Skip to main content

5 income tax relaxations that you need to know

In order to enhance liquidity in the hands of taxpayers, FM announced a reduction in the rate of tax deducted at source (TDS) for non-salaried specified payments made to residents by 25%.

The coronavirus crisis has impacted lives severely. Several employees have been fired and many have witnessed salary reduction. In order to offer some relief to taxpayers amid such situation, Finance Minister Nirmala Sitharaman recently announced a slew of direct tax measures. FM said in her press conference, "We think this measure will release liquidity of Rs 50,000 crore who otherwise would have paid the tax."

5 Income Tax relaxations that you need to know:

1. TDS rate cut: In order to enhance liquidity in the hands of taxpayers, FM announced a reduction in the rate of tax deducted at source (TDS) for non-salaried specified payments made to residents by 25%. 

2. TCS rate cut: In order to provide more funds at the disposal of the taxpayers, the rates of Tax Collection at Source (TCS) for the specified receipts are reduced by 25% of the existing rates.

3. ITR filing deadline extension: The due date of all income-tax return for FY 2019-20 will be extended from 31st July 2020 and 31st October 2020 to 30th November 2020 and Tax audit from 30th September 2020 to 31st October 2020. Date of assessments getting obstructed on 30th September 2020 extended to 31st December 2020 and those getting obstructed on 31st March 2021 will be extended to 30th September 2021.

4. Pending Income Tax refunds: All pending income tax refunds to charitable trusts and noncorporate businesses & professions including proprietorship, partnership, LLP and Co-operatives shall be issued immediately.

5. Vivad Se Vishwas extension: Period of Vivad Se Vishwas Scheme for making payment without additional amount will be extended to 31st December 2020. The scheme was introduced to reduce income tax pending litigation and generate timely revenues for the government. It aims to help taxpayers end their tax disputes with the department by paying disputed tax and get a waiver from payment of interest and penalty.

It is worth mentioning that cash withdrawals over Rs 1 crore and foreign remittances have been kept out of the purview of the TDS cut.  Finance Secretary Ajay Bhushan Pandey recently clarified that cash withdrawals and foreign remittances have also been kept out of the rate reduction ambit to promote digital transactions and restrict larger outflow of money.

Finance Secretary Ajay Bhushan Pandey also clarified that the TDS on salary has not been reduced in order to prevent the salaried people from facing heavy tax burden at the time of filing returns and paying the full quota of taxes for the year.


Know about us - https://thetaxsupport.com
You can find more articles on at https://thetaxsupport.com/blog
You can find tutorial videos on at https://www.youtube.com/c/vipinsanger

Labels

Labels:
Location: New Delhi, Delhi, India

Comments

Post a Comment

Popular posts from this blog

Here's All You Need To Know About Indian Digital Tax

The Covid-19 outbreak has compelled businesses to transcend from traditional to digital models of work. With business models evolving on account of mass digitization, the complexities from a regulatory and taxation standpoint have only amplified. The advent and access to technology have enabled businesses to carry on business-as-usual with minimal physical presence. Unsurprisingly, India has the second-largest online users in the world, with over 560 million internet users, and hence, from the viewpoint of its tax revenue base, digital businesses could not be overlooked. However, as is the case in other jurisdictions, Indian tax laws were suited for conventional business models such as brick and mortar stores and thus in dire need of an overhaul. Recent Amendments To ensure that value created digitally is appropriately taxed; two significant amendments were introduced in Indian taxation laws in the recent past – The “Equalization Levy” – a tax aimed at foreign digital...
Post a Comment
Read more

Critical Analysis of the Companies (Amendment) Bill, 2020

Amendment to the Companies Act, 2013 (‘the Act’) seems to be a routine activity of the Indian Government. The Act was amended by the Companies Amendment Act, 2015, 2017, 2019 and now, in 2020 (as proposed). Every time, the object of the amendment is different – from the ease of doing business to ease of living for corporates.  With the Government’s objective of facilitating greater ease of living to law-abiding corporate, it had constituted Company Law Committee (‘Committee’) on September 18, 2019. The overall objective of the Government and the Committee was to decriminalize some more provisions of the Act based on their gravity and to take other necessary measures to provide further ease of living for corporates and companies in the country. The Committee submitted its report in November 2019.  Based on the recommendations of the Committee and an internal review by the Government, the Companies Amendment Bill, 2020 proposed amendment to various provisions of the Ac...
Post a Comment
Read more

Why You Should Not Use Credit Card..!!

Do you make purchases using credit cards?  Does one want to understand why you should not be using credit cards? A number of you'll think that employing a card is intelligent. There're basically three reasons that cause you to feel so: • Reward points like cash back • Zero interest if you pay on time • No got to carry cash We hardly got to pay the cardboard issuing bank anything aside from the minimum annual fee. Then how do these banks earn profit using their customer? Let's explain with an example: We use Facebook for free of charge, right? Then how does Facebook make money? They use our personal data, likes and dislikes to point out the target ads which match our needs. Now you get the purpose that there is nothing free within the world. Can you outwit the master/visa card companies? When you use a card, the parties involved within the transaction are: • The cardholder • The merchant • The merchant's bank Each time you (the cardho...
Post a Comment
Read more