10 Key Tax Related Decisions Announced by Government
The government has proposed numerous measures aimed at streamlining income tax compliance and providing further help to taxpayers in the wake of the coronavirus pandemic. From further extensions of compliance deadlines under the Income Tax Act to tax exemption for Covid treatment and ex-gratia obtained in the event of a coronavirus-related death. Here are the ten most significant announcements made by the government on behalf of taxpayers.
1) Certain taxpayers have perished as a result of Covid-19. To provide relief to such taxpayer’s family members, it has been determined to exclude from income tax any ex-gratia payment received by family members of a person from the person’s employer or another person upon the person’s death as a result of Covid-19. The announcement brings tremendous relief to Covid beneficiaries. Any financial aid a taxpayer receives for Covid treatment will be completely tax-exempt. Additional financial support provided by an employer in the event of an employee’s death as a result of Covid is completely tax-exempt, while aid obtained from others is tax-exempt up to a maximum of ten lakh. These benefits are available for fiscal years 2019-20 and subsequent years.
2) Connecting PAN and Aadhaar: The government has extended the deadline for linking PAN and Aadhaar from 30 June to 30 September.
3) The employee must be given with Form 16. TDS in Form No.16, which the employer is obligated to provide to the employee, has been extended until July 31, 2021, from July 15, 2021.
4) Numerous taxpayers have obtained financial assistance from their companies and well-wishers to cover the costs of Covid-19 treatment. To guarantee that no income tax liability occurs on this account, it has been determined to exempt from income tax any sum received by a taxpayer for medical treatment for Covid-19 from his or her employer or from any other person during FY 2019-20 and following years. Continue Reading