Tax relief on financial aid for COVID care; Aadhaar-PAN link deadline extended
The government on Friday (June 25) announced income tax relief for monetary aids received by people for COVID treatment. It also gave tax exemption to ex-gratia received by kin of the deceased. If received from employers, the exemption is available without any upper limit, and, in case received from others, the waiver will be available up to ₹10 lakh.
The government also extended the due date to link Aadhaar card with Permanent Account Number (PAN) till September 30 as well as the last date for payment under ‘Vivad se Vishwas’ by 2-4 months. [The earlier deadline to settle disputes and make payment under the scheme was April 30].
The earlier deadline for Aadhaar-PAN link was set to expire on June 30. The government has been constantly pushing the last date to provide additional time for the interlinking of Aadhaar with PAN for those cardholders who are yet to complete the process.
The deadline for employers to furnish Tax Deducted at Source (TDS) certificate in Form 16 to employees too has been extended till July 31, from July 15, 2021.
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“In order to ensure that no income tax liability arises on this account, it has been decided to provide income-tax exemption to the amount received by a taxpayer for medical treatment from employer or from any person for treatment of COVID-19 during FY20 and subsequent years,” the Central Board of Direct Taxes (CBDT) said in a statement.
“It has been decided to provide income-tax exemption to ex-gratia payment received by family members of a person from the employer of such person or from other person on the death of the person on account of Covid-19 during FY20 and subsequent years.
“In order to ensure that no income tax liability arises on this account, it has been decided to provide income-tax exemption to the amount received by a taxpayer for medical treatment from employer or from any person for treatment of COVID during FY20 and subsequent years,” the Central Board of Direct Taxes (CBDT) said in a statement.
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“It has been decided to provide income-tax exemption to ex-gratia payment received by family members of a person from the employer of such person or from other person on the death of the person on account of Covid-19 during FY20 and subsequent years.
“The exemption shall be allowed without any limit for the amount received from the employer and the exemption shall be limited to Rs 10 lakh in aggregate for the amount received from any other persons,” it added.
Legislative measures for the decisions will be proposed in due course of time, it added.
The last date of payment of amount under Vivad se Vishwas (without additional amount) which was earlier extended to June 30 is further extended to August 31. The last date of payment under Vivad se Vishwas (with additional amount) has been notified as October 31, 2021.
