Atmanirbhar Bharat - Income Tax announcements

The Hon'ble Finance Minister in her address for the stimulus packages and reliefs made the following announcements in relation to the direct taxes

Reduction in TDS/TCS rates for the remaining part of FY 2020-21

The Government announced a reduction by 25% of existing rates for Tax Deduction at Source for non salaried specified payments made to residents and rates of Tax Collection at Source for the specified receipts.

This reduction will provide more funds for disposal to the taxpayers to the tune of Rs 50,000 crores.

Issue of Pending refunds

All pending refunds to charitable trusts and non corporate businesses professions including proprietorship, partnership, LLP and Co operatives shall be issued immediately. This step will ensure more liquidity in the hands of small taxpayers which are partners in nation building as the Hon'ble Finance Minister rightly said

Extension for Income Tax Returns

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.

Extension for Vivad se Vishwas Scheme

The government has extended the date of making additional payments under the its dispute resolution scheme viz. Vivad se Vishwas Scheme to 31st December 2020 from 30th June 2020.