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.
5) The deadline for making payments under the Vivad Se Vishwas plan (without additional amounts) has been extended until 31 August, while the deadline for making payments with additional amounts has been extended until 31 October.
6)TDS: The Certificate of Tax Deducted at Source (TDS) that is due to be sent to an employee by 15th June 2021 may be provided on or before 31st July 2021.
7)Taxpayers’ compliance obligations, such as investment, deposit, payment, acquisition, purchase, construction, or any other action, by whatever name referred to, for the purpose of claiming any exemption, must be fulfilled on or before 30th September 2021.
8) Another benefit to income taxpayers is a three-month extension of the tax deduction for those investing in residential real estate. To qualify for a longer-than-three-month extension of the tax break, the investment necessary on or after April 1 can now be made through September 30.
9) Individuals now have until September 30 to file their tax returns for income received during the fiscal year 2020-21. The Central Board of Direct Taxes (CBDT) has also extended the deadline for filing annual income tax returns (ITRs) for businesses to November 30. Government is also expected to extend the deadline for filing a revised return for Assessment Year 2020-21. Numerous deadlines for taxpayer files and assessment have been extended. Taxpayers must carefully study the fine print to ensure that application deadlines are met, as a variety of dates have been specified under various sections.
10) Uploading of declarations received from beneficiaries in Form No. 15G/15H for the quarter ended 30th June 2021, which are needed to be posted on or before 15th July 2021 and may be uploaded as late as 31st August 2021. Income payers such as interest and dividends get forms 15G and 15H from the income recipient. Payers are then expected to upload one copy of such forms to the income tax department by the seventh day of the following month. It has no effect on the average person.