
New Delhi: Finance Minister Nirmala Sitharaman announced a 25 percent reduction in TDS in his press conference yesterday and announced the way for taxpayers to save about Rs 50 thousand crore.
Finance Minister Nirmala Sitharaman made several announcements yesterday through the first press conference under Prime Minister Narendra Modi's 20 lakh crore self-sufficient India package. One of the major announcements was that for all other payments except salary, tax deduction at source i.e. Tax deducted at source (TDS) and tax collection at source i.e. Tax collection at source (TCS) was reduced by 25%. has gone. This simply means that a 25% reduction in the TDS on non-salaried payments has been announced, which will bring in a liquidity system of Rs 50,000 crore and an amount of Rs 50,000 crore in the hands of the taxpayer.
This rebate will continue throughout this financial year, i.e., people will get the opportunity to take advantage of this rebate from 14 May 2020 to 31 March 2021.
What will be the benefit
A 25 percent reduction in TDS and TCS on non-salaried people will bring more money to spend. The benefit of this rebate will be available on all payments except salary, such as contract, professional fees, interest, rent, dividend, commission, brokerage, etc.
How will benefit
For example, consider it in such a way that if you get 10 lakh rupees of interest from the bank, on which TDS is 10 percent. According to 10 percent, TDS of 1 lakh rupees will be deducted on that amount and you get 9 lakh rupees. After tomorrow's announcement by the Finance Minister, there will be a saving of 25 per cent, that is, 7.5 per cent tax will be levied on the amount received instead of 10 per cent. In this way, where earlier the tax of 1 lakh rupees was deducted on the interest of 10 lakh rupees, now it will be reduced by 25 thousand rupees and the tax of 75 thousand rupees. In this way, you will get 9.25 lakh rupees, i.e. 25 thousand rupees will be more in your hands.
What is TDS
Through TDS, the government gets money from tax deduction on source. TDS is deducted at different income sources. As an example, TDS is deducted on salary, interest or commission on any investment, etc. Any institution which comes under the purview of TDS and is paying TDS to the government deducts a fixed amount as TDS. This can be done annually and can be cut on monthly basis also.
Prime Minister Narendra Modi will visit the famous Somnath Temple in Gujarat on January 11.
In Gujarat, the Vande Bharat Express train is falling prey to accidents after repeatedly collidin
Israel-Hamas war continues for the 15th day. The Israeli army is continuously targeting Hamas pos
North Korea fired 10 missiles, South Korea issued an air strike alert
North Korea has fired missiles once again. North Korea fired 10 missiles one by one on Wednesday,
Beating Retreat Ceremony Latest Update: Like every year, this time the closing ceremony of Republ
The Supreme Court on Thursday said it will hear in February BJP leader Subramanian Swamy's plea s
Charge increased on main accused Chauvin, 3 other policemen will also be tried
Washington. The third-degree charge of murder on police officer Derek Chauvin, the main accused i
Bilawal Bhutto Zardari, who was on a two-day visit to India to participate in the Shanghai Cooper
After the final of the FIFA World Cup, the colors of victory and defeat were visible at the Lausa
Vivo X70 series price revealed smartphones will be launched in India on this day
Vivo's premium smartphone series X70 is going to be launched in India in three days. At the same