• In order to provide more funds at the disposal of the taxpayers, the rates of Tax Deduction at Source ( for non salaried specified payments made to residents and rates of Tax Collection at Source ( for the specified receipts shall be reduced by 25 of the existing rates.
• Payment for contract, professional fees, interest, rent, dividend, commission, brokerage, etc shall be eligible for this reduced rate of TDS.
• This reduction shall be applicable for the remaining part of the FY 2020 21 i e from tomorrow to 31 st March, 2021.
•This measure will release Liquidity of Rs 50 000 crore.
Other Direct Tax Measures
• All pending refunds to charitable trusts and non corporate businesses professions including proprietorship, partnership, LLP and Co operatives shall be issued immediately.
• Due date of all income tax return for FY 2019-20 will be extended from 31 st July, 2020 & 31 st October, 2020 to 30 th November, 2020 and Tax audit from 30 th September, 2020 to 31 st October, 2020
• Date of assessments getting barred on 30 th September, 2020 extended to 31 st December, 2020 and those getting barred on 31 st March, 2021 will be extended to 30 th September, 2021.
• Period of Vivad se Vishwas Scheme for making payment without additional amount will be extended to 31 st December, 2020.