Tag: PAN-Aadhaar link

ITR submitting to small saving charges: 5 modifications in monetary panorama in July 2023

ITR final date to PAN Aadhaar hyperlink: After ushering in July 2023, an incomes particular person wants to contemplate some necessary modifications going down within the monetary panorama. These modifications consists of revenue tax return (ITR) final date as due date for ITR submitting ends on thirty first July 2023. Apart from this, deadline for PAN-Aadhaar hyperlink has ended on June 30, 2023. The Employees’ Provident Fund Organisation (EPFO) has prolonged the deadline for selecting increased pension to eleventh July 2023. In case, an incomes particular person was an EPFO member or EPS member previous to 1st September 2014, they’ve an opportunity to use for the facily in the event that they missed to use for a similar.

Here we record out 5 modifications within the monetary panorama going down in July 2023:

1] ITR final date: The due date for ITR submitting for the monetary 12 months 2022-23 or for the evaluation 12 months 2023-24 ends on thirty first July 2023. So, these incomes people who have to file their revenue tax return, they want to do that by the given due date. Failing to do that, might result in late price cost as much as ₹5,000. As per the revenue tax guidelines, in the event you miss to file revenue tax by due date however by the final date i.e. thirty first December 2023, the in that case you’ll have to pay late price as much as ₹5000 in case your revenue is greater than ₹5 lakh. In case, your annual revenue is lower than ₹5 lakh, then in that case you can be charged a late price of ₹1000.

2] PAN-Aadhaar hyperlink: The deadline for Aadhaar-PAN hyperlink has ended on thirtieth June 2023. But, these whose PAN and Aadhaar are nonetheless not seeded will be capable of file their respective ITR. But, the revenue tax division is not going to course of their return until they seed their PAN with Aadhaar. Those who didn’t seed their Aadhaar and PAN, their PAN card has change into inoperative and therefore they should seed their PAN with Aadhaar paying ₹1,000 penalty. Till thirtieth June 2023, the penalty was ₹500.

3] Chance for prime EPFO pension: The EPFO prolonged the deadline to use for prime pension from twenty sixth June to eleventh July 2023. So, EPFO and EPS members who joined previous to 1st September 2014 and missed to use for the upper pension, they’ve yet another likelihood to use for the upper pension by the given deadline in July 2023. Those who retired earlier than 1st September 2014 and had signed up for the upper pension possibility should validate the knowledge.

4] Taxation on abroad remittance: The Government of India (GoI) had earlier introduced to boost tax on outbound remittance from 5 per cent to twenty pr cent. However, it will now change into efficient from 1st October 2023. This means, you’ve a further three months to spend on unique abroad excursions. Investors investing in overseas have three extra months to speculate abroad paying 5 per cent tax on outbound remittance from India.

5] Small financial savings rate of interest: Central authorities has hiked the rates of interest of choose small financial savings schemes by as much as 70 bps for the July-September 2023. quarter. The rate of interest on the nationwide financial savings certificates (NSC) has been hiked by 70 foundation factors (bps), the best for any instrument on this revision. The rates of interest of schemes just like the 1-and 2-year submit workplace time deposit, 5-year recurring deposits have been hiked.

Mahila Samman Bachat Patra can now be opened in 12 public sector banks and 4 non-public sector banks. The scheme was introduced within the Union Budget this 12 months, and was solely out there via submit workplaces.

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Updated: 01 Jul 2023, 10:34 AM IST

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July 1, 2023
PAN-Aadhaar hyperlink to ITR submitting: 5 cash duties to finish in March 2023

Deadline for PAN-Aadhaar linking is ending on thirty first March 2023 which means should you fail to hyperlink you PAN card along with your 12-digit distinctive identification quantity, your PAN would change into inoperative from subsequent month. Apart from this, finish of march would imply finish of present monetary yr as properly. So, there are a number of different monetary duties like, submission of up to date earnings tax return (ITR) submitting for AY 2020-21, advance tax cost and tax saving investments, which must be accomplished by finish of this month. In truth, final date for advance tax cost is fifteenth March 2023 and it must be performed on a pressing foundation.

