Analysis of Direct Tax changes introduced by the FM -Let discuss
Analysis of Direct Tax changes introduced by the FM -Let discuss The Finance Minister recently announced various changes to Direct Tax while giving the details of the Economic Package. Various relaxations were given to the taxpayers in the form of extension of the statutory due dates, and reduction in the TDS and TCS rates. After the relaxations were announced by the FM people had several questions about the implications of such changes. Ques1. The TDS/TCS rates have been reduced by 25% for the period 14/05/2020 to 31/03/2021. Please tell us if this relaxation covers all the provisions of TDS. Also, what will be the possible implications of the reduction in TDS rate? The Economic Package was focused on creating liquidity. Due to COVID-19 lockdown, the money supply in the entire economy has squeezed. The rotation of money has stopped as the businesses are shut and people are locked at their homes. Thus, there was a pressing need to bring back money into the economy to boost back the en