Direct Tax Measures announced by FM on 13th May, 2020

DIRECT TAX MEAUSRES ANNOUNCED BY FM ON 13TH MAY, 2020

1. TDS/TCS RATE REDUCTION

The rates of TDS/TCS in respect of specified payments or receipts shall be reduced by 25% of the existing rates. (refer the table below for section wise reduced TDS and TCS rates)
Applicability of Reduced TDS & TCS rates: applicable for payments / Tax Deducted / TCS collected during the period 14th May, 2020 to 31st March, 2021
Non-Applicability – This relief is not available to salaried employees & non-residents’.

2. REFUND RELATED:

All pending refunds to charitable trusts and non- corporate businesses & professions including Proprietorship, Partnership, LLP and Co-operatives shall be issued immediately

Note: The above is not applicable to Corporate assesses.

3. DUE-DATE EXTENSIONS:

a) Extension for filing ITRs for FY 2019-20 (relevant to A.Y.2020-21)

3. DUE-DATE EXTENSIONS:

b) Assessment Proceedings

c) Vivad Se Vishwas Scheme:

Last date for opting under the scheme without making payment of additional amount: extended to 31st December, 2020

Note 1:

Reduced rates are for amount paid or credited during the period 14.05.2020 to 31.03.2021

Note 2:

It should be noted the reduced rate of TDS/TCS are not applicable in the following situations:

Where tax is deductible from salary or provident fund u/s 192 or 192A respectively
Where the sum is paid or payable to a non-resident person
Where a resident person does not furnish his PAN or Aadhaar and the tax is deductible at a higher rate u/s 206AA or 206CC, as the case may be.

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