Finance Minister cuts 25% in TDS, know what is TDS and how it will benefit


Posted on 14th May 2020 01:26 pm by rohit kumar

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.

Did you know?Explore Trending and Topic pages for more stories like this.

 

 

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.

2 Like 0 Dislike
Previous news Next news
Other news

COVID-19 India Updates: 30,615 new cases of COVID-19 reported in India in the last 24 hours, 514 deaths

In the last 24 hours, 30,615 new cases of COVID-19 have been reported in the country. According t

Manipur Violence: Violence flares up again in Manipur, 2 soldiers were martyred in an encounter with militants in Moreh; six injured

Once again the fire of violence is blazing in Manipur. Two commandos of Manipur Police have been

Covid-19: Corona on the verge of dying in India, only 347 patients came in the last 24 hours, and three died

There is a rapid decline in the cases of Korana in the country. According to the data released by

Shraddha murder: Aftab was sent to judicial custody for 14 days, produced in court through video conferencing

Aftab Amin Poonawalla, accused of murdering his live-in partner Shraddha Walker, currently lodged

IPL paved the way for other countries and sports: Professional league of 8 other sports started in India, 15 cricket leagues start including Australia and Pakistan

Indian Premier League (IPL) has proved to be a game-changer for cricket as well as other sports i

IND vs PAK: 'If I were captain, I wouldn't shake hands with Pakistani players,' Praveen Kumar said bluntly.

Former Indian cricketer and chairman of the Uttar Pradesh Senior Selection Committee, Praveen Kum

Monkeypox reached 15 countries in 15 days: Quarantine necessary if symptoms are found in Belgium; Isolation ward for suspected patients in Mumbai

The world battling the corona epidemic is now increasingly vulnerable to monkeypox. The disease h

Pakistan Floods: South African NGOs help to the people affected by the floods in Pakistan, the victims are getting disaster-resistant homes

A South African NGO has extended a helping hand to the flood-affected people in Pakistan. South A

South African scientists claim: Omicron infection will increase immunity against Delta in fully vaccinated people, WHO also accepted this

The World Health Organization (WHO) has also accepted the research that fully vaccinated people h

Bangladesh Violence: Bangladesh got scared after seeing the protest of Hindu organizations, and made this special appeal to the Indian government

Bangladesh has strongly condemned the violent protest outside its Deputy High Commission in Kolka

Sign up to write
Sign up now if you have flare of writing..
Login   |   Register
Follow Us
Indyaspeak @ Facebook Indyaspeak @ Twitter Indyaspeak @ Pinterest RSS



Play Free Quiz and Win Cash