Union Finance Minister Nirmala Sitharaman announced relief for middle classes too today as part of the government’s efforts to soften the blow of coronavirus. To allow people more cash in hand, the government has offered a 25 per cent reduction in TDS (Tax Deduction at Source) for non-salaried specified payments and TCS (Tax Collection at Source) for specified receipts, Ms Sitharaman said while announcing the contours of the 20 lakh crore financial package announced by Prime Minister Narendra Modi yesterday to counter the huge financial cost of the coronavirus.
This will apply to payment for contract, professional fees, interest, rent, dividend, commission, brokerage, the minister said.
The measure will come into force tomorrow and last till the end of the financial year – March 2021 and allow a liquidity of Rs 50,000 crore in the market.
As part of other direct tax measures, all pending refunds to charitable trusts and non- corporate businesses and professions including proprietorship, partnership, LLP and Co-operatives shall be issued immediately, the government said.
Due date of all income-tax return for the financial year 2019-20 will be extended from July 31, 2020 an October 31, 2020 to November 30, 2020 and Tax audit from September 30, 2020 to October 31, 2020.
The date of assessments getting barred on September 30, 2020 will be extended to December 31, 2020 and those getting barred on 31st March,2021 will be extended to 30th September,2021.
The period of “Vivad se Vishwas” Scheme for making payment without additional amount will be extended to 31st December,2020.
In the first of her several addresses to outline the contours of the package, Ms Sitharaman announced 15 different measures today, which involved MSMEs, NBFCs (Non-Bank Financial Companies), Provident Fund, Real Estate and Taxation.