Here we listing out prime 5 cash duties that it is best to full in March 2023 with given deadlines:

1] PAN-Aadhaar hyperlink: After giving sequence of extension to Aadhaar-PAN linking deadline, the Income Tax Department set thirty first March 2023 as new deadline for seeding the 2 vital KYC paperwork. As per the Income Tax Department, one’s PAN card would change into inoperative from 1stt April 2023, if it’s not connected with one’s Aadhaar card. PAN-Aadhaar linking is free until thirty first March 2023 whereas from 1st April 2023, it might incur PAN Aadhaar hyperlink price of ₹1,000.

2] Submission of up to date ITR: The final date for submission of up to date ITR for FY 2019-20 or AY 2020-21 is thirty first March 2023. It needs to be famous by taxpayers that they will not be capable to file replace ITR in the event that they fail to fulfill this deadline of thirty first March 2023.

3] Advance tax cost: As per the Income Tax Department, the final instalment of advance tax for FY23 have to be submitted by fifteenth March 2023. According to the Income-Tax Act, an individual should pay advance tax if their projected tax legal responsibility is ₹10,000 or extra after Tax Deducted at Source (TDS) deductions.

4] Tax saving funding: As finish of March means finish of the monetary yr too, an incomes particular person whose annual earnings is greater than primary earnings in earnings tax slab wants to take a look at funding avenues like Public Provident Fund (PPF), ELSS Mutual Fund, tax saving financial institution FD, and many others.

5] Tax saving insurance coverage: Tax and funding consultants all the time counsel an incomes particular person to take life insurance coverage apart from funding choices as a result of it’s performed in your dependents when you’re not current to taka care of your loved ones members. So, life insurance coverage needs to be handled in another way than an funding choice. However, insurance coverage do assist an incomes particular person to say earnings tax rebate. However, as per the brand new earnings tax rule getting carried out from 1st April 2023, proceeds from life insurance coverage insurance policies over the annual premium of ₹5 lakh could be taxable. But, should you purchase an insurance coverage coverage with over ₹5 lakh annual premium earlier than or on thirty first March 2023 wouldn’t fall below the brand new earnings tax rule.

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March 11, 2023
ITR kind choice to financial institution validation: 5 errors {that a} taxpayer ought to keep away from

ITR submitting: The due date for earnings tax return (ITR) submitting for the monetary yr (FY) 2021-22 and evaluation yr (AY) 2022-23 is thirty first July 2022. So, an incomes particular person could be busy assessing their financials and paperwork associated to them. However, whereas submitting their earnings tax return, it has been discovered that an incomes particular person commit some widespread mistake that results in rejection of their ITR, earnings tax discover or delay in ITR refund.

Speaking on the complexities {that a} taxpayer wants to grasp, Sujit Bangar, Founder at taxbuddy.com mentioned, “Income tax return filing has elusive complexity. We may be thinking that ITR is filed correctly till we get any notice for defective filing of income tax return. Most of these mistakes are due to wrong interpretation of tax provisions or due to ignorance.”

Here we record out 5 widespread errors {that a} taxpayer commit throughout ITR submitting:

1] Not taking credit score for tax deduction: Many instances we get much less refund than anticipated. Sometimes we get demand notices as an alternative of refund due. And widespread cause for this isn’t getting due credit score for TDS deducted.

“Most common mistake users do is that they don’t take credit of tax deducted under proper head of income. For example , If I have professionals receipts along with salary and while filing I have clubbed professional income as income from salary, I will get notice from tax department,” mentioned Sujit Bangar of taxbuddy.com.

2] Speculative earnings vs common enterprise earnings: Major errors customers do is in respect of set off of loss from speculative transactions like day buying and selling transactions. Sometimes we have now loss from speculative earnings and revenue from common share buying and selling or F&O buying and selling.

“Loss from speculative transactions cannot be set off against business income like F&O or regular trading in shares,” Sujit Bangar mentioned.

3] Bank validation: Third most typical cause for delay in ITR refunds is points in checking account validation. One ought to guarantee PAN and AADHAR are linked. It helps in financial institution validation for sooner refunds and in e-verification for fast processing.

4] Incorrect ITR kind choice: Forth widespread mistake is in deciding on ITR kind. If one has a couple of home property, one can not file ITR-1, for instance. Therefore, right ITR kind must be ascertained and filed.

Aarti Raote, Partner at Deloitte India mentioned, “The ITR-1 is a simple tax return that can be filed by a resident tax payer having total income of not more than ₹50 lakhs and has income reported from sources like salary, income from other sources and only one house property. One needs to note that the return cannot be used by a director of a company or has tax deferral for ESOP of startups or an individual having agricultural income more than ₹5000 or has capital gains income.”

