Great news for professionals: TDS, TCS rates reduced by 25% for the current Financial Year
Great news for professionals: TDS, TCS rates reduced by 25% for the current Financial Year

Finance Minister Nirmala Sitharaman addressed a press conference on Wednesday a day after PM Modi announced Rs 20 lakh crore worth economic package to support the economy that has been hit hard due to the coronavirus pandemic.

Well, over the next few days, the Finance Ministry will come forward and give details about this mega economic package, Sitharaman said while addressing the media on Wednesday.

In order to provide more funds at the disposal of the taxpayers, 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, said Sitharaman.

Moreover, she said that the payment for contract, professional fees, interest, rent, dividend, commission, brokerage, etc. shall be eligible for this reduced rate of TDS.

This reduction shall be applicable for the remaining part of the FY 2020-21that is from tomorrow to 31st March, 2021.

Sitharaman said that this measure will release liquidity of Rs. 50,000 crore.

In addition to this , Sitharaman announced that the due date for all income-tax returns for FY 2019-20 will be extended till the end of November. This had earlier been extended till July 31 in light of the novel coronavirus outbreak and consequent lockdown.

The tax audit date has been extended from 30th September 2020 to 31st October 2020.

Sitharaman also said that the date of assessments getting barred on 30th September will now be extended till 31st December.

Additionally, the period of the Vivad se Vishwas Scheme for making payment without additional amount will be extended to 31st December, 2020.

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