Tax and Compliance related announcement through Economic Package

Tax and Compliance related announcement through Economic Package

A summarised interpretation of Tax and Compliance related changes announced through press conference of Finance Ministry

Rate of TDS and TCS has been reduced by 25% on payments whether Professional fee, Interest payment or rent payment etc. Such reduced rate of TDS and TCS will be applicable for all businesses whether its company or individual. However advantage of reduced rate of TDS and TCS shall not be applicable for salaried class and payment to Non-resident. Such amendment will be effective from all payments being made from 14th May 2020 to 31st March 2021.

All pending refunds to charitable trusts and non-corporate businesses & professions including proprietorship, partnership, LLP and Co-operatives shall be issued immediately. Previously, all pending returns up to 5 lakh were allowed.

Due date of all Income Tax Returns for Financial Year 2019-20 has been extended. Now all income tax returns including ITR 1 (Salaried Employees) can also be filed till 30th November 2020. Further due dates for tax audits also extended from 30th September 2020 to 31st October 2020.

Date of assessments which are getting barred as on 30th September 2020 is extended to 31st December 2020. Those getting barred on March 31, 2021 are being extended till 30th September 2021. Further, Vivad se Vishwas scheme is being also extended till 31st December 2020 without any additional amount.

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