5] Tax cannot be saved past kind 16: Salaried people have main false impression in thoughts that tax can’t be saved past kind 16. They file ITR by counting on tax computation of kind 16 with out giving recent take a look at tax deductions.

“We should avoid this mistake. Many things we do in regular course of life and these things have tax saving incidence. For example, tuition fees of kids or RTPCR test (80D deduction of ₹5000),” mentioned Sujit Bangar of Taxbuddy.com.

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July 11, 2022
ITR submitting to PAN-Aadhaar hyperlink: 5 cash duties it is best to full by thirty first March

With the top of present monetary yr, deadline for a lot of vital money-oriented duties like belated or revised revenue tax return (ITR) submitting, PAN-Aadhaar hyperlink, checking account KYC, KYC of demat and buying and selling account, and many others. would additionally finish. So, an incomes particular person is suggested to know these vital money-oriented duties and full them on or earlier than thirty first March 2022.

Here we checklist out prime 5 cash duties that one ought to accomplished on or earlier than thirty first March 2022:

1] Belated or revised ITR submitting: Deadline for belated revenue tax return or ITR submitting for AY2021-22 is thirty first March 2022. Hence, an incomes particular person who could not file its ITR by the given due date ought to file its belated ITR by thirty first March 2022.

Likewise, final date for submitting belated or revised ITR for FY2020-21 is thirty first March 2021. In case, an incomes particular person has filed its late ITR on-line, she or he has the choice to edit it on or earlier than thirty first March 2022. So, being a taxpayer, should you discover any mistake in your ITR, you possibly can nonetheless edit it by the given deadline of thirty first March 2022.

2] PAN-Aadhaar hyperlink: Aadhaar PAN hyperlink final date is thirty first March 2022. If you fail to hyperlink your PAN with you Aadhaar card, then in that case your PAN card will inoperative or invalid. Under part 272B, carrying an invalid PAN card could result in ₹10,000 penalty. Also, one’s TDS on financial institution deposit curiosity will get doubled. So, it is best to instantly examine whether or not you PAN and Aadhaar card are linked or not. In case, it’s not linked, kindly hyperlink them on or earlier than thirty first March 2022.

3] KYC replace of checking account: On account of rising Omicron virus menace, the Reserve Bank of India (RBI) prolonged the final date for checking account KYC replace from thirty first December 2021 to thirty first March 2022. Thus, checking account holders are suggested to finish its KYC replace on or earlier than thirty first March 2022 in any other case their checking account may get freezed.

4] Linking small financial savings scheme with checking account/submit workplace financial savings: The Department of Post lately issued a round that curiosity of on MIS/SCSS/TD accounts shall be credited solely in account holder’s PO Savings Account or Bank Account from 1st April 2022. So, one has to hyperlink one’s small saving scheme accounts with submit workplace account and checking account by thirty first March 2022 to proceed getting curiosity credit score on time.

5] KYC of demat and buying and selling account: As per the SEBI round issued in April 2021, NSDL and CDSL are required to make sure that 6 KYC attributes — identify, tackle, PAN, legitimate cell quantity, legitimate e-mail ID and revenue vary — are up to date within the current demat and buying and selling accounts. The deadline for KYC of demat and buying and selling account can also be falling on thirty first March 2022.

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March 29, 2022
PPF to PAN-Aadhaar hyperlink: 8 cash duties that you must full by thirty first March

With the tip of March 2022, deadline for varied money-related duties may also finish. PAN-Aadhaar linking, revised or belated ITR submitting, checking account KYC replace, minimal funding required in small saving schemes like Public Provident Fund (PPF), National Pension System (NPS), and many others are among the vital cash duties that one wants to finish on or earlier than thirty first March 2022.

Here we record out 8 vital cash job that an incomes particular person should full on or earlier than thirty first March 2022:

1] Belated or revised earnings tax return (ITR) submitting: Deadline for belated ITR submitting for AY2021-22 is thirty first March 2022. Thus, taxpayers who did not file ITR by the given due date are suggested to file their belated earnings tax return by thirty first March 2022.

