New Delhi: Extending yet one more aid to taxpayers affected in the course of the second wave of Coronavirus, the Central authorities on Friday introduced tax exemption for expenditure on Covid-19 remedy throughout FY 2019-20 and subsequent years.
Additionally, the federal government has mentioned that tax rebates will probably be given to those that have acquired and even given ex-gratia on demise as a result of Covid-19.
As per the announcement, the ex-gratia funds acquired from employers by members of the family in case of staff’ demise as a result of Coronavirus can be exempt from earnings tax in fiscal 2019-20 and subsequent years.
The restrict for such tax-exempted cost can be Rs 10 lakh in case it’s acquired from some other particular person.
“The exemption shall be allowed with none restrict for the quantity acquired from the employer and the exemption shall be restricted to Rs. 10 lakh in combination for the quantity acquired from some other individuals,”the notification issued by authorities learn.
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Whereas making the announcement, Minister of state within the finance ministry, Anurag Thakur mentioned: “Quantity paid for remedy of an worker by an employer or to any one other particular person in 2019-20 and subsequent won’t be taxed.”
With this announcement, any quantity spent by an individual for the remedy of an worker or another person would turn out to be free from taxation. This implies, any one that has paid for the remedy and the beneficiary of the cost won’t face tax legal responsibility.
“With a view to ease the compliance burden of taxpayers throughout this troublesome time, reliefs are being offered…,” the Central Board of Direct Taxes (CBDT) mentioned in a press release.
“With a view to be sure that no earnings tax legal responsibility arises on this account, it has been determined to supply income-tax exemption to the quantity acquired by a taxpayer for medical remedy from employer or from any particular person for remedy of Covid-19 throughout FY 2019-20 and subsequent years,” it added.
Moreover, the federal government has additionally prolonged deadline for PAN-Aadhaar linking too has been prolonged by three months to September 30, 2021, whereas the identical for furnishing Tax Deducted at Supply (TDS) certificates in Type 16 to the workers by employers has been prolonged until July 31, from July 15, 2021.