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.
Most of the states in the country still have an opportunity to reduce the value-added tax (VAT).
In the Tikunia case, the investigation team filed a five thousand-page charge sheet in the court
Before the Lok Sabha elections, the Election Commission of India (ECI) has taken a big action. Th
Ranchi 4.7 magnitude earthquake shook the land of Jamshedpur, people ran out of homes
Ranchi: Earth shook in the morning of Friday (June 5, 2020) in Jharkhand. Earthquake tremors were
Former Prime Minister Sheikh Hasina has questioned the Bangladeshi government over the murder of
The real purpose of the Russian attack against Ukraine was to prevent it from going to NATO, but
Afghanistan: People forced to sell daughters due to hunger, UN warns of the food crisis
Afghanistan is facing the worst hunger crisis ever. Till now people were somehow surviving by sel
Indian-origin actor Dev Patel risked his life to save a stranger's life. Dev, who became famous w
There is a decrease in people with positive thinking about higher education in America. There has
China's popular smartphone company Xiaomi has launched its new latest smartphone series globally.
