TDS/TCS Rates Reduction; Deadline Extensions; Faster Refunds : Tax Measures Announced By FM As COVID-19 Relief

The Union Finance Minister Nirmala Sitharaman announced a slew of tax measures as part of the COVID-19 related economic stimulus package.

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 the 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.

"It will help to Rs 50,000 crores liquidity through TDS/TCS rate reduction", said the Finance Minister.

Entire "Vivad se Vishwas" scheme has been extended till December 31, 2020. No extra payment for this extension will be required.

Tax assessments getting barred on September 30, 2020 are extended till December 30, 2020.

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.

All pending refunds to charitable institutions and non-corporate businesses and professions including proprietorship, partnership, LLPs and Co-operatives will be issued immediately.

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