Recently, the government has announced certain tax benefits and compliance reliefs for the taxpayers who are facing hardships at the time of the pandemic. The surge in the pandemic has hit every sector and the whole nation is fighting really hard to recover its losses.
Things will take some time to be back to normal, therefore, the government has taken some decisions regarding giving tax benefits and relaxation to the taxpayers that will give them some relief for a certain amount of time.
Here are some of the important announcements that were released by the government for the taxpayers and it will be beneficial for you if you go through them once.Avoid Common Mistakes While Filing Your Income Tax Return
5 Big Tax benefits and Relief Announcement for Taxpayers
- The employees will be exempted to pay taxes if they are receiving an amount from employers or any other person for covid treatment. Not only that, many taxpayers have received financial help from their employers and well-wishers who were in need and wanted to meet their expenses for the treatment of Covid-19. In order to make sure that no income tax liability arises on this account, it has been decided by the government to give income tax exemption to the amount which is received by a taxpayer for medical treatment from an employer or from any person during the Financial Year 2019-2020 and subsequent years.
- It has been made clear that no tax will be taken on ex-gratia payments that will be received by the family member of the deceased employee due to covid. The government also said that there will also be no tax on financial help provided by friends and family till the aggregate amount reaches Rs. 10 Lakh. This was a great relief that was brought in by the CBDT. The taxpayers have gone through a lot during these days and have faced several difficulties whenever they were hospitalized or were subjected to serious medication. The exemption of ex-gratia amount received on death to relatives is a good step and will lessen some burden on the family.
- For those who are still unaware, the deadline for PAN and Aadhaar linking has been extended by the government from June 30 to September 30. Many people have come up with issues regarding linking their PAN with Aadhaar at the new Income-tax e-filing portal, that is why the government has extended the date to September 30, 2021.
- Another great news has been flashed recently that the deadline for making payment (without additional amount) under Vivad Se Vishwas scheme has been extended till August 31, whereas, the last payment date with additional amount has been extended till October 31. The delay and extension of dates are definitely going to benefit taxpayers by giving them a moment of relief.
- The tax compliance deadline for saving capital gains tax also extended. The tax compliance deadline that was falling between April 1, 2021, and September 29, 2021, regarding making an investment, payment, deposit, purchase, acquisition, construction, or other action responsible for saving tax under provisions contained in Section 54 to 54GB of the Income Tax Act, has now been extended till September 30, 2021. So, if someone was required to make an investment in 54EC bonds to save capital gains on house property, then that person can now make the investment till September 30 as earlier the deadline was June 30, 2021.