No TDS cut for salaried to avoid compliance burden: Finance Secy : 15-05-2020

The 25% cut in tax deducted at source (TDS) the government has announced as part of the Atmanirbhar Bharat Abhiyan economic stimulus package is not applicable for salaried employees because it would lead to higher compliance burden, finance secretary Ajay Bhushan Pandey has said.

“Salary earners would have had to face higher tax and interest at the end of the year (while filing returns), which is why we did not reduce the TDS for salaried segment,” he added.

Source : Business News