The government extended the timelines of submitting tax compliances in the middle of COVID-19The government extended due dates for numerous income tax compliances on Friday, June 25, and stated that the quantity paid by a company to employees for COVID-19 treatment would be excused from tax, in order to supply relief amid the COVID-19 pandemic.
The payment received from an employer by member of the family in case of the death of a worker due to COVID-19 would likewise be exempt from income tax, according to a declaration by the Ministry of Finance.
(Likewise Read: Easing Income Tax Norms, Centre Enables Cash Payment Of 2 Lakh For COVID Treatment )Based on the statement, this indicates that any quantity spent by a person for the treatment of an employee would end up being devoid of taxation.
The person who pays for the treatment and the beneficiary of the payment will not face any tax liability.Tax exemptions on COVID-19 Treatment, Deaths: A number of taxpayers got financial aid from their employers or well-wishers for meeting their expenses incurred in COVID-19 treatment, stated the statement, adding that, income tax will be exempted on the quantity gotten by a taxpayer from an employer or from any person.The employers of those taxpayers who passed away due to COVID-19 had extended the monetary help to their family members, in order to offer relief amidst the difficulties due to the unexpected loss of an earning member of the household.
To supply more relief to those member of the family, the federal government excused the earnings tax on the financial aid received from the taxpayer's employer or from any other person.The federal government has actually permitted the exemption without any limitation for the amount gotten from the company and it will be restricted to Rs.
10 lakh in aggregate for the amount gotten from any other persons.Extension of Deadlines on Tax Compliances: Apart from the tax exemptions, the federal government likewise extended some of the significant tax compliance deadlines, to provide relief to taxpayers in the middle of the COVID-19 pandemic.Among the most crucial deadline extension, the linking of PAN card and Aadhaar card is extended by another 3 months - i.e., till September 30, 2021.
This is the third such extension for connecting the two recognition files amid the pandemic.
(Likewise Check Out: Due Date To Connect Aadhaar Card-PAN Card Extended: Here's How To Do It Online ).
Other than the last date of PAN-Aadhaar card connecting, the time to invest in a residential home for tax deduction is also extended by more than 3 months and the 'Vivad se Viswas' payment without interest is extended by 2 months from June 30 - August 31.
The last date to submit the TDS return or tax deducted at source is extended from June 30 to July 15, 2021.
The due date to submit the equalization levy is extended from June 30 to July 31, 2021.
Taxpayers intending to claim the exemption in regard of sums received during FY 2019-20 would require to modify their return of earnings to claim refund of tax paid.
It is anticipated that government may also extend the due date for filing a modified return for Evaluation Year 2020-21 ...
Taxpayers will need to carefully read the fine print to inspect the appropriate due dates as diverse set of dates have been recommended under different sections, stated Kumarmanglam Vijay, Partner, J Sagar Associates.Meanwhile, earlier last month, the Income Tax department revealed that hospitals, nursing house, COVID care centres, or comparable other medical centers providing treatment for coronavirus could accept money payment of 2 lakh or more till May 31, 2021, after receiving a legitimate identity proof such as PAN card or Aadhaar of the client and the payee.