Government Announces Tax Relief on Covid Treatment Expenses, Extends Deadlines

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New Delhi: The Center on Friday announced an income tax exemption on the amount received by a taxpayer from their employer or anyone else for treatment of Covid-19 in the 2019-2020 fiscal year and years following.

The government has also relieved family members of a Covid-plagued taxpayer by granting an income tax exemption on the ex gratia payment received by them from the employer or anyone else.

The exemption will be allowed without any limit for the amount received from the employer, while the exemption will be limited to Rs 10 lakh in total for the amount received from any other person, according to a statement from the Ministry of Finance.

This exemption will be allowed without any limit for the amount received from the employer, while the exemption will be limited to Rs 10 lakh in total for the amount received from any other person, according to a statement from the Ministry of Finance.

The legislative changes necessary for the above decisions will be proposed in due course, the statement added.

In addition, the ministry extended the deadlines for various tax obligations in order to address the issue of inconvenience faced by taxpayers due to the pandemic. He had previously extended the filing deadlines for tax returns and corporate income tax returns.

Accordingly, the objections to the Dispute Resolution Panel (DRP) and the Valuation Agent under Section 144C of the Income Tax Act, 1961, for which the latest filing date in under this section was on or after June 1, 2021, may now be filed within the time specified in this section or no later than August 31, 2021, whichever is later.

In addition, the tax deduction statement for the last quarter of fiscal year 2020-21, which was to be provided no later than May 31, 2021, and which was extended until June 30, 2021 earlier, can now be provided no later than July 15, 2021.

Likewise, the withholding tax certificate in Form No.16, which must be provided to the employee before June 14, 2021 under Rule 31, as extended until July 15, 2021 according to the Circular No.9 of 2021, can be provided on or before July 31, 2021, the finance ministry said in the statement.

The government also extended Aadhaar’s last liaison date with the PAN under section 139AA of the law to September 30, 2021.

The last payment date of the amount under “Vivad se Vishwas” (without additional amount), which had previously been extended until June 30, 2021, has been further extended until August 31, 2021.

Likewise, the last date of payment of the amount under “Vivad se Vishwas” (with additional amount) was notified on October 31, 2021.

The deadline for passing the assessment order, which was previously extended to June 30, 2021, has been extended to September 30, 2021.

the deadline for issuing a sanction order, which was previously extended to June 30, 2021, has been extended to September 30, 2021.

To further ease compliance measures, the Ministry of Finance extended the deadline for processing equalization levy declarations, which had previously been extended from June 30, 2021 to September 30, 2021.

The statement of income paid or credited by an investment fund to its unitholder in form No. 64D for the previous year (2020-2021), to be provided no later than June 15, 2021 under the rule 12CB, was extended on or before July 15, 2021.

The statement of income paid or credited by an investment fund to its unitholders in form No. 64C for the previous year (2020-2021), which must be provided no later than June 30, 2021, can now be be provided no later than July. December 31, 2021.




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