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TDS rate cut on salaries would have increased tax compliance burden: Official

Nirmala Sitharaman city New Delhi covid-19 pandemic
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NEW DELHI : To improve liquidity in the hands of taxpayers, finance minister Nirmala Sitharaman has reduced rate of tax deducted at source (TDS) and tax collected at source (TCS) by 25% but salaries have been kept out of the purview of relief.

Finance Secretary Ajay Bhushan Pandey has issued a clarification explaining how a TDS rate cut would have lead to more trouble for the salaried class.

He said TDS is deducted from salary after taking into account various eligible deductions like 80C and others of the salaried person. "If we reduced the TDS rate for salaried class then their compliance burden would have increased because they would be required to pay higher taxes at the year end along with interest.

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United Kingdom
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Deaths: 141 607
Recovered: 0
Russia
Russia
Cases: 8 494 589
Deaths: 237 619
Recovered: 0
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