TDS and TCS will be reduced by 25% of existing rates for
all incomes apart from salary.
Tax return deadline has been extended
till 30 November, 2020
The government on Wednesday announced tax-related
measures like postponing the deadline for filing income tax (I-T) returns and
reducing the tax deducted at source (TDS), in order to ease pressure on the
taxpayers amid the coronavirus pandemic. The measures were detailed upon by
Finance Minister Nirmala Sitharaman at a press conference, a day after Prime
Minister Narendra Modi announced Rs 20 lakh crore economic relief package under
the Atma Nirbhar Bharat Abhiyan. Ms Sitharaman said that the due date for filing
all I-T returns for the financial year 2019-20 have been extended till 30
November, 2020.
Under normal circumstances,
the last date for filing returns for a financial year is July 31 and that with
late fee is October 31.
The government also said it
will reduce the amount of tax to be deducted (TDS) or collected at source (TCS)
by individuals and businesses at the time of transactions to put more money in
their hands.
In this regard, the TDS and
TCS will be reduced by 25 per cent of the existing rates for payment for
contract, professional fees, interest, rent, dividend, commission and brokerage
income. However, this reduction will not be applicable for salaries.
This reduction will come into force from tomorrow and
shall be applicable for the remaining part of the financial year 2020-21, i.e.
March 31, 2020.
The date for the tax audit
was also pushed back by a month -- from September 30, 2020 to October 31, 2020,
the finance minister said. Moreover, the period of "Vivad se Vishwas"
Scheme for making payment without additional amount will be extended to
December 31, 2020.
Ms Sitharaman was addressing
the media to announce the first tranche of schemes under the Rs 20 lakh crore
package. She is expected to hold more such press conferences in the coming days
to address other sectors.
Tags
Economy