Tax in India Photograph:( IANS )
India's finance minister also announced statutory PF contribution by the employer to be reduced to 10 per cent from 12 per cent earlier to provide Rs 6,750 crore liquidity relief
India's finance minister Nirmala Sitharaman while unveiling the financial package under "Atmanirbhar Bharat" announced that the government had decided to extend the deadline for filing of income tax returns for 2019-20 fiscal till November 30, 2020.
India's finance minister also announced a number of measures in an effort to boost the economy and protect the MSMEs and taxpayers.
"From tomorrow till March 31, 2021, the TDS/TCS rates have been reduced by 25 per cent of the existing rate... this shall also apply to all payments for contracts, interest, rent, dividend, commission or brokerage.. all of these will be eligible for 25 per cent rate reduction."
"This reduction would release nearly Rs 50,000 crore in the hands of the people who would have otherwise paid it as TDS," Sitharaman said.
While announcing the stimulus package, Sitharaman said that measures were meant to spur "growth and build a self reliant India", however, "self reliant India does not mean cutting off from rest of the world," the finance minister added.
India's finance minister also announced statutory PF contribution by the employer to be reduced to 10 per cent from 12 per cent earlier to provide Rs 6,750 crore liquidity relief.
Sitharaman also announced Rs 50,000 crore equity infusion through MSME "Fund of Funds" to provide support to growth potential MSMEs along with Rs 30,000 crore liquidity facility for NBFCs, housing finance companies and MFIs.