Govt. Announce tax exemption for expenditure on Covid treatment and ex-gratia received on death due to covid.

 For treatment of covid, many taxpayers have received financial help from their employers and well-wishers for meeting their expenses in this pandemic. During the financial year 2019-2020 and the subsequent years 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, to ensure that no liability of income tax arises.

Due to Covid, certain taxpayers have lost their life. Employers or well-wishers of such taxpayers had extended financial assistance to their families. So they could handle difficulties arise due to the sudden loss of earning member of the family.

Employers and well-wishers of person who lost his/her life had extended their financial help to such person’s family members to cope with the challenges arises. To provide relief to the family members of such taxpayers, Govt has been decided to provide income tax exemption to ex-gratia payment received by family members of a person from the employer on account of Covid-19 during 2019-2020. The exemption shall be allowed without any limit for the amount received from the employer and the exemption shall be limited to 10 Lakhs in aggregate for the amount received from any other person.

Necessary legislative amendments for the above decision taken.

  • Extension of Timelines

In the Covid-19 pandemic, taxpayers are facing inconvenience in meeting tax compliance and filling response to various notices. In order to ease compliances to be made by taxpayers during this difficult time, reliefs are being provided through Notification nos. 74/2021 & 75/ 2021 dated 25th June 2021 circular no 12/2021 dated 25th June 2021.

  • Objection to Dispute Resolution Panel and assessing officer under section 144C of the Income-Tax act,1961 –Last Date of filling under that section is 1st June ,2021 time provided in that section by 31st August,2021 whichever is later.

Some more reliefs are

Extension of TimelinesRequired dateExtended date Can be Furnished before
Statement of deduction of Tax31st May 202130th June 202115th July 2021
Certificate of Tax deducted at source   (In Form No.16 )15th June 202115th July 202131st July 2021
The Statement of income paid or credited                     In Form No 64(D)15th June 202115th July 202131st July 2021
The Statement of income paid or credited                    In Form No.64(C)30th June 202115th July 202131st July 2021

Application under section 10(23C), 12AB,35 (1), (ii),/(ilia)/(iii) and 80G of the act in the Form No 10A/ Form No.10AB, for registration / provisional registration /intimation / approval /provisional approval of Trust / Institution / Research/ Associations etc. required to be made on or  before 30th June 2021, may be made on or before 31st August 2021.

The Compliances to be made by the taxpayers as investments, deposits payments, acquisition, purchase, construction, or such other action, by whatever name called, claiming any exemption under the provisions contained in section 54 to 54GB of the Act for which the last date falls between 1st April 2021, to 29th September 2021 (Both Days inclusive) may be completed on or before 30th September 2021.

The quarterly statement in Form No.15CC to be furnished by an authorized dealer in respect of remittances made for the quarter ending on 30th June 2021

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