Union Finance Minister Nirmala Sitharaman today announced relief for middle classes too today, offering a 25 per cent reduction in Tax Deduction at Source (TDS) for non-salaried specified payments and Tax Collection at Source (TCS) for the specified receipts to allow people more cash in hand. This will apply to payment for contract, professional fees, interest, rent, dividend, commission, brokerage, she said.
The measure will come into force tomorrow and last till the end of the financial year - Mach 2021.
It will allow a liquidity of Rs 50,000 crore for the people, Ms Sitharaman said, while announcing the contours of the 20 lakh crore financial package announced by Prime Minister Narendra Modi yesterday to counter the huge financial cost of the coronavirus.
In the first of her several addresses to outline the contours of the package, Ms Sitharaman announced 15 different measures today, which involved MSMEs, NBFCs (Non-Bank Financial Companies), Provident, Real Estate and Taxation.
