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The coronavirus crisis has impacted lives severely. Several employees have been fired and many have witnessed salary reduction. In order to offer some relief to taxpayers amid such situation, Finance Minister Nirmala Sitharaman recently announced a slew of direct tax measures. FM said in her press conference, We think this measure will release liquidity of Rs 50,000 crore who otherwise would have paid the tax.

"5 Income Tax relaxations that you need to know"
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1. TDS rate cut: In order to enhance liquidity in the hands of taxpayers, FM announced a reduction in the rate of tax deducted at source (TDS) for non-salaried specified payments made to residents by 25%.

2. TCS rate cut: In order to provide more funds at the disposal of the taxpayers, the rates of Tax Collection at Source (TCS) for the specified receipts are reduced by 25% of the existing rates.

3. ITR filing deadline extension: The due date of all income-tax return for FY 2019-20 will be extended from 31st July 2020 and 31st October 2020 to 30th November 2020 and Tax audit from 30th September 2020 to 31st October 2020. Date of assessments getting barred on 30th September 2020 extended to 31st December 2020 and those getting barred on 31st March 2021 will be extended to 30th September 2021.

4. Pending tax refunds: All pending refunds to charitable trusts and noncorporate businesses & professions including proprietorship, partnership, LLP and Co-operatives shall be issued immediately.

5. Vivad Se Vishwas extension: Period of Vivad Se Vishwas Scheme for making payment without additional amount will be extended to 31st December 2020. The scheme was introduced to reduce income tax pending litigation and generate timely revenues for the government. It aims to help taxpayers end their tax disputes with the department by paying disputed tax and get a waiver from payment of interest and penalty.