InvestorQ : Which classes can get the benefit of TDS relief provided by the government?
simran Kaur made post

Which classes can get the benefit of TDS relief provided by the government?

Answer
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Anusha Savla answered.
4 months ago


Recently, with a view to solving the liquidity crunch in the economy the government has provided several reliefs to the taxpayers, and reduction in TDS/TCS rates is one of them. The said reduction in TDS/TCS will benefit professionals, self-employed, and senior citizens with rental or interest income.

However, the salaried individuals and non-resident taxpayers shall not get any benefit from the same. The rates shall be reduced by 25% in all categories. This concession in rate shall be available for the tax deducted or collected between May, 14 2020 and March 31, 2021.


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preetam lenka answered.
4 months ago


Clarifying on why the TDS rate has not been reduced for salaried cl***, Finance Secretary Ajay Bhushan Pandey on Thursday said TDS is deducted from salary after taking into account various eligible deductions like 80C and others of the salaried person. This, he said, has been done to ensure that salaried individual do not have to bear the burden of paying high taxes at the year end and also the interest burden.

"If we reduced the TDS rate for salaried cl*** then their compliance burden would have increased because they would be required to pay higher taxes at the year end along with interest. Hence TDS rate has not been cut for salaried cl***," he said.