Similarly, final date for submitting belated or revised ITR for FY2020-21 is thirty first March 2021. In case, a taxpayer has filed its late ITR on-line, she or he can nonetheless edit it on or earlier than thirty first March 2022. So, being a taxpayer, should you notices any mistake in your e-filed ITR, you’ll be able to nonetheless edit that mistake by the given deadline of thirty first March 2022.

2] PAN-Aadhaar linking: Deadline for seeding one’s PAN with Aadhaar card is thirty first March 2022. Failing to satisfy this deadline will result in one’s PAN card changing into inoperative or invalid. Under part 272B, carrying an invalid PAN card could result in ₹10,000 penalty. Also, one’s TDS on financial institution deposit curiosity will get doubled.

3] Bank account KYC replace: On rising Omicron menace on the finish of yr 2021, the Reserve Bank of India (RBI) prolonged the deadline for checking account KYC replace from thirty first December 2021 to thirty first March 2022. So, checking account holders ought to full its KYC replace by new deadline in any other case their checking account would possibly get freezed.

4] Investments to cut back earnings tax outgo: End of March will probably be finish of present monetary yr as nicely. So, a taxpayer is suggested to take a look at one’s tax saving investments and make sure that they’ve maximised their funding in tax saving devices like Public Provident Fund (PPF), National Pension System (NPS), ELSS Mutual funds, and many others.. If there nonetheless some scope left for tax saving funding, they should benefit from this chance by March thirty first, 2022.

5] Linking small financial savings scheme with checking account/put up workplace financial savings: The Department of Post has issued discover that curiosity of on MIS/SCSS/TD accounts will probably be credited solely in account holder’s PO Savings Account or Bank Account from 1st April 2022. This means one has to hyperlink one’s small saving scheme accounts with put up workplace account and checking account to proceed getting curiosity credit score on time.

The newest round says, ““Interest on MIS/SCSS/TD accounts will be credited only in account holder’s PO Savings Account or Bank Account with effect from 01.04.2022. In case an account holder is not able to link his/her Savings Account with MIS/SCSS/TD accounts up to 31.03.2022 and interest is credited in MIS/SCSS/TD sundry office accounts, the outstanding interest should be paid only through credit in PO Savings Account or by Cheque. Interest payment in cash shall not be allowed from MIS/SCSS/TD sundry office accounts, the outstanding interest should be paid only through credit in PO Savings Account or by Cheque. Interest payment in cash shall not be allowed from MIS/SCSS/TD sundry office account w.e.f. 01.04.2022.”

6] PM Kisan KYC replace: e-KYC has turn into obligatory for PM Kisan registered farmers. So, registered PM Kisan farmers should replace their KYC both on-line or offline earlier than thirty first March 2022. Failing to satisfy this deadline will result in non-repayment of subsequent PM Kisan installment.

7] Maintaining minimal contribution on PPF, NPS account: For lowering earnings tax outgo, an incomes particular person invests in PPF and NPS account. But, earlier than finish of March 2022, one wants to make sure whether or not it has invested minimal required cash in a single monetary yr or not. Minimum annual deposit in PPF account is ₹500 whereas minimal annual deposit required in Tier-1 NPS account is ₹1,000 in single monetary yr.

8] KYC for demat and buying and selling account: According to the SEBI round issued in April 2021, NSDL and CDSL are required to make sure that six KYC attributes — identify, tackle, PAN, legitimate cellular quantity, legitimate e-mail ID and earnings vary — are up to date within the present demat and buying and selling accounts.

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March 26, 2022
ITR submitting to Aadhaar-PAN hyperlink — prime cash duties it’s best to full by March 31

With the top of this month, a variety of money-related deadlines would finish together with present monetary 12 months FY2021-22. So, earnings tax payers and incomes people are suggested to cross-check about their necessary cash duties like earnings tax return (ITR) submitting to PAN-Aadhaar linking, which they should full by thirty first March 2022.

Here we checklist out necessary cash process that an incomes particular person should full by thirty first March 2022:

1] Revised or belated ITR submitting: Deadline for belated ITR submitting for AY2021-22 is thirty first March 2022. Therefore, an incomes particular person who did not file its ITR by given due date are suggested to file their belated ITR by the given final date i.e. thirty first March 2022.

