a) In the wake of the outbreak of pandemic COVID-19, Senior Advocate and Lok Sabha Member P.P Chaudhary wrote to Finance Minister Nirmala Sitharaman for waiving the Interest on Delayed TDS Payment. The Finance Ministry had extended the deadline for Tax Deduction at Source (TDS) till June 30, 2020, but delayed payment will attract interest rates.
b) The objective of this step of the government is to impart financial security to the nation in this hour of crisis and to provide much-needed relief to lakhs of honest taxpayers in the country.
c) In furtherance of various representations received from trade and industry associations, the government had extended the deadline for payment of various direct and indirect taxes especially the Tax Deducted at Source (TDS) till June 30, 2020.
“However, the delayed payments of TDS and other taxes still attract payment of Interest, albeit at a lower rate, but it still does impose a financial burden on the assessees. As they diligently follow the lockdown guidelines, these assessees find it increasingly difficult to receive timely payments from their clients and collate their books of accounts from remote locations,” he stated in the letter to Nirmala Sitharaman.
d) P.P Chaudhary also said that the due date has been extended and the penalty has been waived off, also consider the request to waive off the interest for delayed payments for the period till June 30, 2020.