Government announces tax exemptions for Covid-19 treatment, death. Details here

The Centre has introduced tax exemptions to incentivise employers and members of the general public for helping individuals with Covid-19 therapy bills and in addition those that have misplaced their kin to the virus.

Minister of state within the finance ministry, Anurag Thakur confirmed the development. He mentioned, “Amount paid for treatment of an employee by an employer or to any another person in 2019-20 and subsequent will not be taxed.”

The finance ministry launched an in depth notification relating to the tax exemptions. As per the ministry, any quantity spent by anybody for the therapy of an worker or another person would develop into free from taxation. In easy phrases, the one who pays for the therapy and the beneficiary of the cost is not going to face tax legal responsibility

TAX EXEMPTION ON COVID-19 TREATMENT, DEATHS

The authorities mentioned that many taxpayers have obtained monetary assist from their employers and well-wishers for assembly their bills incurred in Covid-19 therapy. It has introduced that there might be no tax legal responsibility on such quantities.

“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 an employer or from any person for treatment of Covid-19 during FY 2019-20 and subsequent years,” mentioned the finance ministry’s notification.

Read | Covid-19: Higher health spending, lack of tax concessions to hit lakhs of households

The authorities additionally mentioned that ex-gratia obtained by members of the family of people who died attributable to Covid-19 might be exempt from earnings tax.

“Unfortunately, certain taxpayers have lost their lives due to Covid-19. Employers and well-wishers of such taxpayers had extended financial assistance to their family members so that they could cope with the difficulties arising due to the sudden loss of the earning member of their family,” mentioned a senior finance ministry official.

“In order to provide relief to the family members of such taxpayer, it has been decided to provide income-tax exemption to ex-gratia payment received by family members of a person from the employer of such person or from another person on the death of the person on account of Covid-19 during FY 2019-20 and subsequent years,” it added.

According to the notification, the exemption shall be allowed with none restrict for the quantity obtained from the employer, whereas the exemption shall be restricted to Rs 10 lakh in combination for the quantity obtained from some other individuals.

“Necessary legislative amendments for the above decisions shall be proposed in due course of time,” the ministry mentioned.

KEY DEADLINES EXTENDED

Besides announces the tax exemptions, the ministry has additionally prolonged some key tax compliance deadlines. “In view of the impact of the Covid-19 pandemic, taxpayers are facing inconvenience in meeting certain tax compliances and also in filing a response to various notices. In order to ease the compliance burden of taxpayers during this difficult time, reliefs are being provided,” mentioned the ministry.

The most necessary deadline extension entails the linking of PAN and the Aadhaar card. It has been prolonged by three months. Other than that, the time to spend money on residential home for tax deduction has been prolonged by greater than three months and the ‘Vivad se Viswas’ cost with out curiosity has been prolonged by 2 months from June 30 to August 31.

“The government instead of resorting to direct benefit has created incentives for people who want to help people and employees in the times of crisis,” mentioned a senior finance ministry official.

Speaking to India Today TV, a member of CII, mentioned, “The relaxation in timelines for compliance was needed as a large part of the country were under a high degree of restrictions and businesses and individuals were facing a hard time to meet the deadlines.”

The relaxations introduced are as follows:

1) Objections to Dispute Resolution Panel (DRP) and Assessing Officer below part 144C of the Income-tax Act, 1961 (hereinafter known as “the Act”) for which the final date of submitting below that part is 1st June, 2021 or thereafter, could also be filed inside the time supplied in that part or by thirty first August 2021, whichever is later.

2) The Statement of Deduction of Tax for the final quarter of the Financial Year 2020-21, required to be furnished on or earlier than thirty first May, 2021 below Rule 31A of the Income-tax Rules,1962 (hereinafter known as “the Rules”), as prolonged to thirtieth June, 2021 vide Circular No.9 of 2021, could also be furnished on or earlier than fifteenth July, 2021.

