Finance Minister Nirmala Sitharaman stated that the government has decided not to levy 2 percent tax deduction at source (TDS) on cash payments of above Rs 1 crore made through Agriculture Produce Market Committees (APMCs) in order to make immediate payments to farmers for their produce. In the Union Budget, the government had made the provision of levying 2 percent TDS on cash withdrawals exceeding Rs 1 crore to discourage the practice of making payments in cash.
Sitharaman has said that an additional 15 percent depreciation will be allowed on motor vehicles purchased between August 23, 2019, and March 31, 2020. She said the move is expected to give a boost to the automobile sector by driving sales.
The minister further said that the depreciation on cars purchased during the period will be 30 percent as against the normal rate of 15 percent. In the case of buses, lorries and taxis, she said the depreciation rate has been enhanced to 45 percent from 30 per cent. She added that depreciation helps companies reduce tax liabilities.