TDS, TCS reduced by 25 per cent: Nirmala Sitharaman
New Delhi : Union Finance Minister Nirmala Sitharaman on Wednesday announced relief for the middle class Indians in accordance to the announcement made by PM Narendra Modi a day earlier. To enable people with more cash in hand, the government has offered a 25 per cent reduction in TDS (Tax Deduction at Source) for non-salaried specified payments and TCS (Tax Collection at Source) for specified receipts.
The announcement is under the financial aid of Rs 20 lakh crore mentioned by PM Narendra Modi during his recent address to the nation.
This will apply to payment for contract, professional fees, interest, rent, dividend, commission, brokerage, the minister said. The measure will come into force tomorrow and last till the end of the financial year -- March 2021 -- and provide a liquidity of Rs 50,000 crore.
As part of other direct tax measures, all pending refunds to charitable trusts and non- corporate businesses and professions including proprietorship, partnership, LLP and Co-operatives shall be issued immediately, the government said.
Due date to file income tax returns for the financial year 2019-20 has also been extended from July 31 and October 31, 2020 to November 30, 2020 and Tax audit from September 30, 2020 to October 31, 2020.
The date of assessments getting barred on September 30, 2020 will be extended to December 31, 2020 and those getting barred on 31st March, 2021 will be extended to September 30, 2021.