The central government on Wednesday announced a 25% tax rebate for non-salaried specified payments and a similar rebate in tax collection at source for specified receipts in a measure that will help release Rs 50,000 crore liquidity, it claimed.
The reduction is likely to impact payments of all contract fee, professional fee, interest, rent, dividend, commissions, brokerage etc but is unlikely to lead to any reduction in the taxes applied at source to salaries. This tax reduction will be applicable for the remaining part of the financial year 2020-2021.
Among other measures, the finance minister announced to defer the due date of filing of all income tax returns for the financial year 2019-20 from July 31 and October 31, 2020 to November 30, 2020. It also extended the deadline for Tax Audits to October 31, 2020 from September 30, 2020.
In another relief, the finance minister said the date of assessments that were originally scheduled to get barred on September 30, 2020, will now be extended to December 31, 2020. Similarly, those getting barred on March 31, 2021, will now get barred on September 30, 2021.
The finance minister announced these among 15 relief measures announced on Wednesday including six pertaining to Micro, Small and Medium Enterprises (MSMEs), two each pertaining to EPF, NBFCs and MFIs and one each related to discoms, contractors and the real estate sector.
Sitharaman said her ministry will announce measures for different sectors in press conferences held every day in line with prime minister’s instructions and vision to create the environment for India’s emergence as a self-reliant economic force after the worst impact of coronavirus is over.
“The PM laid out a vision after wide and deep consultations with several sections of our society and these discussions were held at various levels with various ministries and taken up to the PMO (prime minister’s office) and the PM himself has spent considerable time on the inputs provided,” Sitharaman said.
She added that the package was essentially about making India self-reliant.
“Essentially this is to spur growth and to build a very self-reliant India and that’s why this whole initiative is called Aatma Nirbhar Bharat Abhiyaan,” she said.