The various direct tax relief announced are as under:
1. TDS rate shall be reduced by 25% and this shall be applicable on type of TDS. However do remember that this TDS rate shall be applicable on all deduction from 14.05.2020 i.e. if you have made any TDS deduction on or before 13.05.2020 it needs to be deducted at the existing rate.
This reduced rate shall be applicable for entire 2020-21 financial year i.e. from 14.05.2020 to 31.03.2021. Such reduction of TDS rate is only applicable on TDS other than salary.
For eg: Now TDS rate on contracts for individual u/s 194C would be 0.75% as compared to 1% rate.
2. All pending refunds to charitable trusts and non corporate businesses & professions including proprietorship, partnership, LLP and Co-operatives shall be issued immediately.
3. 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. Thus, now Income tax return due date from 31st July and 31st October has been extended to 31st October for everyone.
4. Date of assessments getting barred on 30th September, 2020 extended to 31st December, 2020 and those getting barred on 31st March, 2021 will be extended to 30th September, 2021.
5. Period of Vivad se Vishwas Scheme for making payment without additional amount will be extended to 31st December,2020. Thus due date for Vivad se vishwas is now 31.12.2020.
To read more from original Press release CLICK HERE.
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