Union Minister of State for Finance Anurag Thakur announced tax concessions for payment towards COVID-19 treatment or death on Friday, 25 June, news agency ANI reported.
“Amount paid for medical treatment to an employee by an employer or to any person by any other person on account of treatment of COVID for the financial year 2019-20, and subsequent year, would not be taxed in hands of the employee, or any person receiving the benefit.”Anurag Thakur, Minister of State for Finance
He further added that ex gratia payment by an employer to an employee’s family or by any person to any other person’s family on the death of the employee or any other person on account of COVID for the financial year 2019-20, or the subsequent year, will be exempted from tax. Ex gratia payment from any other person is to be restricted to Rs 10 lakh.
Some other tax concessions announced by MoS Anurag Thakur are:
- More time has been given to invest in a residential house. For tax deduction, there will be an extension of more than three months. The investment required to be made on or after 1 April can now be made up to 30 September.
- An extension of three months has been granted for PAN-Aadhaar linking, from 30 June to 30 September.
- For payment without interest, an extension of two months is granted, from 30 June to 31 August.
- Closing the scheme with interest in the next two months by 31 October.
The time limit for compliances has been extended by 15 days to two months or more. These include:
- For filling TDS statements, time extended from 30 June to 15 July.
- For issuing tax deduction certificates, time has been extended from 15 July to 31 July.
- For filing foreign remittance statement, time has been extended from 15 July to 31 July.
- For registration of trust and institutions, time has been extended from 30 June to 31 August.
- Option to withdraw cases from settlement commission, time extended from 27 June to 31 July.
(With inputs from ANI.)
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