The Centre has announced tax exemptions to incentivise employers and members of the public for assisting people with Covid-19 treatment expenses and also those who have lost their kin to the virus.
Minister of state in the finance ministry, Anurag Thakur confirmed the development. He said, “Amount paid for treatment of an employee by an employer or to any another person in 2019-20 and subsequent will not be taxed.”
The finance ministry released a detailed notification regarding the tax exemptions. As per the ministry, any amount spent by anyone for the treatment of an employee or someone else would become free from taxation. In simple terms, the person who pays for the treatment and the beneficiary of the payment will not face tax liability.
The government on Friday extended deadlines for various income tax compliances.
The income tax department, in a statement, said the payment deadline for Vivad Se Vishwas direct tax dispute resolution scheme has been extended by two months till August 31.
Taxpayers can make payments till October 31 with additional amount of interest. The last date for PAN-Aadhaar linking too has been extended by three months to September 30, 2021.
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.