Likewise, final date for submitting belated or revised ITR for FY2020-21 is thirty first March 2021. In case, an incomes particular person has filed its late ITR on-line, she or he can nonetheless edit it on or earlier than thirty first March 2022. So, being a taxpayer, in the event you notices any mistake in your e-filed ITR, you may nonetheless edit that mistake by the given deadline of thirty first March 2022.

2] PAN-Aadhaar linking: thirty first March 2022 is deadline for seeding one’s PAN with Aadhaar card as nicely. Failing to satisfy this deadline will result in one’s PAN card changing into inoperative or invalid. Under part 272B, carrying an invalid PAN card could result in ₹10,000 penalty. Also, one’s TDS on financial institution deposit curiosity will get doubled.

3] KYC replace for financial institution accounts: On account of rising Omicron risk on the finish of 12 months 2021, the Reserve Bank of India (RBI) needed to lengthen deadline for checking account KYC replace from thirty first December 2021 to thirty first March 2022. So, checking account holders are suggested to finish its KYC replace by thirty first of March 2022 in any other case their checking account would possibly get freezed.

4] Tax saving funding schemes: Investing in sure tax saving choices like Public Provident Fund (PPF), National Pension System (NPS), ELSS Mutual funds, and so forth. allows an earnings tax payer to say exemption profit on one’s funding. So, a taxpayer is suggested to have a look at one’s tax saving investments and be sure that they’ve maximised their funding in such tax saving funding devices. If there nonetheless some scope left for tax saving funding, they should reap the benefits of this risk by March thirty first, 2022.

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March 20, 2022
ITR submitting to PAN-Aadhaar hyperlink: Top 5 cash duties to finish this month

March is not only finish of the monetary 12 months, however many necessary deadlines which have direct connection together with your cash issues, are going to finish this month. Last date for submitting belated or revised earnings tax return (ITR), PAN-Aadhaar hyperlink, Bank account KYC,and so on. are a few of them. Hence an incomes particular person is suggested to control these deadline and full these cash duties earlier than the deadline.

Here we record out 5 necessary cash duties that one wants to finish this month:

1] Belated or revised ITR: The final date for submitting belated ITR for AY2021-22 is thirty first March 2022. So, these incomes people who missed to file their ITR by the given due date are suggested to file their earnings tax return by the given final date for ITR submitting.

Similarly, deadline for submitting belated or revised ITR for FY2020-21 is thirty first March 2021. If an incomes particular person has e-filed its late ITR, she or he can nonetheless edit it on or earlier than thirty first March 2022. So, if a taxpayer notices any mistake in a single’s e-filed ITR, it could possibly nonetheless right that mistake on-line on or earlier than thirty first March 2022.

2] Aadhaar-PAN hyperlink: Deadline to hyperlink one’s PAN with Aadhaar is thirty first March 2022. Those whose PAN and Aadhaar isn’t linked, they’re suggested to do that by the given deadline. If a PAN card holders fails to fulfill this deadline, then its PAN card will change into invalid main to varied financial losses and penalty. Under part 272B, carrying an invalid PAN card could result in ₹10,000 penalty. Apart from this, one’s TDS on financial institution deposit curiosity will get doubled.

3] Bank account KYC replace: Earlier, deadline for checking account KYC was thirty first December 2021. But, because of rising menace of Omicron instances in India, the Reserve Bank of India (RBI) prolonged the deadline for checking account KYC replace from thirty first December 2021 to thirty first March 2022. Failing to fulfill the deadline could result in freezing of your checking account.

4] Advance tax installment: As per Section 208 of the earnings tax act, each taxpayer whose estimated tax legal responsibility if ₹10,000 or extra, will pay advance tax, which is paid in 4 installment. Deadline for first installment falls on 15 June, second on fifteenth September, third on fifteenth December and fourth on fifteenth March in each fiscal. So, these taxpayers who filed advance tax installments in earlier quarters, they’re suggested to notice that deadline for submitting final installment of advance tax is fifteenth March 2022.

5] Tax saving investments: There is only one month left for an incomes particular person to finish its tax saving train. So, one must make it possible for it has deposited in tax saving funds like Public Provident Fund (PPF), ELSS mutual funds, National Pension System or NPS, and so on. However, you will need to observe that if an incomes particular person is unable to save lots of then a few of its spends underneath heads like tuition charge of kid, principal reimbursement on dwelling mortgage, and so on. present tax profit to an earnings taxpayer.

