"This reduction would release nearly Rs 50,000 crore in the hands of the people who would have otherwise paid it as TDS," Sitharaman said.
Also, the Vivad Se Vishwas scheme for direct tax dispute resolution has been extended by six months till December 31, 2020.
Sitharaman further said the income tax department will fast track processing of pending refunds to charitable trusts, LLPs, non-corporate businesses and proprietorship firms, among others.
Also, assessments getting time-barred onSeptember 30 have been extended till December 31, 2020 and those getting time-barred onMarch 31, 2021 have been extended till September 30, 2021.
She also said the income tax department has already cleared Rs 18,000 crore worth of refunds where the quantum due was up to Rs 5 lakh.
Nangia Andersen LLP Director Sandeep Jhunjhunwala said "the reduction of TDS
rates on non-salaried payments by 25 percent will set free additional cash in the hands of the vendors, and help increase liquidity in the economy."
"This relief could be enjoyed by all businesses and would play a pivotal role in increasing cash flows as the beneficial rates would be available till the end of the current financial year.
"This coupled with release of pending refunds to all non-corporate tax payers would fast track the revival of business and enterprises," he added.