News Cubic Studio

Truth and Reality

Government extends deadline for compliances

The government has once again extended the deadline for compliances under the Income Tax Act. Along with this, tax exemption has also been announced on the expenditure on treatment of COVID-19 and ex-gratia received on death due to COVID-19. Giving this information today, Minister of State for Finance Anurag Thakur said that many taxpayers have received funds from their employers and well wishers in the form of assistance to meet the expenses incurred on the treatment of COVID-19. In order to ensure that there is no income tax liability on this amount, the taxpayer is exempted from income tax on the amount received from the employer or any person for the treatment of COVID-19 in the financial year 2019-20 and subsequent years. It has been decided to provide.

He said that unfortunately, some taxpayers lost their lives due to COVID-19. The employers and well-wishers had given financial assistance to their families, so that they could overcome the difficulties arising out of the sudden death of the earning member of their family. In order to provide relief to the next of kin of such taxpayer, on the death of any person due to COVID-19 during the financial year 2019-20 and subsequent years, the amount of ex-gratia received by his family from that person’s employer or any other person. It has been decided to provide exemption from income tax. Exemption will be allowed on the amount received from the employer without any limit and for the amount received from any other person up to a total amount of Rs.10 lakh.

He said that the necessary legislative amendments for the above decisions would be proposed soon. The Minister of State said that in view of the impact of the COVID-19 pandemic, taxpayers are also facing inconvenience in fulfilling certain tax compliances and responding to various notices. In order to ease the compliances to be done by the taxpayers in these difficult times, the period of various types of compliances has been extended.