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March 2, 2022
PAN card holders have a possibility to save lots of ₹1000. Details right here

PAN Aadhaar hyperlink: PAN card holders are suggested to hyperlink their Permanent Account Number (PAN) with their Aadhaar card quantity by thirty first March 2021. Failing to satisfy this Aadhaar PAN hyperlink final date will now result in late charge of ₹1,000. According to the lately inserted Section 234H of Income Tax Act, if a PAN card holders fails to seed one’s PAN with Aadhar card quantity on or earlier than the given deadline, shall be liable to pay as much as ₹1,000 late charge. The part was inserted in Budget Session 2021 by a Finance Bill.

As per the newly inserted Section 234H of the Income Tax Act, “Without prejudice to the provisions of this Act, where a person is required to intimate his Aadhaar number under sub-section (2) of section 139AA and such person fails to do so on or before such date, as may be prescribed, he shall be liable to pay such fee, as may be prescribed, not exceeding one thousand rupees, at the time of making intimation under sub-section (2) of section 139AA after the said date.”

Apart from ₹1,000 charge for PAN Aadhaar linking, there are numerous different financial losses {that a} PAN card holder cannot afford to overlook out. Failing to satisfy the deadline for Aadhaar PAN linking, one’s PAN card would grow to be invalid which means a person will not be capable to put money into mutual funds, shares, open a checking account, and so forth. the place furnishing one’s PAN card is should.

Under Section 272B of the Income Tax Act, if an individual furnishes an invalid PAN card, the Assessing Officer could direct that such particular person shall pay, by the use of penalty, a sum of ₹10,000. Also, an invalid PAN card holder will not be capable to recordsdata earnings tax return (ITR).

So, it is necessary for a PAN card holder to seed its PAN with its Aadhaar card quantity and keep away from any type of penalty after failing to satisfy PAN Aadhaar linking deadline.

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January 8, 2022
PAN card holders could get fined as much as ₹10,000 after thirty first March. Details right here

Aadhaar PAN hyperlink: PAN card holders are suggested to hyperlink their Permanent Account Number (PAN) with their Aadhaar card quantity by thirty first March 2022. Failing to do that by given deadline won’t solely result in their PAN card changing into invalid however it will require a payment of ₹1,000 for PAN Aadhaar linking. The drawback of the PAN card holder will not finish right here solely as the person will not have the ability to put money into mutual funds, shares, open a checking account, and many others. the place furnishing a PAN card is should. Apart from this, if the individual furnishes the PAN Card, which is not any extra legitimate, then below Section 272N of the Income Tax Act 1961, the Assessing Officer could direct that such individual shall pay, by the use of penalty, a sum of ten thousand rupees.

Speaking on the significance of PAN Aadhaar hyperlink deadline; Amit Gupta, MD at SAG Infotech — a SEBI-registered earnings tax resolution supplier firm stated, “Earlier, the rules pertaining to the Aadhaar PAN linking had no provision of penalty. According to the new law, failure to link the two IDs would result in the PAN becoming invalid, which further means that one cannot perform financial transactions requiring PAN details. These include filing an income tax return and opening a bank account. Also, the said individual might have to pay a higher TDS amount, plus a penalty of ₹10,000 will be imposed as per section 272B of the Income Tax Act, if the person fails to quote PAN as and when needed.” He stated that furnishing an invalid PAN would additionally result in the penalty of ₹10,000. So, it is essential for a PAN card holder to seed its PAN card with its Aadhaar card and keep away from any form of penalty after failing to satisfy PAN Aadhaar linking deadline.

PAN card holders are additionally suggested to notice that failing to satisfy PAN Aadhaar linking deadline, they should pay as much as ₹1,000 penalty for late seeding of PAN with Aadhaar. As per the newly inserted Section 234H of Income Tax Act (in March 2021 by way of Finance Bill), “Without prejudice to the provisions of this Act, where a person is required to intimate his Aadhaar number under sub-section (2) of section 139AA and such person fails to do so on or before such date, as may be prescribed, he shall be liable to pay such fee, as may be prescribed, not exceeding one thousand rupees, at the time of making intimation under sub-section (2) of section 139AA after the said date.”

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January 4, 2022
Aadhaar-PAN linkage deadline prolonged to Sept 30: Tax aid on ex-gratia for Covid deaths, assist for therapy prices

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.

June 26, 2021