TDS/TCS Rate Reduction and Due date of all Income Tax Return extension under Self-Reliant India Movement Package

TDS/TCS Rate Reduction and Due date of all Income Tax Return extension under Self-Reliant India Movement Package

आत्मनिर्भर भारत अभियान पैकेज Self-Reliant India Movement Package

Tax related measures

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

Reduction in Rates of ‘Tax Deduction at Source’ and ‘Tax Collected at Source” – The TDS rates for all non-salaried payment to residents, and tax collected at source rate will be reduced by 25 percent of the specified rates for the remaining period of FY 20-21.This will provided liquidity to the tune of Rs 50,000 Crore.

• 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 1.e. from tomorrow to 31% March, 2021.
• This measure will release Liquidity of Rs. 50,000 crore.

Other Direct Tax Measures – Extension of due date of Income Tax Returns

The due date of all Income Tax Returns for Assessment Year 2020-21 will be extended to 30 November, 2020.  Similarly, tax audit due date will be extended to 31 October 2020.

• 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 30″ September, 2020 to 31st October,2020.

The date for making payment without additional amount under the “Vivad Se Vishwas” scheme will be extended to 31 December, 2020.

• 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.

Source: Self Reliant India Movement Package PPT

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