On Wednesday, Finance Minister Nirmala Sitharaman declared the extension of due date for filing income tax returns (ITR) has been shifted from July 31 to November 30 for the Assessment Year 2020-21.
“The due date for Income Tax Returns (ITR) for the year 2019-2020 is now being extended from July 31 and October 31 to November 30, 2020,” Sitharaman said.
“In order to provide more funds at the disposal of the taxpayers, the rate of Tax Deduction at Source (TDS) for non-salaried specified payments made to residents and rates of Tax Collection at Source (TCS) for the specified receipts shall be reduced by 25 per cent of the existing rates,” Sitharaman said.
For the second time, the deadline has been extended. The deadline was extended from March 31, 2020, to June 30 as a part of the first relief package.
The tax audit due date has also been extended to October 31, 2020. Sitharaman proclaimed that the TDS rates will be reduced by 25 per cent of the specified rates for all non-salaried payment to residents, and tax collected at source rate will be reduced by 25 per cent for the remaining period of FY 20-21.
She further added that the payment for a contract, professional fees, interest, rent, dividend, commission and brokerage shall be eligible for this dropped rate of TDS. She added that the measure will aid in releasing liquidity of Rs 50,000 crore.
The Central government also declared Rs 2500 crore EPF support business and workers for three months in the view of COVID-19 pandemic.
She stated that under Pradhan Mantri Garib Kalyan Package, into EPF accounts of eligible establishments the payment of 12 per cent of employer and 12 per cent of employee contributions was been made.
Finance Minister further added that earlier it was provided for the salary of March, April and May this year. “This support will be extended by another 3 months to salary months of June, July and August 2020,” she added.