All income tax returns extended to 30 November: FM
NEW DELHI : The due date for Income Tax Returns(RTR) for the year 2019-2020 has been extended from July 31 to November 30.TDS, TCS rate for non-salaried payments for period up to March 31, 2021 has been slashed by 25%, a move that will release Rs 50,000 crore into the system, she said.
Earlier, the due date to file for Income Tax return was from July 31 and October 31. But now the ITR due date has been extended to November 30.
Finance Minister Nirmala Sitharaman “Due date for all income-tax return for FY 2019-20 will be extended from July 31, 2020, and 31 October 31, 2020, to November 30, 2020, and tax audit from September 30, 2020, to 31st October 2020,” the Sitharaman stated.
The announcement has come as a huge relief for millions of taxpayers in the country amid coronavirus lockdown. Earlier, the government had extended the deadline for receiving the Form-16 from June 10, 2020, to June 30, 2020, via an ordinance dated March 31, 2020.
“In order to provide more funds at the disposal of taxpayers, the rates 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% of the existing rates,” the Finance Minister said. For contract, professional fees, interest, rent, dividend, commission, brokerage, etc shall be eligible for this reduced rate of TDS.
In the first of her several addresses to outline the contours of the package, Ms Sitharaman announced 15 different measures today, which involved MSMEs (Micro, Small and Medium Enterprises) NBFCs (Non-Bank Financial Companies), Provident Fund, Real Estate and Taxation.
The government also reduced the contribution for Employees Provident Fund for private firms for 3 months – from 12 per cent to 10 per cent. There will be no change for state-run firms.
The government also said it would pay the EPF contribution for employees of MSMEs (Micro, Small and Medium Enterprises) to help them recover from the crisis.
