In view of spread of Novel Corona Virus (COVID-19) and challenges faced by taxpayers in meeting the compliance requirements under various provisions of income tax act the following measures have been taken by the Govt.

Tax related measures announced by FM on 13th May 2020

1. Reduction in Rates of Tax Deduction at Source (TDS) and Tax Collected at Source (TCS) – The TDS rates for all non-salaried payment to residents, and tax collected at source rate will be reduced by 25 percent of the specified rates for the remaining period of FY 20-21. This will provided liquidity to the tune of Rs 50,000 Crore. This reduction shall be applicable for the remaining part of the FY 2020-21 i.e. from 14th May 2020 31 st March, 2021.

Check – TDS Rate Chart for AY 2020-21 and AY 2021-22

TCS Rate Chart for AY 2020-21 and AY 2021-22- Updated

2. Payment for contract, professional fees, interest, rent, dividend, commission, brokerage, etc. shall be eligible for this reduced rate of TDS.

3. All pending refunds to charitable trusts and non‑corporate businesses & professions including proprietorship, partnership, LLP and Co-operatives shall be issued immediately.

4. Due date of all income-tax return for FY 2019-20 will be extended from 31st July, 2020 & 31st October, 2020 to 30th November, 2020 and Tax audit from 30th September, 2020 to 31st October,2020.

a)  Income Tax Return filing Due date Extended as follows

S. No. Assessee Previous due date New Extended Due date
1. Assessee if he/it is required to submit a report under section 92E pertaining to international or specified domestic transaction(s)​ 30.11.2020 30.11.2020
2. Assessee (not having any international or specified domestic transaction) is

(a) corporate-assessee or

(b) non-corporate assesse (whose books of account are required to be audited) or

(c) partner of a firm whose accounts are required to be audited

31.10.2020 30.11.2020
3. All Assesses other than 1 and 2 above 31.07.2020 30.11.2020

b) Due date Extended for Filing Tax Audit report and filing of belated income tax returns for FY 2018-19.

S. No. Due date Extended for Previous Due date New Extended Due date
1 Last date for filing belated return for FY 2018-19(AY 2019-20) 31.03.2019 30.06.2020
2 Filing Tax audit report u/s 44AB 30.09.2020 31.10.2020

5. Date of assessments getting barred on 30th September,2020 extended to 31st December, 2020 and those getting barred on 31 st March,2021 will be extended to 30th September, 2021.

6. Period of Vivad se Vishwas Scheme for making payment without additional amount will be extended to 31st December, 2020.

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4 Comments

  1. V K Agarwal says:

    Regular offices are to soon start. Assessees & Professional are to work out various details & file returns after analysis. However, officials would have least work & should complete barred assessments in lax time. They have been allowed excessive extended time unnecessarily.

  2. Madan Jain says:

    Tds deducted at 25% lesser amout,
    Is applicable to bills raised earlier also but paid on or after 14 may 2020.

    Is it correct ?

    1. bhupi0077 says:

      He is incorrect .
      TDS is required to be deducted at the time of payment or credit , whichever is earlier. Therefore if bill is raised before 14/05/2020 and payment is made after 14/05/2020 then tds is required to be deducted at previous rates applicable before 14/05/2020

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