In mild of the second Covid wave’s impression on the financial system, the federal government on Friday introduced revenue tax exemptions for financial aids obtained by individuals for coronavirus therapy. It additionally gave tax exemption to ex-gratia obtained by kin of the deceased — if obtained from employers, the exemption is obtainable with none higher restrict, and, in case obtained from others, the waiver will probably be accessible as much as Rs 10 lakh.
“In order to ensure that no income tax liability arises on this account, it has been decided to provide income-tax exemption to the amount received by a taxpayer for medical treatment from employer or from any person for treatment of Covid-19 during FY20 and subsequent years,” the Central Board of Direct Taxes (CBDT) stated in an announcement.
“It has been determined to supply income-tax exemption to ex-gratia cost obtained by relations of an individual from the employer of such individual or from different individual on the loss of life of the individual on account of Covid-19 throughout FY20 and subsequent years.
“The exemption shall be allowed without any limit for the amount received from the employer and the exemption shall be limited to Rs 10 lakh in aggregate for the amount received from any other persons,” it added.
Many taxpayers have obtained monetary assist from their employers and well-wishers for assembly their bills incurred for therapy of Covid-19.
Necessary legislative amendments for the choices shall be proposed in the end of time, it added.
In view of the impression of the Covid-19 pandemic, taxpayers are dealing with inconvenience in assembly sure tax compliances and likewise in submitting response to numerous notices.
It additionally prolonged the due date of assorted compliances, together with the final date of linkage of Aadhaar with PAN from June 30 to September 30, 2021 in addition to final date for cost underneath Vivad se Vishwas by 2-4 months.
The final date of cost of quantity underneath Vivad se Vishwas (with out extra quantity) which was earlier prolonged to June 30, 2021 is additional prolonged to August 31, 2021.Last date of cost underneath Vivad se Vishwas (with extra quantity) has been notified as October 31, 2021.
Easing compliance burden for taxpayers
In view of the impression of the Covid-19 pandemic, taxpayers are dealing with inconvenience in assembly sure tax compliances and likewise in submitting response to numerous notices. Among a number of due date extensions, the CBDT prolonged the final date of linkage of Aadhaar with PAN underneath, which was earlier prolonged to June 30, 2021 is additional prolonged to September 30, 2021.
