New Delhi: While announcing the details of the economic package, Union Finance Minister Nirmala Sitharaman on Wednesday extended the due date for all Income Tax Returns to November 30. Also Read - 'Why Can't Private Hospitals Built on Free Land Give Free Treatment to COVID-19 Patients', SC Asks Centre
“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. Also Read - Nokia Suspends Operations at Its Tamil Nadu Plant After 42 Employees Test COVID-19 Positive: Report
“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. Also Read - Amid COVID-19, Researchers Develop Tool to Detect Antivirus Antibody in Just 20 Minutes
She also said that the payment for contract, professional fees, interest, rent, dividend, commission and brokerage shall be eligible for this reduced rate of TDS.
She further added that the reduction shall be applicable for the remaining part of the FY 2020-21 from May 14, 2020 to March 31, 2021. She added that the measure will release liquidity of Rs 50,000 crore.
In the wake of the coronavirus pandemic, the Central government also announced Rs 2500 crore EPF support business and workers for three months.
She said that under Pradhan Mantri Garib Kalyan Package, the payment of 12 per cent of employer and 12 per cent of employee contributions were made into EPF accounts of eligible establishments.
Sitharaman further added that it was provided earlier 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.