3) The Certificate of Tax Deducted at Source in Form No.16, required to be furnished to the worker by fifteenth June, 2021 below Rule 31 of the Rules, as prolonged to fifteenth July, 2021 vide Circular No.9 of 2021, could also be furnished on or earlier than thirty first July, 2021.

4) The Statement of Income paid or credited by an funding fund to its unit holder in Form No. 64D for the Previous Year 2020-21, required to be furnished on or earlier than fifteenth June, 2021 below Rule 12CB of the Rules, as prolonged to thirtieth June, 2021 vide Circular No.9 of 2021, could also be furnished on or earlier than fifteenth July, 2021.

5) The Statement of Income paid or credited by an funding fund to its unit holder in Form No. 64C for the Previous Year 2020-21, required to be furnished on or earlier than thirtieth June, 2021 below Rule 12CB of the Rules, as prolonged to fifteenth July, 2021 vide Circular No.9 of 2021, could also be furnished on or earlier than thirty first July, 2021.

6) The software below Section 10(23C), 12AB, 35(1)(ii)/(iia)/(iii) and 80G of the Act in Form No. 10A/ Form No.10AB, for registration/ provisional registration/ intimation/ approval/ provisional approval of Trusts/ Institutions/ Research Associations and many others., required to be made on or earlier than thirtieth June, 2021, could also be made on or earlier than thirty first August, 2021.

7) The compliances to be made by the taxpayers equivalent to funding, deposit, cost, acquisition, buy, building or such different motion, by no matter identify known as, for the aim of claiming any exemption below the provisions contained in Section 54 to 54GB of the Act, for which the final date of such compliance falls between 1st April, 2021 to twenty ninth September, 2021 (each days inclusive), could also be accomplished on or earlier than thirtieth September, 2021.

8) The Quarterly Statement in Form No. 15CC to be furnished by licensed seller in respect of remittances made for the quarter ending on thirtieth June, 2021, required to be furnished on or earlier than fifteenth July, 2021 below Rule 37 BB of the Rules, could also be furnished on or earlier than thirty first July, 2021.

9) The Equalization Levy Statement in Form No. 1 for the Financial Year 2020-21, which is required to be filed on or earlier than thirtieth June, 2021, could also be furnished on or earlier than thirty first July, 2021.

10) The Annual Statement required to be furnished below sub-section (5) of part 9A of the Act by the eligible funding fund in Form No. 3CEK for the Financial Year 2020-21, which is required to be filed on or earlier than twenty ninth June, 2021, could also be furnished on or earlier than thirty first July, 2021.

11) Uploading of the declarations obtained from recipients in Form No. 15G/15H through the quarter ending thirtieth June, 2021, which is required to be uploaded on or earlier than fifteenth July, 2021, could also be uploaded by thirty first August,2021.

12) Exercising of choice to withdraw pending software (filed earlier than the erstwhile Income Tax Settlement Commission) below sub-section (1) of Section 245M of the Act in Form No. 34BB, which is required to be exercised on or earlier than twenty seventh June, 2021, could also be exercised on or earlier than thirty first July, 2021.

13) Last date of linkage of Aadhaar with PAN below part 139AA of the Act, which was earlier prolonged to thirtieth June, 2021 is additional prolonged to thirtieth September, 2021.

14) Last date of cost of quantity below Vivad se Vishwas(with out extra quantity) which was earlier prolonged to thirtieth June, 2021 is additional prolonged to thirty first August, 2021.

15) Last date of cost of quantity below Vivad se Vishwas (with extra quantity) has been notified as thirty first October, 2021.

16) Time Limit for passing evaluation order which was earlier prolonged to thirtieth June, 2021 is additional prolonged to thirtieth September, 2021.

17) Time Limit for passing penalty order which was earlier prolonged to thirtieth June, 2021 is additional prolonged to thirtieth September, 2021.

18) Time Limit for processing Equalisation Levy returns which was earlier prolonged to thirtieth June, 2021 is additional prolonged to thirtieth September, 2021.

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