New Delhi: In the view of the second wave of the novel coronavirus pandemic in the country, the Union government has recently announced various income tax relief for the common man. Here are some of the important announcements that you should know about.
- No tax on the amount received by employees from employers or any other person for covid treatment. The tax department said many taxpayers have received financial help from their employers and well-wishers for meeting their expenses incurred for the treatment of COVID-19. “In order to ensure that no income tax liability arises on dis account, it has been decided to provide an income-tax exemption to the amount received by a taxpayer for medical treatment from the employer or from any person for treatment of COVID-19 during FY 2019-20 and subsequent years,” it added.
- The tax compliance deadline for saving capital gains tax extended. So tax compliance deadline falling between 1 April, 2021, and 29 September 2021, for making an investment, deposit, payment, acquisition, purchase, construction or such other action to save tax under provisions contained in Section 54 to 54GB of the Income Tax Act, has been extended till 30 September 2021.
- Ex-gratia payments received from employers by the families of employees who lost their lives to COVID-19 would be exempt from income tax in FY20 and subsequent years, the finance ministry notified on Friday. The limit for such tax-exempted compensation would be Rs 10 lakh if received from any other person. The move comes as a relief to many taxpayers affected by the coronavirus pandemic. The ministry added that several taxpayers has received financial support from their employers and well-wishers for bearing the costs incurred during COVID treatment.
Saraswathi Kasturirangan, Partner, Deloitte India, said: ”The announcement provides significant relief to the beneficiaries of Covid relief. Any financial assistance received by a taxpayer for Covid treatment will be totally tax-exempt. Further financial assistance extended by an employer in the event of death of an employee due to Covid is totally exempt, assistance received from others is tax-exempt up to a total of Rs. 10 lakhs. These benefits are available for FY 2019-20 and beyond.”
- The government on Friday announced various relief measures for the taxpayers including the extension of PAN and Aadhar linking to 30 September from 30 June. In case you fail to link PAN and Aadhar your PAN becomes invalid.
For payment without interest under Vivad se Vishwas scheme, the deadline has been extended August 31. Last date of payment of amount under Vivad se Vishwas (with additional amount) has been notified as October 31.