TDS, TCS Rates Reduced By 25%, Income Tax Return Deadline Extended To Nov 30, Says FM Nirmala Sitharaman

Citing a major relief to taxpayers of the country, Finance Minister announced a massive 25 per cent deduction in TDS and TCS rates and also extended the deadline for salaried individuals to file Income Tax Return (ITR) by November 30.

(Representative Image/ Getty)

New Delhi: While sharing the blueprint of PM Modi's announcement of mega economic package, Finance Minister Nirmala Sitharaman on Wednesday rolled out slew of reforms to help revive the India's economy which has taken a big hit on the backdrop of Covid-19 outbreak. While addressing a press conference in the national capital, Sitharaman announced series of relaxations for poor, small businesses and taxpayers of the country. Citing a major relief to taxpayers of the country, Finance Minister announced a massive 25 per cent deduction in TDS and TCS  rates and also extended the deadline for salaried individuals to file Income Tax Return (ITR) by November 30.

Government to infuse Rs 50,000 crores liquidity by reducing rates of TDS, for non-salaried specified payments made to residents, and rates of Tax Collection at Source for specified receipts, by 25% of the existing rates. #AatmaNirbharBharatAbhiyan pic.twitter.com/LR1jhG9ovY

— PIB India #StayHome #StaySafe (@PIB_India) May 13, 2020

"The government will infuse Rs 50,000 crores liquidity by reducing rates of TDS, for non-salaried specified payments made to residents, and rates of Tax Collection at Source for specified receipts, by 25 per cent of the existing rates," Sitharaman said. "Due date of all Income-Tax return for FY 2019-20 will be extended from July 31 2020 and October 31, 2020 to November 30, 2020 and tax audit from September 30, 2020 to October 31, 2020," she added.

Among other measures, 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. #AatmaNirbharBharatAbhiyan pic.twitter.com/R4ZWRgss9x

— PIB India #StayHome #StaySafe (@PIB_India) May 13, 2020

While making the announcement, FM Sitharaman also clarified that payment for contract, professional fees, interest, rent, dividend, commission, brokerage etc. shall be eligible for this reduced rate of TDS. As per the Finance Ministry, the reduction in TDS will be applicable for the remaining part of the Financial Year 2020-21 effective from tomorrow (May 14) to March 31, 2021. (This is a developing story. Further details are awaited.)