5 massive tax reliefs introduced by the federal government for taxpayers

In order to supply reduction to the taxpayers dealing with the hardship as a consequence of covid 19, the federal government has introduced sure tax advantages and compliance reliefs for the taxpayers. Here are a few of the essential bulletins that it is best to find out about.

No tax on the quantity obtained by workers from employers or every other particular person for covid remedy. “Many taxpayers have obtained monetary assist from their employers and well-wishers for assembly their bills incurred for remedy of Covid-19. In order to make sure that no earnings tax legal responsibility arises on this account, it has been determined to supply income-tax exemption to the quantity obtained by a taxpayer for medical remedy from employer or from any particular person for remedy of Covid-19 throughout FY 2019-20 and subsequent years” said the press release.No tax on ex-gratia payment received by the family member of the deceased employee due to covid. There will also be no tax on financial help received from relatives and friends till the aggregate amount is ₹10 lakh. “This is a welcome and much needed relief brought in by the CBDT. The taxpayers genuinely faced several difficulties whenever they were hospitalised or otherwise subject to rigorous medication. COVID treatment has also turned out to be costly for quite a lot of people. The exemption for amount received for medical treatment will provide some respite and we hope that many taxpayers would get benefitted by this. The exemption of ex-gratia amount received on death is also a good step and will provide some respite to the effected families,” mentioned Amit Maheshwari, Tax Partner, AKM Global, a tax and consulting agency.The authorities has prolonged the deadline for PAN and Aadhaar linking to 30 September from 30 June. “Many individuals had been dealing with glitches whereas linking their PAN with Aadhaar on the new Income-tax e-filing portal, subsequently, the federal government has now additional prolonged this date to thirtieth September 2021 from thirtieth June, 2021,” said Tarun Kumar, a Delhi-based chartered accountant.The deadline for making payment (without additional amount) under Vivad Se Vishwas scheme has been extended till 31 August while the last payment date with additional amount has been extended till 31 October. “The extension of various due dates, be it for PAN-Aadhaar linking, for payment of tax/ penalty under Vivaad-se-Vishwas scheme, completion of assessment proceedings, completion of penalty proceedings, registration of charitable trusts and institutions for income tax exemption, etc. will provide additional time, both to taxpayers as well as tax authorities for meeting the timeline,” mentioned Shailesh Kumar, Partner, Nangia & Co LLP.Tax compliance deadline for saving capital features tax prolonged. So tax compliance deadline falling between 1 April, 2021, and 29 September 2021, for making funding, deposit, fee, acquisition, buy, building or such different motion to avoid wasting tax below provisions contained in Section 54 to 54GB of the Income Tax Act, has been prolonged until 30 September 2021. “So, suppose for those who had been required to make a funding in 54EC bonds to avoid wasting capital features on home property and the deadline for a similar was 30 June, then now you can make the funding until 30 September,” mentioned Kumar. Subscribe to Mint Newsletters * Enter a legitimate electronic mail * Thank you for subscribing to our publication.

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