FM Nirmala Sitharaman's TDS, TCS move will not ease tax burden: Experts

Boosting short-term liquidity for businesses, Finance Minister Nirmala Sitharaman on Wednesday reduced the TDS (tax deduction at source) and TCS (tax collection at source) rates for non-salaried payments by 25 per cent up to March 31, 2021, and extended key deadlines related to return filing.
 

The move will help release liquidity worth Rs 50,000 crore, according to government estimates. Experts, however, feel that its impact will be limited as tax incidence remained the same. The first instalment of  advance tax falls due on June 15.

The announcement is part of Prime Minister Narendra Modi’s Rs 20-trillion financial package to fight the