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10 big tax reliefs announced by the government for taxpayers

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The government has announced several measures to ease income tax compliance and additional relief measures for taxpayers during the coronavirus pandemic. From further extension of timelines of compliances under Income Tax Act to tax exemption for expenditure on Covid treatment and ex-gratia received on death due to coronavirus. Here the 10 big announcements made by the govt for the taxpayers.

1) Many taxpayers have received financial help from their employers and well-wishers for meeting their expenses incurred for treatment of Covid-19. In order to ensure that no income tax liability arises on this account, it has been decided to provide an income-tax exemption to the amount received by a taxpayer for medical treatment from the employer or from any person for treatment of Covid-19 during FY 2019-20 and subsequent years.

2) Certain taxpayers have lost their life due to Covid-19. In order to provide relief to the family members of such taxpayer, it has been decided to provide an 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. “The announcement provides significant relief to the beneficiaries of Covid relief. Any financial assistance received by a taxpayer for Covid treatment will be totally tax-exempt. Further financial assistance extended by an employer in the event of death of an employee due to Covid is totally exempt, assistance received from others is tax-exempt up to a total of 10 lakh. These benefits are available for FY 2019-20 and beyond,” Saraswathi Kasturirangan, Partner, Deloitte India said.

3) PAN Aadhaar linking: The government has extended the deadline for PAN and Aadhaar linking to 30 September from 30 June

4)TDS: The Certificate of Tax Deducted at Source (TDS) required to be furnished to the employee by 15th June 2021 maybe furnished on or before 31st July 2021.

5) Form 16 is required to be furnished to the employee. TDS in Form No.16, required to be furnished to the employee by the employer has been extended till July 31, from July 15, 2021.

6) 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.

7)The compliances to be made by the taxpayers such as investment, deposit, payment, acquisition, purchase, construction or such other action, by whatever name called, for the purpose of claiming any exemption may be completed on or before 30th September 2021

8) In another relief to income taxpayers, an extension of three months for a tax deduction for people investing in residential houses has been granted. For tax deduction extension for more than three months, the investment required to be made on or after April 1, can now be made up to September 30.

9) Uploading of the declarations received from recipients in Form No. 15G/15H during the quarter ending 30th June 2021, which is required to be uploaded on or before 15th July 2021, maybe uploaded by 31st August 2021. “The payers of the income like interest, dividends etc. receive forms 15G and 15H from the recipient of such income. The payers in turn are required to upload one copy of such forms to the income tax department by 7 of next month. It does not affect the common man,” says tax expert Balwant Jain.

10) Individuals can now file their tax returns for income earned during the financial year 2020-21 by September 30. The Central Board of Direct Taxes (CBDT) has also extended the ITR filing deadline for companies to November 30. “It is expected that Government may also extend the due date for filing a revised return for Assessment Year 2020-21. Various deadlines as regards filings by taxpayers and assessment too have been extended. Taxpayers shall have to carefully read the fine print to check the application deadlines as a diverse set of dates have been prescribed under different sections,” said Kumarmanglam Vijay, Partner, J Sagar Associates.

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