Govt extends validity of lower withholding tax till June 30
The government has extended the validity of all lower withholding tax orders, secured by assessees, by three months till June 30 to mitigate the hardship caused by Covid-19-related disruptions.
In an order on Tuesday, the Central Board of Direct Taxes (CBDT) allowed time till June 30 to the taxpayers who had filed for lower TDS/TCS (tax deduction at source/tax collected at source) for FY21 and whose applications were pending for disposal of their FY20 order on lower TDS.
The extension will also be given if taxpayers have the lower TDS order for FY20 but have so far not applied similar order for FY21.
The CBDT said the extension was being provided due to the Covid-19 outbreak that had disrupted businesses all across, including the functioning of the Income-Tax Department.
The order has also prescribed a 10 per cent withholding tax on payments to non-residents (including foreign companies) having permanent establishment in India and not covered by the above scenarios) till June 30 or disposal of application, whichever is earlier.
The CBDT order is expected to allow seamless flow of payments to contractors and service providers, both residents and non-residents, as continuity of tax treatment will flow for another three months. IANS