TDS on non-salary income reduced by 25%; ITR filing deadline extended till November 30

New Delhi, May 13: Finance Minister Nirmala Sitharaman announced on Wednesday said that 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 per cent of the existing rates.

This reduced rate of TDS (or Tax deducted at source) will be available for payment for contract, professional fees, interest, rent, dividend, commission and brokerage income.

This reduction shall be applicable for the remaining part of the financial year 2020-21. It will come into force from tomorrow.

The Finance Minister also said that it will help to Rs 50,000 crores liquidity through TDS/TCS rate reduction.

Meanwhile, due date for filing income tax returns (ITR) was extended from July 31 to November 30. Also, Tax audit deadline has been extended from 30th September, 2020 to 31st October.