Centre exempts IT from monetary benefits received for COVID treatment
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New Delhi: People who received monetary aids for COVID treatment will be included in the list of beneficiaries of Income Tax exemption as per the Central government's plan to ease the economic impact of the pandemic.
The tax exemption will also be extended to ex-gratia received by the kin of people who succumbed to the virus infection, according to a statement released by the Central Board of Direct Taxes.
The Centre has decided to provide an income-tax exemption to the amount received by a taxpayer for medical treatment from the employer or from any person for treatment of Covid-19 during FY20 and subsequent years, the statement said.
The family members of the deceased who received ex-gratia from the employer of such person or from other people on the death of the person on account of Covid-19 during FY20 and subsequent years will also be exempted from paying Income Tax for the money received, the CBST said.
"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.
The decision came out after the government recognised the difficulties of taxpayers in complying with the tax rules due to the pandemic.
The CBDT also released notification extending the due date of various compliances by which September 30, 2021, has now been fixed as the last date to link Aadhaar with PAN.
The last date of payment of the amount under Vivad se Vishwas without additional payment has also been extended to August 31, 2021, from the previous set last date of June 30, 2021, and the payment with the additional amount can be payable till October 31, 2021.