Home/ Money / Personal Finance/  Deadline for filing income tax return (ITR) extended amid coronavirus crisis

As part of the economic stimulus amid coronavirus, FM Nirmala Sitharaman announced that due date for filing all income tax returns has been extended from July 31 to November 30.

She also announced that TDS, TCS rate for non-salaried payments for period up to March 31, 2021 has been slashed by 25%, a move that will release 50,000 crore into the system, she said.

"In order to provide more funds at the disposal of taxpayers, 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% of the existing rates," the Finance Minister said.

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

In other personal finance announcements made on Wednesday, statutory PF contribution by employer has been reduced to 10% from 12% earlier, a move slated to provide 6,750 crore liquidity relief.

The decision to reduce the employees provident fund (EPF) statutory deductions for both employers and employees to 20% for the next three months will benefit around 650,000 companies and 4.3 crore such employees.

Currently employees and employers deposit 24% - 12% each of their basic salary and housing allowance as EPF deductions every month. The move will have a twin benefit – reduction of employee cost for employers and 2% more take home pay for employees.

However, central public sector enterprises and state PSUs will continue to pay 12% of the employer's share whereas employees will pay 10%, the finance minister added.

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Updated: 13 May 2020, 05:21 PM IST
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