As of April 1, 2026, the Indian government has implemented crucial changes to the tax deducted at source (TDS) and tax collected at source (TCS) regulations. These reforms are designed to simplify tax processes and reduce the financial burden on taxpayers, particularly non-resident Indians (NRIs), international students, and travelers. The TCS rate on foreign remittances and overseas travel expenses has been slashed from 5% to 2%, providing significant relief to those making international transactions. Additionally, property transactions involving NRIs will become easier as buyers will no longer need a tax deduction account number (TAN) starting October 1, 2026; a Permanent Account Number (PAN) will suffice. Furthermore, a new unified Form 121 has replaced the previous Form 15G and Form 15H, streamlining the process for small investors to avoid TDS deductions if their tax liability is nil. The basic exemption limit under the new tax regime has also been raised to ₹4,00,000 for all individuals, further easing the tax burden.