For years, international investors have felt like they were left out of the conversation when it came to India’s tax policies. After years of wrestling with complicated tax rules, Budget 2025 has brought some welcome changes. Seems like Nirmala Tai has finally listened to our prayers. Budget 2025 has brought some welcome changes for those of us looking to invest internationally.
Here’s what’s changed:
1. TCS Threshold Raised: More Room to Invest
If you’ve been cautious about sending more money abroad due to high tax deductions, good news: the TCS threshold has been increased from ₹7 lakh to ₹10 lakh. This means you can now invest abroad with higher amounts without being slapped with the 20% upfront tax. Basically, it means we can now make foreign investments a bigger part of our portfolios without worrying so much about getting taxed right away. It really opens up the door to diversifying globally, which is something a lot of us have been wanting to do.
2. No Criminalization for TCS Payment Delays
A tax change that’ll ease the compliance burden: Delays in TCS payments won’t be criminalized anymore, as long as the payment is made before the filing deadline. If you’ve ever been caught in the web of minor delays, this offers some much-needed breathing room.
These changes definitely feel like a step forward for international investors. But are they enough? What else needs to be addressed to make global investing more accessible and attractive? Are there any specific areas you’re hoping to see improvements in?
What’s your take on these budget updates? Are there any other updates on international investments from the budget that I might have missed?