TDS rate cut by 25%; period for tax returns extended in Rs 20-trn stimulus

Sitharaman further said the income tax department will fast track processing of pending refunds to charitable trusts, LLPs, non-corporate businesses and proprietorship firms, among others

In a relief to taxpayers, the government on Wednesday extended the deadline for filing of all income tax returns for 2019-20 fiscal till November 30, 2020.

Announcing a slew of relief measures for the coronavirus-hit economy, Finance Minister Nirmala Sitharaman also slashed TDS (tax deducted at source)/TCS (Tax collected at source) rates for non-salary payments to residents by 25 per cent.

"From tomorrow till March 31, 2021, the TDS/TCS rates have been reduced by 25 per cent of the existing rate... This shall also apply to all payments for contracts, interest, rent, dividend, commission or brokerage.. all of these will be eligible