The Centre on Wednesday extended the deadline for filing an income tax return (ITR) for 2019-20 to November 30 from July 31. It also reduced the tax deduction at source (TDS) and tax collection at source (TCS) rates by 25% to give more disposable incomes in the hands of taxpayers.
“From tomorrow (Thursday) till March 31, 2021, the TDS/TCS rates have been reduced by 25% of the existing rate… This shall also apply to all payments for contracts, interest, rent, dividend, commission or brokerage,” Finance Minister Nirmala Sitharaman said.
TDS is applicable to various incomes such as salaries, interest received and commission received. TCS is an income tax collected by the seller of specified goods from the buyer and deposited to the government.
"This reduction will release nearly Rs 50,000 crore into the hands of people who would have otherwise paid it as TDS,” Sitharaman said.
The government also extended till December 31, the assessments getting time-barred on September 30. Those getting time-barred on March 31, 2021, have been extended till September 30, 2021.
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