10 huge tax reliefs introduced by the federal government for taxpayers
The authorities has introduced a number of measures to ease earnings tax compliance and extra reduction measures for taxpayers in the course of the coronavirus pandemic. From additional extension of timelines of compliances beneath Income Tax Act to tax exemption for expenditure on Covid therapy and ex-gratia obtained on demise as a result of coronavirus. Here the ten huge bulletins made by the govt. for the taxpayers.
1) Many taxpayers have obtained monetary assist from their employers and well-wishers for assembly their bills incurred for therapy of Covid-19. In order to make sure that no earnings tax legal responsibility arises on this account, it has been determined to offer an income-tax exemption to the quantity obtained by a taxpayer for medical therapy from the employer or from any individual for therapy of Covid-19 throughout FY 2019-20 and subsequent years.
2) Certain taxpayers have misplaced their life as a result of Covid-19. In order to offer reduction to the relations of such taxpayer, it has been determined to offer an income-tax exemption to ex-gratia cost obtained by relations of an individual from the employer of such individual or from one other individual on the demise of the individual on account of Covid-19. “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 ₹10 lakh. These benefits are available for FY 2019-20 and beyond,” Saraswathi Kasturirangan, Partner, Deloitte India mentioned.
3) PAN Aadhaar linking: The authorities has prolonged the deadline for PAN and Aadhaar linking to 30 September from 30 June
4)TDS: The Certificate of Tax Deducted at Source (TDS) required to be furnished to the worker by fifteenth June 2021 perhaps furnished on or earlier than thirty first July 2021.
5) Form 16 is required to be furnished to the worker. TDS in Form No.16, required to be furnished to the worker by the employer has been prolonged until July 31, from July 15, 2021.
6) The deadline for making cost (with out further quantity) beneath Vivad Se Vishwas scheme has been prolonged until 31 August whereas the final cost date with further quantity has been prolonged until 31 October.
7)The compliances to be made by the taxpayers akin to funding, deposit, cost, acquisition, buy, building or such different motion, by no matter identify referred to as, for the aim of claiming any exemption could also be accomplished on or earlier than thirtieth September 2021
8) In one other reduction to earnings taxpayers, an extension of three months for a tax deduction for folks investing in residential homes has been granted. For tax deduction extension for greater than three months, the funding required to be made on or after April 1, can now be made as much as September 30.
9) Uploading of the declarations obtained from recipients in Form No. 15G/15H in the course of the quarter ending thirtieth June 2021, which is required to be uploaded on or earlier than fifteenth July 2021, perhaps uploaded by thirty first August 2021. “The payers of the income like interest, dividends etc. receive forms 15G and 15H from the recipient of such income. The payers in turn are required to upload one copy of such forms to the income tax department by 7 of next month. It does not affect the common man,” says tax skilled Balwant Jain.
10) Individuals can now file their tax returns for earnings earned in the course of the monetary 12 months 2020-21 by September 30. The Central Board of Direct Taxes (CBDT) has additionally prolonged the ITR submitting deadline for firms to November 30. “It is anticipated that Government might also lengthen the due date for submitting a revised return for Assessment Year 2020-21. Various deadlines as regards filings by taxpayers and evaluation too have been prolonged. Taxpayers shall should rigorously learn the high quality print to test the appliance deadlines as a various set of dates have been prescribed beneath totally different sections,” mentioned Kumarmanglam Vijay, Partner, J Sagar Associates.
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