In the press-conference held earlier today, Finance Minister Nirmala Sitharaman announced that the rates of Tax Deduction at Source (TDS) for non-salaried specified payments made to residents, and rates of Tax Collection at Source (TCS) for the specified receipts shall be reduced by 25% of the existing rates.
PM Modi had announced a package yesterday
PM Narendra Modi, in a message yesterday, announced a relief package worth Rs 20 lakh crores. The money would serve in the country’s fightback against the faltering economy while also, at the same time, this fund would help in India’s combat against Coronavirus.
He further said that details regarding the economic package would be revealed by the Finance Minister. In line with this announcement, Nirmala Sitharaman appeared in front of the media today.
TDS & TCS rates slashed by 25%
To release more funds at the disposal of the taxpayer, a decision has been made to the slash the rates of TDS for non-salaried specified payments made to residents, and TCS for specified receipts by 25%.
Also, the Finance Minister announced that, the payment for contract, professional fees, interest, rent, dividend, commission, brokerage, etc. shall be eligible for this reduced rate of TDS. The reduction would be applicable for the remaining part of the financial year, ie. until March 31st, 2021.
Nirmala Sitharaman also announced that the due date for all income-tax returns would be pushed until the end of November. Earlier, the due date had been set to July 31st. The tax audit date has been extended from 30th September 2020 to 31st October 2020 while the date of assessments getting barred on 30th September will now be extended till 31st December.
Source: Free Press Journal