by increasing their period of registration from 5 to 10 years, reducing compliance burden.

Tax payers can now claim annual value of two self-occupied properties as NIL, without any condition.

Giving benefits to senior and very senior citizens, withdrawals made from National Savings Scheme Accounts on or after August 29, 2024 have been exempted. The NPS Vatsalya accounts also to get similar benefits.