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.
IGNOU Ph.D. Exam 2022: Answer key of IGNOU Ph.D. entrance exam released, download here
IGNOU Ph.D. Exam 2022: National Testing Agency (NTA) has released the answer key of the Indira Ga
Thanks to the stormy innings of Mark Chapman (104 *) and James Neesham (45 *), New Zealand defeat
The last match of the five-Test series between India and England will start today at the Edgbasto
The government may impose a limit of 60-7 million tonnes on sugar exports in the next season, whi
Because of the increasing cases of coronavirus, restrictions in Mumbai have been extended till Ja
Leader of Opposition in Bengal Legislative Assembly and BJP MLA Suvendu Adhikari met Prime Minist
Flood of dengue patients: Platelets start depleting suddenly; A few hours of delay can happen
Dengue cases are increasing. You must be wondering where, when, and how… we have not heard
PSEB Result 2022: Punjab Board 10th-12th results can come today, know how to check your scorecard
PSEB Result 2022: Punjab School Education Board (PSEB) can release the result of the class 10th,
UP Sunday Lockdown: Every Sunday in UP, complete lockdown, fine up to 10,000 for not wearing masks
Lucknow UP Sunday Lockdown: Even after being hit by the second wave of Coronavirus infection, Chi
In South Sudan, 1171 Indian Army personnel have been awarded UN Medal for their excellent service
