The government has relaxed the provisions concerning Tax Deduction at Source (TDS) allowing companies and taxpayers more time to comply with the norms.

These changes in norms providing flexibility in complying with TDS norms have come into effect with the Lok Sabha approving the necessary amendments proposed by the Finance Minister P Chidambaram in the Finance Bill 2008.

Under the new norms the tax payers would get additional six months for depositing TDS for March, the last month of a financial year. There would be no disallowance of expenditure incurred in March, if the tax deducted at source has been paid before the due date of filing of the return, he said.

The government relaxed TDS provisions taking into account views of members of Parliament.