To provide more funds at the disposal of taxpayers, the government on Wednesday reduced rates of tax deduction at source (TDS) for non-salaried specified payments made to residents by 25 per cent of existing rates.
It also cut rates of tax collection at source (TCS) for specified receipts. Payment for the contract, professional fees, interest, rent, dividend, commission and brokerage shall be eligible for this reduced rate of TDS.
"This reduction will be applicable for the remaining part of FY 2020-21 -- that is from tomorrow to March 31, 2021," said Finance Minister Nirmala Sitharaman on Wednesday.
The measure will release liquidity of Rs 50,000 crore, she added.Sitharaman also announced that the due date of all income-tax return for FY 2019-20 will be extended to November 30 from July 31 and October 31, 2020.
The tax audit deadline has been extended to October 31 from September 30. At the same time, the period for Vivad se Vishwas Scheme for making payment without additional amount has been extended to December 31.
Among other extensions, the date of assessments getting barred on September 30 has now been extended to December 31. Those getting barred on March 31, 2021 will be extended to September 30, 2021.
( With inputs from ANI )