COVID-19 relief: center exempts from tax on COVID-19 treatment, death

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The Center has exempted from tax the costs incurred during the COVID treatment of an employee – at the expense of employers or any other person – for fiscal year 20 and over.

The government has also extended the deadlines for several tax compliances. Additionally, ex gratia payments received from employers by families of employees who have lost their lives due to COVID-19 would be exempt from income tax in FY20 and beyond, announced on Friday. the Ministry of Finance.

The limit for such tax exempt compensation would be Rs 10 lakh if ​​received from any other person. This decision is a relief for many taxpayers affected by the coronavirus pandemic. The ministry added that several taxpayers have received financial support from their employers and supporters to bear the costs incurred during COVID treatment.

“Given the impact of the COVID-19 pandemic, taxpayers face inconvenience in complying with certain tax obligations and also in responding to various notices. In order to alleviate the burden of compliance for taxpayers in difficult times, relief is planned, “the Central Commission for Direct Taxes (CBDT) said in a statement.

The tax department said many taxpayers have received financial assistance from their employers and supporters to cover their expenses incurred for the treatment of COVID-19.

“In order to ensure that no income tax is due, it was decided to grant an income tax exemption to the amount received by a taxpayer for medical treatment from the employer. or any person for the treatment of COVID-19 during the fiscal year 2019 -20 years and the following years “, he added.

In the event of taxation of capital gains resulting from tractor ownership of a residential house, CBDT said, for tax relief, the reinvestment deadline would be September 3, 2021, for such capital gains. values.

Article 54 of the Income Tax Act provides that in the event of a capital gain on the tractor of a residential property, this capital gain may be exempt from tax if the taxpayer invests the amount of the capital gain in another residential property within 2 years (when buying a new house) or within 3 years (when building a house) from the date of purchase of the tractor of the original ownership of the house.

The CBDT circular now provides that if such a 2/3 year period expires between April 1, 2021 and September 29, 2021, it will be extended until September 30, 2021.

In addition, the payment deadline under the Vivad Se Vishwas Direct Tax Dispute Resolution Scheme has been extended by two months until August 31.

However, taxpayers have the option of making payments until October 31 with an additional amount of interest.
The deadline for the PAN-Aadhaar link has also been extended by three months until September 30, 2021, while the same date for the provision of the Withholding Tax Certificate (TDS) on Form 16 to employees by employers was extended until July 31. July 15, 2021.

The deadline for submitting the TDS statement for the last quarter (January-March) 2020-2021 has been extended to July 15, from June 30, 2021.

The quarterly statement on Form 15CC to be provided by an authorized broker for payments made for the June quarter must be provided no later than July 31.

In addition, the deadline for providing the declaration of equalization deduction in form n ° 1 for the 2020-2021 fiscal year has been extended by one month until July 31, 2021, while for the processing of debit declarations of equalization, the deadline was extended by 3 months. until September 30, 2021.

With PTI inputs


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