The federal government on Wednesday introduced tax-related measures like suspending the deadline for submitting revenue tax (I-T) returns and lowering the tax deducted at supply (TDS), with the intention to ease strain on the taxpayers amid the coronavirus pandemic. The measures have been detailed upon by Finance Minister Nirmala Sitharaman at a press convention, a day after Prime Minister Narendra Modi introduced Rs 20 lakh crore financial aid package deal beneath the Atma Nirbhar Bharat Abhiyan. Ms Sitharaman mentioned that the due date for submitting all I-T returns for the monetary 12 months 2019-20 have been prolonged until 30 November, 2020.
Below regular circumstances, the final date for submitting returns for a monetary 12 months is July 31 and that with late payment is October 31.
The federal government additionally mentioned it’s going to cut back the quantity of tax to be deducted (TDS) or collected at supply (TCS) by people and companies on the time of transactions to place extra money of their arms.
On this regard, the TDS and TCS shall be lowered by 25 per cent of the present charges for cost for contract, skilled charges, curiosity, lease, dividend, fee and brokerage revenue. Nevertheless, this discount is not going to be relevant for salaries.
This discount will come into power from tomorrow and shall be relevant for the remaining a part of the monetary 12 months 2020-21, i.e. March 31, 2020.
The date for the tax audit was additionally pushed again by a month — from September 30, 2020 to October 31, 2020, the finance minister mentioned. Furthermore, the interval of “Vivad se Vishwas” Scheme for making cost with out further quantity shall be prolonged to December 31, 2020.
Ms Sitharaman was addressing the media to announce the primary tranche of schemes beneath the Rs 20 lakh crore package deal. She is predicted to carry extra such press conferences within the coming days to handle different sectors.