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Salaried class excluded from TDS benefit to avoid tax burden: Govt

To boost short-term liquidity for businesses, the government on Wednesday reduced TDS and tax collected at source (TCS) rates for non-salaried payments by 25 per cent up to March 31, 2021

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The reduction in TDS/TCS rates has been largely done to facilitate businesses get that much extra during an economically difficult period

Dilasha Seth New Delhi

4 min read Last Updated : May 15 2020 | 2:14 AM IST

Amid criticism of excluding the salaried class from reduced tax deducted at source (TDS) benefit, Finance Secretary Ajay Bhushan Pandey on Thursday clarified it was done to prevent ‘heavy tax burden’ at the end of the year because tax incidence remained the same.

To boost short-term liquidity for businesses, the government on Wednesday reduced TDS and tax collected at source (TCS) rates for non-salaried payments by 25 per cent up to March 31, 2021. This is part of Prime Minister Narendra Modi’s Rs 20-trillion financial packages to fight the Covid-19 pandemic.

“The TDS on salary has not been reduced to

Topics : Nirmala Sitharaman Finance Secretary tax deductions TDS

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