The Union Finance Minister Nirmala Sitharaman announced details of Rs 20 lakh crore economic package in the first installment of three announcements to be made post the national address of Prime Minister Narendra Modi amid coronavirus lockdown. She announced rate cut of 25 percent in tax deducted at source (TDS) and tax collected at source (TCS).
Sitharaman said that the reduction in rate will pour liquidity of Rs 50,000 crore. This will be effective for the remaining part of the current financial year to March 31, 2021.
In the press conference, the Finance Minister stated that payment of contract, professional fees, interest, rent, dividend, commission, brokerage and so on will be eligible for the reduced rate.
Besides, she extended the due date for filing income tax returns (ITR) further from July 31 to November 30.
In addition, the tax assessment getting barred on September 30, 2020 has been extended till December 2020. And, those getting barred on March 31, 2020 has also been extended till September 30, 2021.
Filling for Vivad se Vishwas scheme works in favour of the corporate will also be extended and would enable more taxpayers to take advantage of the scheme.