NEW DELHI: In a astronomical reduction for taxpayers, finance minister Nirmala Sitharaman on Wednesday launched key reforms within the tax structure.
The measures, launched as allotment of authorities’s Rs 20 lakh crore economic stimulus kit, objectives to elongate income hand and ease the liquidity rigidity confronted by folks attributable to the ongoing nationwide lockdown to wrestle the spread of the deadly coronavirus pandemic.
Right here are the key announcements made by finance minister Nirmala Sitharaman:
* Extension of due date for filing tax returns
Due date for filing of all profits tax returns for the financial year 2019-20 has been extended from July 31 and October 30, 2020 to November 30, 2020.
Extra, all date of assessments getting time-barred on September 30, 2020 has been extended to December 31, 2020 and folks getting barred on March 31, 2021 has been extended till September 30, 2021.
* Reduction in TDS/TCS rate for non-wage funds
The rates of tax deducted at source (TDS) for non-salaried specified funds made to residents and rates of tax sequence at source (TCS) for the specified receipts has been reduced by 25% of the present rates. This shall notice to every form of transactions alongside side fee for contract, official charges, passion, hire, dividend, commission, brokerage, and so on. will be eligible for this reduced rate of TDS.
“This reduction would starting up practically Rs 50,000 crore within the fingers of the oldsters that will maybe maybe well non-public in any other case paid it as TDS,” Sitharaman said.
The reduction will be applicable for the final allotment of the financial 2020-21, that is, from May perhaps well maybe well also just 14, 2020 to March 31, 2021.
* EPF make stronger for industry, workers
For all companies, the statutory responsibility to pay 12 per cent of basic wage as employer’s half to employee provident fund (EPF) contribution has been reduced to 10 per cent to elevate their liquidity. This plot will provide liquidity up to Rs 6,750 crore to employers and workers over three months.
Beneath Pradhan Mantri Garib Kalyan Package (PMGKP), fee of 12 per cent of employer and 12 per cent employee contributions used to be made into EPF accounts of eligible establishments, providing salaries for the month of March, April and May perhaps well maybe well also just 2020. This make stronger has been extended by but one more 3 months to June, July and August 2020.
* Rapid music processing of pending funds
The profits tax department will immediate music processing of pending refunds to charitable trusts, LLPs, non-corporate companies and proprietorship companies, among others.
Sitharaman additionally said that the profits tax department has already cleared Rs 18,000 crore rate of refunds the keep the quantum due used to be up to Rs 5 lakh.
* Vivad se Vishwas Map fee
The Vivad Se Vishwas plot for teach tax dispute likelihood has been extended by six months till December 31, 2020.
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