Economic News 13-05-2020: TDS rates will be reduced by 25%
EPF will give less than 15 thousand salary, government announces 25% reduction in TDS. TDS rates will be reduced by 25%. This will apply to all payments whether it is commission, brokerage or any other payment.
- Government extends EPF contribution for three months, till now government will help in EPF
- Last date of income tax return for 2019-20 has been extended to 30 November 2020
- TDS and TCS rates REDUCED for non-salary specified payments. #atmanirbharbharat Move applicable till March 31, 2021. Provides Rs 50,000 Cr liquidity.
- Due Date of ITR extended till 30 November. –Audit to be extended till October 31. –Tax assessment to be extended till 31 December.
Finance Minister Nirmala Sitharaman gave information about the breakup of Kovid-19’s relief package of 20 lakh crore. Under this package, PF funds have been left to both the employer and the employer. Under this, all the firms and companies where less than 100 employees work and their salary is less than 15 thousand, then the government will give their PF money. Apart from this, the government has also cut TDS by 25 percent.
15 thousand Salaried Persons 3 months of helping
Such companies where there are less than 100 employees, the government will pay the PF money of less than 15 thousand salary. all firms and companies employing less staff than 100, and his salary is less than 15 thousand, it will afford the Government of the PF. Government will deposit 24% of the salary of such employees in their PF. The government extended EPF contribution for three months, now by August the government will help in EPF.
15 हजार की सैलरी वालों को 3 महीने की मदद
सभी फर्म और कंपनियां जहां 100 से कम कर्मचारी काम करते हैं और उनकी सैलरी 15 हजार से कम है, तो उनके पीएफ का पैसा सरकार देगी। ऐसे कर्मचारियों की सैलरी का 24% हिस्सा सरकार उनके पीएफ में जमा करेगी। सरकार ने ईपीएफ कंट्रीब्यूशन को तीन महीने के लिए आगे बढ़ाया, अब अगस्त तक ईपीएफ में सरकार मदद करेगी।
PF-EPF: Companies can increase stake in PF from 12% to 10%
The government has decided to reduce PF contribution from 12% to 10%. It will be for three months. However, the PF of central and state government employees will remain cut by 12%. It will be for those employees who have not come under the poor welfare scheme. This will benefit about 43 crore employees. This will give an additional Rs 6750 crore to employees and companies.
TDS rate reduced by 25%, 55 thousand crores will benefit
- TDS rates will be reduced by 25%. This will apply to all payments whether it is commission, brokerage or any other payment.
- The reduction in rates will be effective from May 13 and will continue till March 2021. TDS deduction will result in a profit of 55 thousand crore rupees.
- The last date of income tax return for 2019-20 has been extended to 30 November 2020.
What is TDS?
If someone has any income, then after deducting tax from that income, if the person is given the remaining amount, then the amount deducted as tax is called TDS. The government collects tax through TDS. It is deducted on different types of income sources such as salary, interest on any investment or commission etc. Any institution (which comes under the purview of TDS) that is paying, deducts a certain amount as TDS.