TDS, IT Return & Other Tax Reliefs Announcments Due to Covid-19

The last date to file income tax returns for the financial year 2019-20 has been extended till November 30. Apart from this, it has been announced to give the benefit of 25% reduction in TDS and TCS rate to non-salaried people.

Finance Minister Nirmala Sitharaman, while giving information about the first installment of the Rs 20 lakh crore package announced under the ‘Self-reliant India Campaign’, has given a big relief to people in income tax on Wednesday.

Rs 50,000 crores liquidity through TDS/TCS rate reduction

  •  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. • 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 2020-21 i.e. from tomorrow to 31st March, 2021.
  • This measure will release Liquidity of Rs. 50,000 crore.

Other Direct Tax Measures

  • All pending refunds to charitable trusts and non-corporate businesses & professions including proprietorship, partnership, LLP and Co-operatives shall be issued immediately.
  • Due date of all income-tax return for FY 2019-20 will be extended from 31st July, 2020 & 31st October, 2020 to 30th November, 2020 and Tax audit from 30th September, 2020 to 31st October,2020.

Other Direct Tax Measures

  • Date of assessments getting barred on 30th September,2020 extended to 31st December,2020 and those getting barred on 31st March,2021 will be extended to 30th September,2021.
  • Period of Vivad se Vishwas Scheme for making payment without additional amount will be extended to 31st December,2020.

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